Did you analyze how Broadcom Inc. (AVGO) fared in its international operations for the quarter ending July 2025? Given the widespread global presence of this chipmaker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing AVGO's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $15.95 billion, marking an improvement of 22% from the prior-year quarter. Next, we'll examine the breakdown of AVGO's revenue from abroad to comprehend the significance of its international presence.
A Look into AVGO's International Revenue Streams
Europe, the Middle East and Africa accounted for 14.2% of the company's total revenue during the quarter, translating to $2.27 billion. Revenues from this region represented a surprise of -5%, with Wall Street analysts collectively expecting $2.39 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, the Middle East and Africa contributed $2.2 billion (14.7%) and $2.04 billion (15.6%) to the total revenue, respectively.
Asia Pacific generated $8.96 billion in revenues for the company in the last quarter, constituting 56.2% of the total. This represented a surprise of +3.8% compared to the $8.63 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $8.1 billion (54%), and in the year-ago quarter, it contributed $7.04 billion (53.9%) to the total revenue.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that Broadcom Inc. will post revenues of $17.5 billion for the ongoing fiscal quarter, an increase of 24.5% from the year-ago quarter. The expected contributions from Europe, the Middle East and Africa and Asia Pacific to this revenue are 14.3%, and 52.2%, translating into $2.5 billion, and $9.14 billion, respectively.
For the full year, a total revenue of $63.16 billion is expected for the company, reflecting an increase of 22.5% from the year before. The revenues from Europe, the Middle East and Africa and Asia Pacific are expected to make up 14.8%, and 53.7% of this total, corresponding to $9.34 billion, and $33.91 billion, respectively.
Final Thoughts
Broadcom Inc.'s reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, Broadcom Inc. holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Examining the Latest Trends in Broadcom Inc.'s Stock Value
The stock has increased by 19.6% over the past month compared to the 2.4% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Broadcom Inc.,has increased 4.4% during this time frame. Over the past three months, the company's shares have experienced a gain of 47.1% relative to the S&P 500's 8.5% increase. Throughout this period, the sector overall has witnessed a 15.6% increase.
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Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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