Broadcom Inc
For the period ended May 4, 2025. Filed Jun 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 4, 2025 · Filed Jun 11, 2025
AVGO$293.69+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-02-02; filed 2025-03-12.
0001730168-25-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-04; filed 2025-06-11.
0001730168-25-000064
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 80 current paragraphs.
36 unchanged; 35 reworded; 7 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 7 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•We repurchased $2,450 million of common stock.
Current report
Research and development expense increased $278 million, or 12%, and $223 million, or 5%, for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively, compared to the prior year fiscal periods. The increases were primarily due to higher stock-based compensation.
Current report
During the fiscal quarter ended May 4, 2025, we granted two-year time- and market-based restricted stock unit awards (the “Two-Year Equity Awards”), in lieu of our annual employee equity awards historically granted in the second quarter of each fiscal year. Each Two-Year Equity Award vests on the same basis as two annual grants with staggered vesting start dates of March 15, 2025 and March 15, 2026 and successive four-year vesting periods. We recognize stock-based compensation expense related to these awards from the grant date through their respective vesting date, ranging from four to five years.
Current report
Total stock-based compensation expense was $3,051 million and $2,975 million for the two fiscal quarters ended May 4, 2025 and May 5, 2024, respectively. The increase was due to the Two-Year Equity Awards granted at higher grant-date fair values and a full quarter of expense for the annual employee equity awards granted on March 15, 2024. The increase was substantially offset by a one-time impact from aligning the vesting dates of certain equity awards assumed from the acquisition of VMware with our equity award vesting dates and the accelerated vesting of certain equity awards held by employees terminated in connection with the acquisition of VMware in the prior year fiscal periods.
Current report
In April 2025, our Board of Directors authorized a stock repurchase program to repurchase up to $10 billion of our common stock from time to time through December 31, 2025. During the fiscal quarter ended May 4, 2025, we repurchased and retired 16 million shares of our common stock for $2,450 million under this stock repurchase program. As of May 4, 2025, $7,550 million of the authorized amount remained available for repurchases.
Current report
Repurchases under this stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.
Current report
In December 2021 and May 2022, our Board of Directors authorized stock repurchase programs to repurchase up to an aggregate of $20 billion of our common stock from time to time prior to December 31, 2023. During the fiscal quarter ended February 4, 2024, we repurchased and retired 67 million shares of our common stock for $7,176 million, and all $20 billion of the aggregate authorized amount was utilized prior to expiration on December 31, 2023.
Removed paragraphs (3)
Previous report
•We issued $4.0 billion of commercial paper and $3.0 billion of senior unsecured notes and used the net proceeds, as well as cash on hand, to repay $7,595 million of our unsecured term loans.
Previous report
•Accounts payable increased to $1,905 million at February 2, 2025 from $1,662 million at November 3, 2024 primarily due to the timing of payments.
Previous report
•Inventory increased to $1,908 million at February 2, 2025 from $1,760 million at November 3, 2024 primarily to support higher expected shipments.
Reworded paragraphs (35)
Previous wording
Our fiscal year ending November 2, 2025 (“fiscal year 2025”), is a 52-week fiscal year, with our first fiscal quarter ended February 2, 2025 containing 13 weeks compared to 14 weeks in the prior year fiscal period. The additional week resulted in higher net revenue, gross margin dollars, research and development expense, and selling, general and administrative expense in the first fiscal quarter of fiscal year 2024, compared to the corresponding current year fiscal period.
Current wording
Our fiscal year ending November 2, 2025 (“fiscal year 2025”), is a 52-week fiscal year, with our first fiscal quarter containing 13 weeks compared to 14 weeks in the prior year fiscal period. The additional week resulted in higher net revenue, gross margin dollars, research and development expense, and selling, general and administrative expense in the first two fiscal quarters of fiscal year 2024, compared to the corresponding current year fiscal period.
Previous wording
•We generated $6,113 million of cash from operations.
Current wording
•We generated $6,555 million of cash from operations.
Previous wording
•We paid $2,774 million in cash dividends.
Current wording
•We paid $2,785 million in cash dividends.
Previous wording
There were no significant changes in our critical accounting estimates during the fiscal quarter ended February 2, 2025 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report on Form 10-K.
Current wording
There were no significant changes in our critical accounting estimates during the two fiscal quarters ended May 4, 2025 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2024 Annual Report on Form 10-K.
Previous wording
We are subject to risks and exposures from the evolving macroeconomic environment, including uncertainty and volatility in financial markets, efforts of governments to stimulate or stabilize the economy and other unfavorable changes in economic conditions, as well as an increase in trade tensions and related tariffs with U.S. trading partners. While difficult to isolate and quantify, these risks may cause our net revenue to fluctuate significantly and we continuously monitor the broader impacts of these circumstances on our business, our supply chain and our results of operations.
Current wording
We are subject to risks and exposures from the evolving macroeconomic environment, including uncertainty and volatility in financial markets, efforts of governments to stimulate or stabilize the economy and other unfavorable changes in economic conditions, as well as an increase in trade tensions and related tariffs with U.S. trading partners. While difficult to isolate and quantify, these risks and exposures may cause our net revenue to fluctuate significantly and disrupt supply chain operations, and we continuously monitor the broader impacts of these circumstances on our business, our supply chain and our results of operations.
Previous wording
Fiscal Quarter Ended February 2, 2025 Compared to Fiscal Quarter Ended February 4, 2024
Current wording
Fiscal Quarter and Two Fiscal Quarters Ended May 4, 2025 Compared to Fiscal Quarter and Two Fiscal Quarters Ended May 5, 2024
Previous wording
The following table sets forth our results of operations for the periods presented:
Current wording
The following tables set forth our results of operations for the periods presented:
Previous wording
A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one customer, which is a distributor, accounted for 29% and 27% of our net revenue for the fiscal quarters ended February 2, 2025, and February 4, 2024, respectively.
Current wording
A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one customer, which is a distributor, accounted for 29% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 4, 2025, and 29% and 28% of our net revenue for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively.
Previous wording
We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 40% of our net revenue for each of the fiscal quarters ended February 2, 2025 and February 4, 2024. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
Current wording
We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 40% of our net revenue for each of the fiscal quarters and two fiscal quarters ended May 4, 2025 and May 5, 2024. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
Previous wording
Net revenue from oursemiconductor solutions segment increased in thefiscal quarter ended February 2, 2025 compared to the prior year fiscal period due to strong demand for our networking products, primarily AI networking solutions, partially offset by lower demand for our non-AI solutions, primarily broadband products. Net revenue from our infrastructure software segment increasedin thefiscal quarter ended February 2, 2025 compared to the prior year fiscal period primarily due to strong demand for our VMware Cloud Foundation (“VCF”) product, additional license revenue recognized on contracts where customers do not have the right to terminate, and the transition to a subscription license model.
Current wording
Net revenue from our infrastructure software segment increasedin the fiscal quarter andtwo fiscal quarters ended May 4, 2025 compared to the prior year fiscal periods primarily due to strong demand for our VMware Cloud Foundation (“VCF”) product, including additional license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model.
Previous wording
Gross margin was $10,145 million for the fiscal quarter ended February 2, 2025 compared to $7,375 million for the fiscal quarter ended February 4, 2024. The increase was primarily due to higher software revenue and strong product demand for our AI semiconductor solutions.
Current wording
Gross margin was $10,197 million for the fiscal quarter ended May 4, 2025 compared to $7,776 million for the fiscal quarter ended May 5, 2024, and $20,342 million for the two fiscal quarters ended May 4, 2025 compared to $15,151 million for the two fiscal quarters ended May 5, 2024. The increases were primarily due to higher software revenue and strong product demand for our AI-related semiconductor solutions.
Previous wording
As a percentage of net revenue, gross margin was 68% and 62% of net revenue for the fiscal quarters ended February 2, 2025 and February 4, 2024, respectively. The increase was primarily due to higher software revenue and lower amortization of acquisition-related intangible assets as a percentage of revenue.
Current wording
As a percentage of net revenue, gross margin was 68% of net revenue for each of the fiscal quarter and two fiscal quarters ended May 4, 2025 and 62% for each of the fiscal quarter and two fiscal quarters ended May 5, 2024. The increases were primarily due to higher software revenue mix and lower amortization of acquisition-related intangible assets as a percentage of revenue.
Previous wording
Research and development expense decreased $55 million, or 2% for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period. The decrease was primarily due to lower compensation resulting from a decrease in headcount and lower stock-based compensation.
Current wording
Selling, general and administrative expense decreased $194 million, or 15%, for the fiscal quarter ended May 4, 2025 compared to the prior year fiscal period. The decrease was primarily due to lower compensation resulting from a decrease in headcount, partially offset by higher stock-based compensation.
Previous wording
Selling, general and administrative expense decreased $623 million, or 40% for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period. The decrease was primarily due to lower compensation resulting from a decrease in headcount and lower stock-based compensation. In addition, in the prior year fiscal period, we incurred higher VMware acquisition-related costs.
Current wording
Selling, general and administrative expense decreased $817 million, or 29%, for the two fiscal quarters ended May 4, 2025 compared to the prior year fiscal period. The decrease was primarily due to lower compensation resulting from a decrease in headcount and lower stock-based compensation. In addition, in the two fiscal quarters ended May 5, 2024, we incurred higher VMware acquisition-related costs.
Previous wording
Amortization of acquisition-related intangible assets recognized in operating expenses decreased $281 million, or 35% for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period primarily due to full amortization of customer-related intangible assets from previous software acquisitions other than VMware.
Current wording
Amortization of acquisition-related intangible assets recognized in operating expenses decreased $321 million, or 39%, and $602 million, or 37%, for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively, compared to the prior year fiscal periods primarily due to full amortization of customer-related intangible assets from previous software acquisitions other than VMware.
Previous wording
Restructuring and other charges recognized in operating expenses decreased $448 million, or 72% for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period primarily due to lower employee termination costs associated with the integration of the VMware business.
Current wording
Restructuring and other charges recognized in operating expenses decreased $206 million, or 71%, and $654 million, or 72%, for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively, compared to the prior year fiscal periods primarily due to lower employee termination costs associated with the integration of the VMware business.
Previous wording
Total stock-based compensation expense was $1,280 million and $1,572 million for the fiscal quarters ended February 2, 2025, and February 4, 2024, respectively. The decrease was primarily due to the full vesting and forfeitures of certain equity awards assumed in the VMware acquisition, partially offset by December 2023 VMware inducement grants and March 2024 annual employee equity grants at higher grant-date fair values.
Current wording
Total stock-based compensation expense was $1,771 million and $1,403 million for the fiscal quarters ended May 4, 2025 and May 5, 2024, respectively. The increase was due to the Two-Year Equity Awards granted at higher grant-date fair values and a full quarter of expense for the annual employee equity awards granted on March 15, 2024.
Previous wording
The following table sets forth the total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of February 2, 2025. The remaining weighted-average service period was 2.9 years.
Current wording
The following table sets forth the total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of May 4, 2025. The remaining weighted-average service period was 3.8 years.
Previous wording
Operating income from our semiconductor solutions segment increased for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period due to strong demand for our networking products, primarily AI networking solutions, partially offset by lower demand for our non-AI solutions, primarily broadband products. Higher operating income from our infrastructure software segment in the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period was primarily due to strong demand for our VCF product, additional license revenue recognized on contracts where customers do not have the right to terminate, and the transition to a subscription license model.
Current wording
Higher operating income from our infrastructure software segment in the fiscal quarter and two fiscal quarters ended May 4, 2025 compared to the prior year fiscal periods was primarily due to strong demand for our VCF product, including additional license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model.
Previous wording
Unallocated expenses include amortization of acquisition-related intangible assets; stock-based compensation expense; restructuring and other charges; acquisition-related costs; and other costs that are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses decreased 25% for the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period due to lower restructuring and other charges, stock-based compensation expense, acquisition-related costs, and amortization of acquisition-related intangible assets.
Current wording
Unallocated expenses include amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses decreased 5% for the fiscal quarter ended May 4, 2025 compared to the prior year fiscal period due to lower amortization of acquisition-related intangible assets and restructuring and other charges, partially offset by higher stock-based compensation expense. Unallocated expenses decreased 16% for the two fiscal quarters ended May 4, 2025 compared to the prior year fiscal period due to lower restructuring and other charges, amortization of acquisition-related intangible assets, and acquisition-related costs.
Previous wording
Interest expense. Interest expense was $873 million and $926 million for the fiscal quarters ended February 2, 2025, and February 4, 2024, respectively. The decrease was primarily from an overall reduction in outstanding debt balances and debt refinancing activities that drove lower effective interest rates since the fiscal quarter ended February 4, 2024.
Current wording
Interest expense. Interest expense was $769 million and $1,642 million for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively, and $1,047 million and $1,973 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively. The decreases were primarily from an overall reduction in outstanding debt balances and debt refinancing activities that drove lower effective interest rates compared to the prior year fiscal periods.
Previous wording
Other income, net. Other income, net includes interest income, gains and losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $103 million and $185 million for the fiscal quarters ended February 2, 2025 and February 4, 2024, respectively. The decrease was primarily due to lower interest income as a result of a lower invested balance.
Current wording
Other income, net. Other income, net includes interest income, gains and losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $25 million and $128 million for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively, and $87 million and $272 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively. The decreases were primarily due to lower interest income as a result of lower interest rates on lower invested balances.
Previous wording
Provision for (benefit from) income taxes. The benefit from income taxes was $13 million for the fiscal quarter ended February 2, 2025 and was primarily due to excess tax benefits from stock-based awards partially offset by income before income taxes and a shift in the jurisdictional mix of revenue and expenses. The provision for income taxes was $68 million for the fiscal quarter ended February 4, 2024 and was primarily due to income before income taxes partially offset by excess tax benefits from stock-based awards and a valuation allowance release.
Current wording
Provision for (benefit from) income taxes. The provision for income taxes was $120 million and $107 million for the fiscal quarter and two fiscal quarters ended May 4, 2025, respectively. The provision for income taxes was primarily due to income before income taxes and the jurisdictional mix of income, partially offset by excess tax benefits from stock-based awards. The benefit from income taxes was $116 million and $48 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively. The benefit from income taxes was primarily due to excess tax benefits from stock-based awards and the jurisdictional mix of income, partially offset by income tax expense on operations.
Previous wording
Our primary sources of liquidity as of February 2, 2025 consisted of: (i) $9,307 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets and debt or equity financings from time to time.
Current wording
Our primary sources of liquidity as of May 4, 2025 consisted of: (i) $9,472 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets and debt or equity financings from time to time.
Previous wording
Our short-term and long-term liquidity requirements primarily arise from: (i) business acquisitions and investments we may make from time to time, (ii) working capital requirements, (iii) research and development and capital expenditure needs, (iv) cash dividend payments (if and when declared by our Board of Directors), (v) interest and principal payments related to our $68,757 million of outstanding indebtedness with $5,650 million principal amounts payable within 12 months and (vi) payment of income taxes. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control.
Current wording
Our short-term and long-term liquidity requirements primarily arise from: (i) business acquisitions and investments we may make from time to time, (ii) working capital requirements, (iii) research and development and capital expenditure needs, (iv) cash dividend payments (if and when declared by our Board of Directors), (v) interest and principal payments related to our $69,407 million of outstanding indebtedness with $5,550 million principal amounts payable within 12 months, (vi) discretionary share repurchases, and (vii) payment of income taxes. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control.
Previous wording
Working capital decreased to $80 million at February 2, 2025 from $2,898 million at November 3, 2024. The decrease was primarily attributable to the following:
Current wording
Working capital decreased to $1,584 million at May 4, 2025 from $2,898 million at November 3, 2024. The decrease was primarily attributable to the following:
Previous wording
•Short-term debt increased to $5,653 million at February 2, 2025 from $1,271 million at November 3, 2024 primarily due to the issuance of $4,000 million of commercial paper and $900 million of senior notes becoming due within the next twelve months, offset in part by a $495 million repayment.
Current wording
•Short-term debt increased to $5,531 million at May 4, 2025 from $1,271 million at November 3, 2024 primarily due to the net issuance of $3,900 million of commercial paper and $900 million of senior notes becoming due within the next twelve months, offset in part by a $495 million repayment.
Previous wording
•Other current liabilities increased to $12,430 million at February 2, 2025 from $11,793 million at November 3, 2024 primarily from higher contract liabilities.
Current wording
•Other current liabilities increased to $12,503 million at May 4, 2025 from $11,793 million at November 3, 2024 primarily from higher contract liabilities.
Previous wording
•Trade accounts receivable, net increased to $4,955 million at February 2, 2025 from $4,416 million at November 3, 2024 primarily due to higher software billings.
Current wording
•Trade accounts receivable, net increased to $5,563 million at May 4, 2025 from $4,416 million at November 3, 2024 primarily due to higher software billings.
Previous wording
•Other current assets increased to $4,820 million at February 2, 2025 from $4,071 million at November 3, 2024 primarily from higher software contract assets, offset in part by lower prepaid taxes.
Current wording
•Other current assets increased to $5,129 million at May 4, 2025 from $4,071 million at November 3, 2024 primarily from higher software contract assets, offset in part by lower prepaid taxes.
Previous wording
•Employee compensation and benefits decreased to $922 million at February 2, 2025 from $1,971 million at November 3, 2024 primarily due to annual employee bonus plan payments.
Current wording
•Employee compensation and benefits decreased to $1,266 million at May 4, 2025 from $1,971 million at November 3, 2024 primarily due to the timing of annual employee bonus plan payments.
Previous wording
During the fiscal quarters ended February 2, 2025 and February 4, 2024, we paid approximately $2,036 million and $1,114 million, respectively, in employee withholding taxes due upon the vesting of net settled equity awards. We withheld approximately 8 million and 10 million shares of common stock from employees in connection with such net share settlements during the fiscal quarters ended February 2, 2025 and February 4, 2024, respectively.
Current wording
During the two fiscal quarters ended May 4, 2025 and May 5, 2024, we paid $3,802 million and $2,662 million, respectively, in employee withholding taxes due upon the vesting of net settled equity awards. We withheld 17 million and 22 million shares of common stock from employees in connection with such net share settlements during the two fiscal quarters ended May 4, 2025 and May 5, 2024, respectively.
Previous wording
Cash flows from operating activities consist of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $1,298 million increase in cash provided by operations during the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period was primarily due to $4,178 million higher net income, offset in part by $2,068 million from changes in operating assets and liabilities. The lower net income in the prior year fiscal period was partially driven by higher non-cash adjustments including deferred taxes and other non-cash taxes, stock-based compensation, and amortization of intangible assets.
Current wording
Cash flows from operating activities consist of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $3,273 million increase in cash provided by operations during the two fiscal quarters ended May 4, 2025 compared to the prior year fiscal period was primarily due to $7,022 million higher net income, offset in part by $2,750 million from changes in operating assets and liabilities and $999 million lower non-cash adjustments including amortization of intangible assets and deferred taxes and other non-cash taxes.
Previous wording
Cash flows from investing activities primarily consist of cash related to acquisitions and divestitures, capital expenditures and proceeds and payments related to investments. The $25,303 million decrease in cash used in investing activities during the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period was primarily due to $25,416 million cash paid in connection with the acquisition of VMware, net of cash acquired, in the prior year fiscal period.
Current wording
Cash flows from investing activities primarily consist of cash related to acquisitions and divestitures, capital expenditures and proceeds and payments related to investments. The $25,876 million decrease in cash used in investing activities during the two fiscal quarters ended May 4, 2025 compared to the prior year fiscal period was primarily due to $25,416 million cash paid in connection with the acquisition of VMware, net of cash acquired, in the prior year fiscal period.
Previous wording
Cash flows from financing activities primarily consist of proceeds and payments related to our borrowings, dividend payments, employee withholding tax payments related to net settled equity awards and authorized stock repurchases. The $24,317 million decrease in cash flows from financing activities during the fiscal quarter ended February 2, 2025 compared to the prior year fiscal period was primarily due to a $23,044 million decrease in net proceeds from borrowings, a $7,156 million increase in payments on debt obligations, a $922 million increase in employee withholding tax payments related to net settled equity awards, and a $339 million increase in dividend payments, offset in part by $7,176 million in stock repurchases in the prior year fiscal period.
Current wording
Cash flows from financing activities primarily consist of proceeds and payments related to our borrowings, dividend payments, employee withholding tax payments related to net settled equity awards and authorized stock repurchases. Cash flows from financing activities during the two fiscal quarters ended May 4, 2025 compared to the prior year fiscal period decreased $24,645 million. The decrease was primarily from the $30,010 million of net proceeds from term loans issued in connection with the acquisition of VMware in the prior year fiscal period, increases in the current year fiscal period in employee withholding tax payments related to net settled equity awards and dividend payments, offset in part by a decrease in stock repurchases.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net revenue from oursemiconductor solutions segment increased in the fiscal quarter andtwo fiscal quarters ended May 4, 2025 compared to the prior year fiscal periods due to strong demand for our networking products, primarily AI networking solutions. The increase in thetwo fiscal quarters ended May 4, 2025 was partially offset bylower demand for our non-AI solutions, primarily broadband products.
Current report — wording carried from elsewhere
Operating income from our semiconductor solutions segment increased for the fiscal quarter and two fiscal quarters ended May 4, 2025 compared to the prior year fiscal periods due to strong demand for our networking products, primarily AI networking solutions. The increase in the two fiscal quarters ended May 4, 2025 was partially offset by lower demand for our non-AI solutions, primarily broadband products.