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; in USD, revenue grew 4.4% sequentially and 23.8% year-over-year.

• Net income for Q2 2025 was NT$28.06 billion, up 8.1% year-over-year but down 5% sequentially; EPS was NT$17.50, up from NT$16.19 a year ago and down from NT$18.43 last quarter.

• Strong growth in flagship smartphones, connectivity, and computing devices, with AI and data center ASICs highlighted as future growth drivers.

• Flagship smartphone revenue expected to exceed $3 billion in 2025, up over 40% annually; connectivity and computing segments also forecasted for robust growth.

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

Financial highlights

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

• Operating income 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%, compared to 20.4% in Q2 2024 and 19.3% in Q1 2025.

• Non-TIFRS adjusted EPS was NT$17.81, and adjusted net income was NT$28.58 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 down 1% to up 6% year-over-year.

• In USD, Q3 revenue guidance is $4.49–4.83 billion, down 1–8% sequentially, up 10–18% year-over-year.

• Q3 gross margin forecasted at 47% ±1.5 points; operating expense ratio at 31% ±2 points.

• Flagship smartphone and AI tablet momentum expected to continue, but overall Q3 revenue to decline due to demand pulled forward.

• 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.