Broadcom Inc. (NASDAQ: AVGO) is a global technology leader designing, developing, and supplying a wide array of semiconductor solutions and infrastructure software. The company reported substantial growth in its second quarter of fiscal year 2025, indicating a stable upward trend in performance metrics.

For Q2 2025, Broadcom’s total revenue was $15 billion, reflecting a 20% increase from the same quarter a year earlier, driven by robust demand for AI semiconductors. Adjusted EBITDA reached $10 billion, representing 67% of revenue, an increase of 35% year-on-year. The semiconductor solutions segment contributed $8.4 billion in revenue, which was a 17% growth from the prior year.

AI semiconductor revenue alone was recorded at $4.4 billion, up 46% year-on-year. The Q2 operating income stood at $9.8 billion, showing a 37% increase over the same period last year. Gross margin for the entire company was 79.4%, while the semiconductor solutions segment had a gross margin of approximately 69%, up 140 basis points year-on-year.

The infrastructure software segment also exhibited noteworthy growth, with revenues of $6.6 billion for Q2 2025, increasing 25% compared to the prior year. The infrastructure software operating margin improved to approximately 76%, up from 60% a year ago. Free cash flow for the quarter totaled $6.4 billion, accounting for 43% of revenue.

Looking ahead, Broadcom has provided third-quarter guidance projecting revenue of approximately $15.8 billion, which would represent a year-over-year increase of 21%. Specifically, semiconductor revenue is expected to reach around $9.1 billion, up 25% year-on-year, with AI segment revenue anticipated at $5.1 billion, reflecting an increase of 60% year-on-year.

For fiscal Q3 2025, Broadcom expects adjusted EBITDA to remain at least 66% of projected revenue. The company has indicated an increased focus on managing its expenses, expecting consolidated operating expenses to be $2.1 billion, with $1.5 billion allocated to R&D.

As of the end of Q2, Broadcom had $9.5 billion in cash and cash equivalents, with total gross principal debt of $69.4 billion. The company has actively returned capital to shareholders, distributing $2.8 billion in cash dividends and repurchasing $4.2 billion in shares during the quarter. The non-GAAP diluted EPS was reported at $1.58 for Q2 2025, up from $1.10 in the same period last year.