{"id":442738,"date":"2025-12-12T16:57:21","date_gmt":"2025-12-12T16:57:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/442738\/"},"modified":"2025-12-12T16:57:21","modified_gmt":"2025-12-12T16:57:21","slug":"broadcom-smashes-q4-estimates-here-is-why-stock-falling","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/442738\/","title":{"rendered":"Broadcom Smashes Q4 Estimates &#8212; Here Is Why Stock Falling"},"content":{"rendered":"\n<p class=\"yf-7hmkaz\">This article first appeared on <a href=\"https:\/\/www.gurufocus.com\/news\/3248954\/broadcom-smashes-q4-estimates--here-is-why-stock-falling?utm_source=yahoo_finance&amp;utm_medium=syndication&amp;utm_campaign=headlines&amp;r=caf6fe0e0db70d936033da5461e60141\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:GuruFocus;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">GuruFocus<\/a>.<\/p>\n<p class=\"yf-7hmkaz\">Broadcom (<a class=\"link \" href=\"https:\/\/finance.yahoo.com\/quote\/AVGO\" data-ylk=\"slk:NASDAQ:AVGO;elm:context_link;itc:0;sec:content-canvas\" target=\"_blank\" rel=\"noopener\">NASDAQ:AVGO<\/a>) shares fell about 5% on early Friday trade, following a day after the company <a href=\"https:\/\/investors.broadcom.com\/news-releases\/news-release-details\/broadcom-inc-announces-fourth-quarter-and-fiscal-year-2025\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:reported;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">reported <\/a>fourth-quarter fiscal 2025 results, which came ahead of analysts&#8217; expectations and issued guidance for the first quarter of fiscal 2026.<\/p>\n<p class=\"yf-7hmkaz\">The chipmaker posted record quarterly revenue of $18.0 billion, up 28% from a year earlier, led by a 74% jump in AI semiconductor revenue. GAAP net income rose to $8.52 billion, while non-GAAP net income reached $9.71 billion. Adjusted EBITDA was $12.22 billion, or 68% of revenue.<\/p>\n<p class=\"yf-7hmkaz\">CEO Hock Tan said Broadcom expects AI semiconductor revenue to double year-over-year to $8.2 billion in the first quarter, driven by custom AI accelerators and Ethernet AI switches. However, executives noted that margins may decline due to the higher mix of AI-related sales.<\/p>\n<p class=\"yf-7hmkaz\">The company generated $7.47 billion in free cash flow and raised its quarterly dividend 10% to $0.65 per share. Broadcom ended the quarter with $16.2 billion in cash and cash equivalents.<\/p>\n<p class=\"yf-7hmkaz\">Investors pushed Broadcom (<a class=\"link \" href=\"https:\/\/finance.yahoo.com\/quote\/AVGO\" data-ylk=\"slk:NASDAQ:AVGO;elm:context_link;itc:0;sec:content-canvas\" target=\"_blank\" rel=\"noopener\">NASDAQ:AVGO<\/a>) shares lower despite the beat because higher-margin AI sales are expected to weigh on overall profit margins.<\/p>\n<p class=\"yf-7hmkaz\">While the company posted record revenue and earnings, concerns over rising costs and a larger share of AI-related business made traders cautious, prompting the roughly 5% drop in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Broadcom (NASDAQ:AVGO) shares fell about 5% on early Friday trade, following a&hellip;\n","protected":false},"author":3,"featured_media":442739,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[22264,51,204090,50,56629,52],"class_list":{"0":"post-442738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-broadcom","9":"tag-headlines","10":"tag-hock-tan","11":"tag-news","12":"tag-quarterly-revenue","13":"tag-top-stories"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115707657889503576","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/442738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=442738"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/442738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/442739"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=442738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=442738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=442738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}