AVGO Earnings Prediction
The chart below shows how AVGO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AVGO sees a -1.26% change in stock price 10 days leading up to the earnings, and a +9.57% change 10 days following the report. On the earnings day itself, the stock moves by +0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
AVGO Key Earning Data
AVGO Earnings Analysis
Positive
Record Revenue Achievement: Broadcom reported a record total revenue of $14.9 billion for Q1 2025, up 25% year on year.
Record EBITDA Growth: Consolidated adjusted EBITDA reached a record $10.1 billion, reflecting a 41% year-on-year increase.
AI Revenue Surge: AI revenue surged to $4.1 billion, marking a 77% year-on-year growth, with expectations to grow to $4.4 billion in Q2 2025.
Semiconductor Revenue Surge: The semiconductor solutions segment generated $8.2 billion in revenue, up 11% year on year, driven by strong AI demand.
Infrastructure Software Revenue Surge: Infrastructure software revenue was $6.7 billion, up 47% year on year, supported by the integration of VMware and a shift to subscription models.
Gross Margin Improvement: Gross margin improved to 79.1% of revenue, exceeding initial guidance due to a favorable revenue mix.
Operating Income Surge: Operating income increased to $9.8 billion, up 44% year on year, with an operating margin of 66% of revenue.
Strong Cash Generation: Free cash flow for the quarter was $6 billion, representing 40% of revenue, demonstrating strong cash generation capabilities.
AI Investment Commitment: Broadcom is increasing R&D investments in AI, indicating a commitment to innovation and future growth in this sector.
Negative
Non-AI Semiconductor Revenue Decline: Non-AI semiconductor revenue declined 9% sequentially, indicating a seasonal decline in wireless and a slow recovery in the non-AI semiconductor market.
Wireless Revenue Outlook: Wireless revenue is expected to remain flat year on year in Q2, suggesting ongoing challenges in this segment.
Industrial Sector Resale Decline: Resales in the industrial sector were down double digits in Q1 and are expected to decline further in Q2, indicating weakness in this market.
Non-AI Semiconductor Recovery: The overall recovery in non-AI semiconductors is described as slow, which may impact future growth prospects for the company.
AI Revenue vs. Semiconductor Concerns: Despite strong growth in AI revenue, the non-AI semiconductor segment's performance is a concern, with expectations of flat revenue in Q2.
Gross Margin Outlook: The company anticipates a slight decrease in consolidated gross margin in Q2 due to the revenue mix, which could affect profitability.
Cash Flow Impact Analysis: Free cash flow as a percentage of revenue is being impacted by cash interest expenses related to debt from the VMware acquisition, which may limit financial flexibility.
AVGO FAQs
How does AVGO typically perform around its earnings report dates?
AVGO's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.26% change leading up to the report and a +9.57% change in the 10 days following the release.
Is Broadcom Inc (AVGO) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
AVGO Earning Call Sentiment
Broadcom Inc. (NASDAQ:AVGO) Q1 2025 Earnings Call Transcript
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