MediaTek (2454) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NT$142.1 billion, down 5.5% sequentially but up 7.8% year-over-year; net income was NT$25.5 billion, down 9.3% sequentially and 0.5% year-over-year; EPS was NT$15.84.

• Strong demand for Dimensity 9500 SoC and AI-related products, with flagship smartphone revenue expected to exceed $3 billion in 2025.

• Consolidated financial statements for the nine months ended September 30, 2025 and 2024 were reviewed and found to present fairly in all material respects according to ROC and IAS 34 standards.

• The company operates as a global fabless semiconductor company, focusing on IC design for multimedia and mobile applications.

Financial highlights

• Gross margin for Q3 2025 was 46.5%, down 2.6 percentage points sequentially and 2.3 points year-over-year; operating income was NT$22.2 billion, down 24.5% sequentially and 7% year-over-year; operating margin was 15.6%.

• Net profit margin was 17.9%, down 0.8 points sequentially and 1.5 points year-over-year; non-TIFRS net income was NT$26 billion.

• Net sales for the nine months ended September 30, 2025 were NT$445.8 billion, up from NT$392.5 billion year-over-year; net income for the period was NT$83.0 billion.

• Basic earnings per share for the nine months ended September 30, 2025 was NT$51.76.

• Cash and financial assets (current) at quarter-end were NT$210.6 billion.

Outlook and guidance

• Q4 revenue expected between NT$142.1–150.1 billion, flat to up 6% sequentially and up 3–9% year-over-year at a forecasted FX rate of 30.6 NTD/USD.

• Gross margin forecasted at 46% ±1.5 percentage points; operating expense ratio at 31% ±2 points.

• 2025 revenue projected to exceed $19 billion, with continued growth in 2026 driven by flagship SoCs, automotive, computing, and data centers.

• The company continues to monitor the impact of new and amended IFRS standards, with no material effect expected from those adopted in 2025.