Broadcom Inc (NASDAQ:AVGO) Reports Mixed Q3 FY2025 Earnings, Beats EPS but Misses Revenue Estimates

BROADCOM INC (NASDAQ:AVGO) reported its third-quarter fiscal 2025 earnings on September 4th, delivering a mixed financial performance against analyst expectations. The semiconductor and infrastructure software giant posted strong headline numbers but fell slightly short on revenue while narrowly beating on the bottom line, resulting in a muted initial market reaction that saw the stock waver in after-hours trading.

Earnings and Revenue Performance

The company reported revenue of $15.95 billion for the quarter ended August 3, 2025, representing a robust 22% increase compared to the same period last year. However, this figure came in just below the consensus analyst estimate of $16.14 billion. On the profitability front, Broadcom reported non-GAAP earnings per share of $1.69, which slightly exceeded the $1.68 per share that analysts had projected.

Key financial highlights include:

• Revenue: $15.95 billion actual vs. $16.14 billion estimated
• Non-GAAP EPS: $1.69 actual vs. $1.68 estimated
• Year-over-year revenue growth: 22%

Market Reaction and Price Action

Following the earnings release, Broadcom's stock showed limited directional conviction in after-hours trading, edging up approximately 0.55%. This tepid response reflects the market's digestion of both the earnings miss on revenue and the slight beat on profitability. The stock's recent performance shows modest gains across various timeframes:

• Week-to-date: +1.95%
• Two-week performance: +5.13%
• Monthly performance: +1.47%

The relatively subdued movement suggests investors are weighing the solid absolute growth against the slight earnings miss, while also looking ahead to the company's forward guidance for clearer directional signals.

Forward Guidance and Analyst Expectations

Broadcom provided encouraging guidance for the fourth quarter of fiscal 2025, projecting revenue of approximately $17.4 billion. This outlook exceeds analyst expectations of $17.35 billion for the coming quarter, suggesting management remains confident in the company's growth trajectory despite the slight Q3 revenue shortfall.

For the full fiscal year 2025, analysts project:

• Revenue: $64.16 billion
• Earnings: $6.72 per share

The company's upbeat forecast, particularly in the context of AI-driven demand for its custom chips and networking equipment as noted in recent news coverage, provides a positive counterbalance to the quarterly revenue miss.

Press Release Summary

The earnings announcement highlighted Broadcom's continued growth across both semiconductor solutions and infrastructure software segments. The company also declared its regular quarterly dividend, maintaining its commitment to shareholder returns. Management emphasized strong demand in artificial intelligence-related segments, which appears to be driving both current performance and future expectations.

The mixed quarterly results against estimates, combined with stronger-than-expected guidance, create a nuanced picture for investors. While the revenue miss typically would concern markets, the company's optimistic outlook and continued AI-driven growth narrative appear to be mitigating negative sentiment.

For more detailed earnings information and analyst estimates, visit Broadcom's earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.