Key Takeaways:
Raspberry Pi Holdings PLC (LSE:RPI) shares surged 24% to 363.20 pence after the company reported 2025 profits ahead of expectations and forecast strong revenue growth for the current year.
"Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead," Chief Executive Eben Upton said.
For the 2025 calendar year, the Cambridge-based maker of low-cost computers reported adjusted earnings before interest, tax, depreciation, and amortisation of $46.4 million, a 25% increase from the prior year. Revenue grew 25% to $323.2 million, supported by strengthening demand in the US and China through the second half.
Looking ahead, Raspberry Pi said strong sales momentum has carried into the opening months of 2026. The company anticipates full-year profitability will be in-line with market estimates, but that revenue will be "materially higher." In response to the report, analysts at Peel Hunt raised their 2026 revenue forecast for Raspberry Pi to $490.9 million from a previous estimate of $357.5 million.
The company noted that rising memory costs are being "successfully navigated" through supplier diversification, pricing adjustments, and inventory buffers. For the first time, semiconductor device volumes, at 8.4 million units, exceeded sales of its traditional boards and modules.
The strong performance provides further momentum for the company, whose shares have climbed 30% since their initial public offering in June 2024. Investors will watch for continued margin performance amid the higher cost environment in the company's next earnings report.
This article is for informational purposes only and does not constitute investment advice.
