Fabless chip and software maker Broadcom (NASDAQ: AVGO) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 29.5% year on year to $19.31 billion. On top of that, next quarter’s revenue guidance ($22 billion at the midpoint) was surprisingly good and 7.4% above what analysts were expecting. Its non-GAAP profit of $2.05 per share was 1.3% above analysts’ consensus estimates.
Is now the time to buy Broadcom? Find out by accessing our full research report, it’s free.
Broadcom (AVGO) Q4 CY2025 Highlights:
- Revenue: $19.31 billion vs analyst estimates of $19.21 billion (29.5% year-on-year growth, 0.5% beat)
- Adjusted EPS: $2.05 vs analyst estimates of $2.02 (1.3% beat)
- Adjusted EBITDA: $13.13 billion vs analyst estimates of $12.96 billion (68% margin, 1.3% beat)
- Revenue Guidance for Q1 CY2026 is $22 billion at the midpoint, above analyst estimates of $20.49 billion
- Operating Margin: 44.3%, up from 42% in the same quarter last year
- Free Cash Flow Margin: 41.5%, up from 40.3% in the same quarter last year
- Inventory Days Outstanding: 44, down from 49 in the previous quarter
- Market Capitalization: $1.49 trillion
"Broadcom achieved record first quarter revenue on continued strength in AI semiconductor solutions. Q1 AI revenue of $8.4 billion grew 106% year-over-year, above our forecast, driven by robust demand for custom AI accelerators and AI networking," said Hock Tan, President and CEO of
Company Overview
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Broadcom’s 22.6% annualized revenue growth over the last five years was incredible. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy).
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Broadcom’s annualized revenue growth of 32.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Broadcom reported robust year-on-year revenue growth of 29.5%, and its $19.31 billion of revenue topped Wall Street estimates by 0.5%. Company management is currently guiding for a 46.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 62.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and indicates its newer products and services will spur better top-line performance.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Broadcom’s DIO came in at 44, which is 18 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.
Key Takeaways from Broadcom’s Q4 Results
We were impressed by Broadcom’s strong improvement in inventory levels. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $320.02 immediately after reporting.
Indeed, Broadcom had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
