Broadcom(AVGO)2025-06-05 20:27Financial Performance - Broadcom reported record second quarter revenue of $15,004 million, a 20% increase year-over-year [4]. - Adjusted EBITDA for Q2 was $10,001 million, representing 67% of revenue, up 35% year-over-year [4]. - GAAP net income for Q2 was $4,965 million, a 134% increase from the previous year [5]. - Non-GAAP net income for Q2 was $7,787 million, up 44% year-over-year [5]. - Net revenue for the fiscal quarter ended May 4, 2025, was $15,004 million, a 12.1% increase from $12,487 million in the same quarter last year [22]. - Gross margin for the fiscal quarter was $10,197 million, representing a 30.5% increase compared to $7,776 million in the same quarter last year [22]. - Operating income for the fiscal quarter was $5,829 million, up 96.3% from $2,965 million in the same quarter last year [22]. - Basic income per share from continuing operations was $1.05, compared to $0.46 in the same quarter last year, reflecting a 128.3% increase [22]. - Non-GAAP net income for the same quarter was $7,787 million, compared to $7,823 million in the prior quarter, reflecting a slight decline [26]. - Adjusted EBITDA for the quarter was $10,001 million, down from $10,083 million in the previous quarter [26]. Cash Flow and Shareholder Returns - Free cash flow reached a record $6,411 million, up 44% year-over-year, constituting 43% of revenue [4]. - The company returned $7.0 billion to shareholders in Q2 through $2.8 billion in cash dividends and $4.2 billion in stock repurchases [3]. - Cash and cash equivalents at the end of the quarter were $9,472 million, compared to $9,307 million at the end of the prior quarter [5]. - Net cash provided by operating activities increased to $6,555 million compared to $6,113 million in the previous quarter [32]. - Payments of dividends were $2,785 million, slightly up from $2,774 million in the previous quarter [32]. - The company had net cash used in investing activities of $133 million, compared to $174 million in the previous quarter [32]. - The company repurchased common stock for $2,450 million under its repurchase program [32]. Guidance and Future Expectations - AI semiconductor revenue grew 46% year-over-year to over $4.4 billion, with expectations to reach $5.1 billion in Q3 [3]. - Third quarter revenue guidance is approximately $15.8 billion, reflecting a 21% increase from the prior year [8]. Expenses and Liabilities - Research and development expenses for the fiscal quarter were $2,693 million, an increase from $2,415 million in the same quarter last year [22]. - Total operating expenses for the fiscal quarter were $4,368 million, a decrease from $4,811 million in the same quarter last year [22]. - The company reported stock-based compensation expense of $1,771 million for the fiscal quarter, compared to $1,403 million in the same quarter last year [25]. - Total liabilities decreased to $95,044 million from $97,967 million, indicating improved financial stability [30]. - Long-term debt decreased to $61,751 million from $66,295 million, indicating a reduction in leverage [30]. Inventory and Assets - Total current assets increased to $22,181 million from $19,595 million in the previous reporting period [30]. - Cash and cash equivalents rose to $9,472 million, up from $9,348 million, indicating strong liquidity [30]. - Inventory levels increased to $2,017 million from $1,760 million, suggesting potential growth in sales or production [30].