Broadcom Earnings Call Transcripts
Fiscal Year 2026
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Quantum computing poses an imminent threat to current cryptography, urging organizations to start inventory and migration planning now. Prioritizing critical assets and addressing technical debt are key, while cyber resilience must encompass both prevention and recovery strategies.
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Record Q2 revenue and margins were driven by surging AI semiconductor demand, with strong bookings and long-term agreements supporting robust growth outlook. Guidance points to continued acceleration in both semiconductor and software segments, with AI revenue expected to exceed $100 billion in 2027.
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Record Q1 revenue and profitability driven by AI semiconductors, with Q2 guidance showing further acceleration. Multi-year supply agreements and a growing customer base support visibility for continued growth, while capital returns remain robust.
Fiscal Year 2025
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Fiscal 2025 saw 24% revenue growth to $64B, driven by AI and VMware, with Q4 revenue up 28% year-over-year. AI backlog reached $73B, and Q1 2026 guidance projects 28% revenue growth, with AI revenue expected to double. Dividend increased 10% and share repurchase program extended.
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AI compute is the primary growth driver, with revenue expected to accelerate beyond 60% in 2026 and a long-term target of $120 billion by 2030. Networking and disaggregation are key technology focuses, while the software business remains stable but secondary to AI.
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Record Q3 revenue and EBITDA were driven by strong AI semiconductor and VMware growth, with a $110 billion backlog and robust AI demand. Q4 guidance points to continued double-digit growth, especially in AI, while non-AI segments recover slowly.
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VMware Cloud Foundation 9.0 was unveiled as a unified, secure private cloud platform, now with advanced developer services, integrated AI capabilities, and enhanced compliance features. Customer stories from Barclays and Grinnell Mutual highlighted real-world impact, while new partnerships and innovations set the stage for future growth.
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Q2 revenue hit a record $15B, up 20% year-over-year, with AI semiconductor revenue up 46% and infrastructure software up 25%. AI growth is expected to sustain at 60% into 2026, driven by both training and inference demand, while capital allocation focuses on debt reduction and dividends.
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Record Q1 revenue and EBITDA were driven by strong AI and software growth, with AI revenue up 77% year-on-year and infrastructure software up 47%. Four new hyperscaler partners are engaged in custom accelerator development, and Q2 guidance projects continued double-digit growth.
Fiscal Year 2024
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Fiscal 2024 saw record revenue and profit growth, driven by the VMware acquisition and a 220% surge in AI revenue. Q1 FY25 guidance points to continued double-digit growth, with a focus on AI and debt reduction, and a 12% increase in annual dividends.
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AI revenue outlook for 2024 was raised to $12B, driven by strong demand and custom XPU growth. Ethernet remains the standard for hyperscalers, with new 51 Tbps single-die switches and co-packaged optics delivering major power and cost advantages. CPO adoption is set to accelerate in 2025.
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Q3 revenue surged 47% year-over-year to $13.1 billion, driven by strong AI and VMware growth. AI revenue is forecast to exceed $12 billion for fiscal 2024, with Q4 guidance raised to $14 billion in revenue and 64% adjusted EBITDA margin. Non-AI semiconductor markets are recovering, and VMware integration is ahead of plan.
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The conference highlighted a strategic pivot to private cloud and Private AI, unveiling VMware Cloud Foundation 9 with unified automation, advanced security, and edge innovations. Customer stories demonstrated rapid deployment, improved agility, and cost savings, while new AI capabilities and partnerships were announced to accelerate enterprise transformation.
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Q2 revenue surged 43% year-over-year to $12.5B, driven by AI and VMware, with organic growth at 12%. FY24 revenue guidance was raised to $51B, with AI revenue expected to exceed $11B and VMware integration progressing well.