Broadcom Q4 Sales Surge 28% to $18B with $7.5B Free Cash Flow
Broadcom reported record fiscal Q4 2025 revenues of $18 billion, up 28%, driven by a 74% jump in AI semiconductor sales and $7.5 billion free cash flow. Fiscal Q1 2026 revenues are projected at $19.1 billion, led by AI semiconductor sales doubling to $8.2 billion, while debt-to-equity stands at 76.3%.
1. Q4 2025 Performance
Broadcom delivered record fiscal fourth-quarter revenues of $18 billion, up 28% year-over-year, led by a 74% increase in AI semiconductor sales. Adjusted EBITDA margin reached 68%, while free cash flow totaled $7.47 billion, equivalent to 41% of revenues.
2. Q1 2026 Outlook
For fiscal first quarter 2026, Broadcom forecasts overall revenues of $19.1 billion, reflecting 28% growth, and expects AI semiconductor revenues to double to $8.2 billion. Adjusted EBITDA margin guidance remains high at 67%, indicating continued operational efficiency.
3. Financial Position and Valuation
The company's debt-to-equity ratio stands at 76.3%, suggesting elevated leverage compared with peers, and its forward price-to-earnings multiple is 31.38, reflecting a premium valuation that factors in strong AI infrastructure demand.