Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) on Thursday reported stronger-than-expected fourth-quarter earnings, propelled by a surge in AI semiconductor sales, and raised its dividend as the chipmaker posted record revenue and robust cash flow.
For the fourth fiscal quarter ended, Broadcom reported revenue of $18.02 billion, beating analyst estimates of $17.49 billion.
Adjusted earnings per share came in at $1.95, above the $1.86 expected, while net income reached $8.52 billion. Adjusted EBITDA rose to $12.22 billion, surpassing projections of $11.6 billion.
The company generated $7.7 billion in cash from operations in Q4 and, after capital expenditures of $237 million, reported $7.47 billion in free cash flow.
“In Q4, record revenue of $18 billion grew 28% year-over-year, driven primarily by AI semiconductor revenue increasing 74% year-over-year,” Broadcom CEO Hock Tan said. “We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches.”
For the full fiscal year 2025, Broadcom posted adjusted EBITDA of $43 billion, up 35% from the prior year, and generated $26.9 billion in free cash flow.
Reflecting the strong cash position, the company said it would raise its quarterly dividend by 10% to $0.65 per share, marking the 15th consecutive annual dividend increase since 2011. CFO Kirsten Spears said the target fiscal year 2026 annual dividend of $2.60 per share sets a new record.
Broadcom also provided guidance for Q1 FY26, expecting revenue of $19.1 billion and adjusted EBITDA at 67% of projected revenue.
Shares of Broadcom were trading 2.4% higher in extended trading following the earnings release.