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Broadcom Posts Record Quarter, Guides Higher on AI Demand

Custom accelerator wins are strengthening earnings power.

Overview

  • Revenue reached $15.95 billion in Q3 fiscal 2025, up 22% year over year.
  • AI-related sales rose 63% to $5.2 billion, with the company expecting about $6.2 billion in AI revenue for Q4.
  • Broadcom guided to $17.4 billion in Q4 revenue, a 24% increase from a year earlier.
  • Non-GAAP net income was $8.4 billion and free cash flow was $7.0 billion, as the company returned $2.8 billion to shareholders including a $0.59 quarterly payout.
  • A reported $10 billion multi-year AI contract, cited by some outlets as tied to OpenAI, is described as potentially boosting results starting in 2026, though it has not been independently confirmed; CEO Hock Tan sold 100,000 shares for about $34 million on September 25.