Broadcom Inc. stock research
FY2025 Q4
Broadcom (AVGO) Gross Margin — Quarter Ended Nov 2, 2025
Revenue increased and cost of revenue also rose, yet gross profit expanded enough to lift gross margin relative to both the preceding quarter and the same quarter one year earlier. The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew at a faster pace than revenue, driving the margin improvement.
Gross margin takeaway
Quarter ended Nov 2, 2025 · FY2025 Q4
Revenue increased and cost of revenue also rose, yet gross profit expanded enough to lift gross margin relative to both the preceding quarter and the same quarter one year earlier. The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew at a faster pace than revenue, driving the margin improvement.
- The strongest observable driver is the widening of gross profit relative to revenue, as gross profit increased more than revenue did from the prior quarter and from the year-ago quarter. No further cause is supported by the supplied data.
- Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue, gross profit, and gross margin were all higher, while cost of revenue was higher as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$12.2B
Revenue
$18.0B
Cost of revenue
$5.8B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+3.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 2, 2025 | $14.9B | $10.1B | $4.8B | 68.0% |
| May 4, 2025 | $15.0B | $10.2B | $4.8B | 68.0% |
| Aug 3, 2025 | $16.0B | $10.7B | $5.2B | 67.1% |
| Nov 2, 2025 | $18.0B | $12.2B | $5.8B | 68.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2025
+0.9 pts
Year-over-year change
Nov 3, 2024
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the widening of gross profit relative to revenue, as gross profit increased more than revenue did from the prior quarter and from the year-ago quarter. No further cause is supported by the supplied data.
Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue, gross profit, and gross margin were all higher, while cost of revenue was higher as well.
Monitor whether cost of revenue continues to rise at a rate that could compress the margin improvement seen this quarter.