Broadcom (AVGO) Q4 2025 Earnings Call Transcript

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Thursday, Dec. 11, 2025, astatine 5 p.m. ET

• President and Chief Executive Officer — Hock Tan

• Chief Financial Officer — Kirsten Spears

• Director, Investor Relations — Ji Yoo

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Hock Tan: And convey you everyone for joining america today. Well, we conscionable ended our Q4 fiscal 2025. And earlier I get into details of that quarter, fto maine recap the year. In our fiscal 2025, consolidated gross grew 24% twelvemonth implicit year, to a grounds $64 billion, driven by AI semiconductors and VMware. AI gross grew 65% twelvemonth implicit twelvemonth to $20 billion, driving the semiconductor gross for this institution to a grounds $37 cardinal for the year. In our infrastructure bundle business, beardown adoption of VMware Cloud Foundation, oregon VCF arsenic we telephone it, drove gross maturation of 26% twelvemonth connected twelvemonth to $27 billion. In summary, 2025 was different beardown twelvemonth for Broadcom.

And we spot the spending momentum by our customers for AI continuing to accelerate successful 2026. Now let's determination connected to the results of our 4th fourth 2025. Total gross was a grounds $18 billion, up 28% twelvemonth connected twelvemonth and supra our guidance connected amended than expected maturation successful AI semiconductors arsenic good arsenic infrastructure software. Q4 consolidated adjusted EBITDA was a grounds $12.12 billion, up 34% twelvemonth connected year. So fto maine springiness you much colour connected our 2 segments. In semiconductors, gross was $11.1 cardinal arsenic twelvemonth connected twelvemonth maturation accelerated to 35%. This robust maturation was driven by AI semiconductor gross of $6.5 billion, which was up 74% twelvemonth connected year.

This represents a maturation trajectory exceeding 10 times implicit the eleven quarters we person reported this enactment of business. Our lawsuit accelerated concern much than doubled twelvemonth implicit twelvemonth arsenic we spot our customers summation adoption of XPUs, arsenic we telephone those lawsuit accelerators, successful grooming their LLMs and monetizing their platforms done inferencing APIs and applications. These XPUs, I whitethorn add, are not lone being utilized to bid and inference interior workloads by our customers. The aforesaid acquisition successful immoderate situations has been extended externally to different LLM peers. Best exemplified astatine Google wherever the TPUs utilized successful creating Gemini are besides being utilized for AI unreality computing by Apple, Cohere, and SSI arsenic a sample.

The standard astatine which we spot this happening could beryllium significant. As you are aware, past quarter, Q3 2025, we received a $10 cardinal bid to merchantability the latest TPU ironwood racks to Anthropic. This was our 4th custom. That we mentioned. In this 4th Q4, we received an further $11 cardinal bid from this aforesaid lawsuit for transportation successful precocious 2026. But that does not mean our different 2 customers are utilizing TPUs. In fact, they similar to power their ain destiny by continuing to thrust their multiyear travel to make their ain customized AI accelerators oregon XPU RECs arsenic we telephone them.