MediaTek (2454) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached TWD 150.2 billion (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 TWD 596 billion (NT$595,966 million), up 12.3% year-over-year, marking another record.

• Net income for Q4 2025 was TWD 23.1 billion (NT$23,074 million), down 9.3% sequentially and 3.6% year-over-year; full-year net income was TWD 106.1 billion (NT$106,118 million), down 1% year-over-year.

• Growth was led by flagship Dimensity chips, connectivity solutions (Wi-Fi 7, 5G modem, 10G-PON), and expansion into data center and automotive.

• Significant progress in 2nm tape out, Release 19 5G-Advanced NR NTN, and high-performance computing with NVIDIA.

Financial highlights

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

• Q4 2025 operating income was TWD 21.9 billion (NT$21,850 million), down 1.5% sequentially, up 2% year-over-year.

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

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

• Q4 2025 net profit margin was 15.4%, down from 17.9% in Q3 2025 and 17.3% in Q4 2024.

Outlook and guidance

• 2026 Q1 revenue expected between TWD 141.2–150.2 billion, 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.