MediaTek (2454) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached NT$150,188 million, up 5.7% sequentially and 8.8% year-over-year, at the high end of guidance, driven by favorable FX and strong smart edge product demand.

• Full-year 2025 revenue was NT$595,966 million, up 12.3% year-over-year, marking a record high.

• Net income for Q4 2025 was NT$23,074 million, down 9.3% sequentially and 3.6% year-over-year.

• Full-year 2025 net income was NT$106,118 million, a 1% decrease from 2024.

• Growth was led by flagship and premium Dimensity chips, connectivity solutions, and expansion into data center ASIC and automotive platforms.

Financial highlights

• Q4 2025 gross margin was 46.1%, down 0.4pp sequentially and 2.4pp year-over-year.

• Q4 2025 operating income was NT$21,850 million, down 1.5% sequentially, up 2% year-over-year.

• Q4 2025 EPS was NT$14.39, down from NT$15.84 in Q3 2025 and NT$14.95 in Q4 2024.

• Full-year 2025 EPS was NT$66.16, slightly lower than NT$66.92 in 2024.

• Gross margin for 2025 was 47.5%, down from 49.6% in 2024.

Outlook and guidance

• Q1 2026 revenue expected between NT$141,200–150,200 million, flat to down 6% sequentially, down 2–8% year-over-year.

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

• Data center ASIC revenue projected to exceed $1 billion in 2026, with multi-billion growth in 2027.

• Management highlighted risks including competitive pressures, supply-demand shifts, regulatory changes, and global economic conditions.

• Mobile Phone revenue expected to decline significantly in Q1 2026 due to memory and BOM cost pressures.