In the third quarter of 2025, infrastructure software revenues, which are mostly due to VMware, grew to $6.8 billion, a 17% increase compared to the same quarter last year. The reason? New subscription-based licensing that yields better operating margins.
How much better? In the three years prior to the Broadcom acquisition, operating margins hovered between 13% and 22%. Today, operating margins for Broadcom’s infrastructure software division are at 77%, Broadcom CFO Kirsten Spears…