MediaTek (2454) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached NT$150.37 billion, up 18.1% year-over-year but down 1.9% sequentially; net income was NT$28.06 billion, up 8.1% year-over-year but down 5% sequentially; EPS was NT$17.50.

• Six-month revenue was NT$303.68 billion, up 16.5% year-over-year; net income for the period was NT$57.59 billion, nearly flat year-over-year.

• Strong growth in flagship smartphones, connectivity, and computing devices, with AI and data center ASICs expected to ramp in 2026.

• Mobile phones, smart edge platforms, and power ICs all contributed to year-over-year growth.

• The company completed the acquisition of IC PLUS Corp., expanding Ethernet IC design capabilities.

Financial highlights

• Gross margin for Q2 2025 was 49.1%, up 1 percentage point sequentially and 0.3 points year-over-year, including a 1.9-point one-time LTA benefit; adjusted gross margin would be 48.4%.

• Operating income for Q2 2025 was NT$29.38 billion, up 17.7% year-over-year but down 2.2% sequentially; operating margin was 19.5%.

• Net profit margin for Q2 2025 was 18.7%; non-TIFRS adjusted EPS was NT$17.81, and adjusted net income was NT$28.58 billion.

• Six-month gross margin was 49%, unchanged year-over-year; operating income for the period was NT$59.43 billion.

• Cash and cash equivalents at quarter-end were NT$185.35 billion.

Outlook and guidance

• Q3 2025 revenue expected at NT$130.1–140 billion, down 7–13% sequentially, and -1% to +6% year-over-year; in USD, $4.49–$4.83 billion, down 1–8% sequentially, up 10–18% year-over-year.

• Gross margin forecasted at 47% ±1.5 points; operating expense ratio at 31% ±2 points.

• Flagship smartphone and AI device momentum to continue, but some demand pulled forward, leading to expected Q3 revenue decline.

• The company continues to assess the impact of new and amended IFRS standards effective in 2026 and 2027, with no material effect expected from those already adopted.