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July 2, 2025 • 3 min read
In the world of technology, giants like Broadcom often move markets with their performance. The company, a powerhouse in designing and supplying a vast range of semiconductor and infrastructure software products, recently released its quarterly financial results. Let's peel back the layers of their latest 10-Q filing to see how the business is performing and what the numbers tell us.
For the quarter ending May 4, 2025, Broadcom reported a massive $15.0 billion in total net revenue. This impressive figure highlights the company's significant scale and market presence. The revenue is primarily split between two sources:
After accounting for the cost of generating this revenue ($4.8 billion), Broadcom was left with a healthy gross profit of $10.2 billion, translating to a strong gross margin of 68%. This indicates excellent profitability on its core offerings. After all operating expenses, the company posted an operating income of $5.8 billion and a final net income of nearly $5.0 billion.
To get a clearer picture of how revenue flows through the company to become profit, this chart breaks down the key figures from the income statement.
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Broadcom's operations are divided into two main reportable segments, and their individual performance is quite telling.
Semiconductor Solutions: This is Broadcom's hardware engine, providing components for everything from data centers and networking equipment to smartphones and broadband access. This segment generated $8.4 billion in revenue and an operating income of $4.8 billion, boasting an impressive operating margin of 57%.
Infrastructure Software: Bolstered significantly by the landmark acquisition of VMware, this segment is now a juggernaut. It delivered $6.6 billion in revenue and a staggering operating income of nearly $5.0 billion. This results in an incredible operating margin of 76%, showcasing the high profitability of enterprise software and the successful integration of its new assets.
It's worth noting a line item called "Unallocated expenses," which totaled nearly $4.0 billion. These are general corporate costs, such as certain R&D and administrative overhead, that are not assigned to a specific business segment. This is why adding the operating incomes of the two segments gives a number much higher than the company's total operating income.
Geographically, Broadcom's sales are heavily weighted towards the Asia Pacific region, which accounted for $8.1 billion, or 54% of total revenue. This is unsurprising given the concentration of electronics manufacturing in that part of the world. The Americas followed with $4.7 billion in revenue, and Europe, the Middle East, and Africa (EMEA) contributed $2.2 billion.
Broadcom's latest quarter paints a picture of a company firing on all cylinders. The robust performance of its legacy semiconductor business, combined with the phenomenal profitability of its rapidly expanding infrastructure software division, demonstrates the power of its diversified strategy. The VMware acquisition, in particular, appears to be a major success, reshaping the company's financial landscape.
As outlined in their filing, Broadcom operates in the highly cyclical semiconductor industry and faces risks from global economic conditions. However, its strong execution and strategic pivot to software have positioned it as a formidable and highly profitable leader in the tech sector.
Last updated: July 2, 2025