Broadcom Inc (1YD.DE) Q1 2025 Earnings Report

Broadcom reported a solid QQ1 2025 results set, underscored by strong top-line growth, healthy margins, and robust cash generation. Revenue reached $14.916 billion, up 14.11% year-over-year and 6.13% quarter-over-quarter, driven by sustained demand across data center networking, enterprise storage, and infrastructure software solutions. The company delivered an EBIT margin of approximately 41.9% and a net margin near 36.9%, reflecting favorable product mix and disciplined cost management. Free cash flow amounted to $6.013 billion, supported by operating cash flow of $6.113 billion and modest capital expenditure of $100 million, enabling substantial shareholder returns via $2.036 billion in share repurchases and $2.774 billion in dividends. From a balance sheet perspective, Broadcom maintains a strong liquidity position with cash and cash equivalents of about $9.31 billion and total assets of $165.36 billion. However, the firm carries a sizable goodwill/intangible asset base (2. a combined goodwill and intangible assets of ~$136.45 billion) and a total debt load of ~$66.58 billion, yielding a net debt of ~$57.27 billion. The current ratio sits at roughly 1.00, underscoring a cautious stance on near-term liquidity while still supporting ongoing investment in strategic initiatives. The firm continues to allocate capital toward acquisitions and technology investments, balanced against a disciplined return-of-capital program. Overall, the QQ1 2025 results reinforce Broadcom’s position as a leading supplier in semiconductors and infrastructure software, with durable profitability and strong cash generation. The key questions for investors relate to sustaining demand in hyperscale and enterprise IT spend, managing integration of acquired assets, and navigating macro softness in some end-markets while maintaining disciplined capital deployment.