Broadcom Posts $63.9B Revenue, Intel Reports $52.9B in FY2025
Broadcom grew revenue 23.9% to $63.9 billion, while Intel saw a slight decline to $52.9 billion. The two firms show diverging cash flows and valuations.
Key points
- Broadcom reported FY2025 revenue of $63.9 billion, up 23.9%, with net income of $23.1 billion.
- Intel reported FY2025 revenue of $52.9 billion, down 0.5%, with a net loss of $267 million.
- Broadcom generated $26.9 billion in free cash flow, while Intel saw negative $4.9 billion.
Broadcom and Intel delivered contrasting financial results for fiscal year 2025, highlighting their diverging positions in the semiconductor market. Broadcom, focused on infrastructure software and custom chips, reported revenue of nearly $63.9 billion, a 23.9% increase year-over-year. Intel, the legacy processor maker, recorded revenue of approximately $52.9 billion, marking a slight 0.5% decline.
The divergence extends to profitability and cash generation. Broadcom achieved a net margin of 36.2% with net income of roughly $23.1 billion and free cash flow of $26.9 billion. In contrast, Intel reported a net loss of $267 million and negative free cash flow of $4.9 billion, reflecting the costs associated with its ongoing manufacturing transformation.
Broadcom's revenue growth outpaces Intel
Broadcom’s growth is driven by its role as a custom chip provider for major clients, including a $30 billion commitment with Apple. The company’s top five customers account for nearly 40% of its revenue, creating significant concentration risk. Its balance sheet shows a debt-to-equity ratio of 0.8x and a current ratio of 1.7x, indicating moderate leverage and liquidity.
Intel faces cash flow headwinds
Intel’s financial position is strained by its pivot to foundry services and domestic manufacturing. The company secured a 10% equity stake from the U.S. government, underscoring its strategic importance. However, this period saw a net loss and negative free cash flow, with a debt-to-equity ratio of 0.4x and a current ratio of 2.0x.
Valuation multiples reflect different risks
Market valuations differ significantly between the two firms. Intel trades at a forward price-to-earnings ratio of 64.4x, compared to Broadcom’s 30.6x. Conversely, Broadcom commands a higher price-to-sales multiple of 26.6x, while Intel’s stands at 10.4x. These figures reflect investor expectations regarding growth stability and risk profiles, as detailed in Yahoo Finance coverage.
