Broadcom Revenue Breakdown 2025: $63.9B Split by Segment

\n\n**Broadcom Revenue Breakdown FY2025: $63.9B Split by Segment**\n\nBroadcom (AVGO) closed fiscal year 2025 with $63.9 billion in net revenue, a 24% year-over-year increase from $51.6 billion in FY2024. That headline number alone makes Broadcom the fastest-growing mega-cap semiconductor company on the planet. But the real story is not the topline — it is how that revenue splits between two increasingly powerful engines: custom AI silicon and enterprise infrastructure — as explored in the economics of AI compute infrastructure — software built on the VMware stack.\n\n**Revenue by Segment: Two $30B+ Businesses Under One Roof**\n\nBroadcom operates through two reportable segments, each of which has crossed the threshold into standalone mega-cap territory.\n\n*Semiconductor Solutions: $36.9 billion (58% of revenue)*\n\nThe semiconductor division generated approximately $36.9 billion in FY2025, up 22% year-over-year from $30.1 billion in FY2024. This segment encompasses Broadcom’s networking, broadband, wireless, and storage semiconductor products — but the growth engine within it is unmistakable: AI.\n\nBroadcom’s AI semiconductor revenue reached roughly $15.7 billion in FY2025, up from $12.2 billion in FY2024, representing a 29% increase. But the trajectory is accelerating, not flattening. By Q4 FY2025, AI semiconductor revenue was growing at 74% year-over-year. And in Q1 FY2026 (the quarter ended February 2026), AI revenue hit $8.4 billion — a 106% year-over-year surge. The company guided Q2 FY2026 AI semiconductor revenue to $10.7 billion, implying a run rate approaching $43 billion annualized.\n\nWhat is driving this? Broadcom’s custom AI accelerator (XPU) program. The company now designs custom silicon for at least six hyperscale customers: Google (TPU partnership since 2014), Meta (MTIA accelerators), OpenAI, Anthropic, Apple, and at least one undisclosed partner. Broadcom holds roughly 70% of the custom AI accelerator design services market. Its $73 billion AI backlog, with a target of $100 billion in annual AI chip revenue by 2027, signals that this is not a cyclical spike but a structural shift in the semiconductor business.\n\nThe non-AI semiconductor business — networking switches, broadband, wireless connectivity, and enterprise storage — remains substantial but is no longer the primary growth vector. It provides the stable base that funds Broadcom’s aggressive R&D in custom silicon.\n\n*Infrastructure Software: $27.0 billion (42% of revenue)*\n\nThe infrastructure software segment generated $27.0 billion in FY2025, up 26% year-over-year from $21.5 billion in FY2024. This segment is almost entirely a VMware story.\n\nBroadcom closed the $69 billion VMware acquisition in November 2023. Fiscal year 2024 was the first full integration year, and FY2025 represents the payoff. The growth here is driven by two forces: the forced migration of VMware’s 10,000 largest customers from perpetual licenses to subscription-based VMware Cloud Foundation (VCF) bundles, and the broader enterprise trend of repatriating workloads from public cloud back to on-premise data centers.\n\nThe subscription transition has been controversial — many customers have publicly complained about steep price increases — but financially, it has been a masterstroke. Infrastructure software operating margins now sit at approximately 77%, a dramatic improvement from VMware’s pre-acquisition profitability. Broadcom extracted more margin from VMware in 18 months than VMware managed in a decade as a standalone company.\n\nBy Q4 FY2025, infrastructure software revenue reached $6.9 billion for the quarter (up 19% YoY), and the company guided Q2 FY2026 software revenue to $7.2 billion (up 9% YoY). The deceleration from 26% full-year growth to 9% guided growth signals that the easy subscription conversion gains are largely complete. Future software growth will need to come from expanding VCF’s footprint and cross-selling security and observability tools into the VMware installed base.\n\n**Year-Over-Year Growth: The Acceleration Curve**\n\nThe full-year numbers tell one story. The quarterly trajectory tells a more revealing one.\n\n| Quarter | Revenue | YoY Growth |\n|

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