MediaTek Q1 forecast shows potential decline in smartphone revenue, signaling challenges for the Taiwanese chipmaker’s first quarter. Consequently, investors and industry watchers are closely monitoring the company’s guidance. CEO Rick Tsai said revenue could fall up to 6% from the previous quarter.
The company expects Q1 revenue to range between NT$141.2 billion and NT$150.2 billion. Moreover, Tsai noted weaker smartphone demand and rising production costs may pressure performance. This contrasts with strong results in Q4 2025, which reflected higher shipments of its Dimensity 9500 flagship chip.
In the fourth quarter, MediaTek reported revenue of NT$150.19 billion, up 5.7% from the prior quarter. However, gross margin slipped to 46.1%, while net profit fell 9.1% to NT$22.93 billion. Earnings per share stood at NT$14.39, highlighting a softening profit trend.
For the full year of 2025, MediaTek achieved revenue of NT$595.97 billion, a 12.3% increase from 2024. Gross margin declined slightly to 47.5%, while net profit edged down 1% to NT$105.32 billion. These figures demonstrate solid top-line growth despite margin pressures.
Smartphone-related revenue reached NT$316.85 billion last year, a record high and an 8% increase from the prior year. Flagship-tier chips contributed roughly NT$95.06 billion, emphasizing MediaTek’s continued push into higher-end products.
Looking ahead, the company projects a Q1 gross margin between 44.5% and 47.5%. Tsai warned that rising memory prices and higher overall costs may reduce smartphone demand further. In response, MediaTek plans to adjust its product mix and collaborate closely with customers.
Despite the expected drop in smartphone revenue, Tsai highlighted that smart device platforms are likely to grow. Furthermore, revenue from power management chips is expected to remain stable, partially offsetting weakness in other segments.
Analysts noted that MediaTek’s guidance reflects broader industry trends, including softening global smartphone shipments and inflationary pressures on component costs. Companies in the semiconductor sector are increasingly balancing revenue growth with cost management strategies.
MediaTek Q1 forecast underscores the importance of flexibility and innovation in a challenging market. The company’s ability to diversify product lines and strengthen smart device platforms could determine performance for the remainder of 2026.
In conclusion, MediaTek Q1 forecast signals cautious optimism. While smartphone revenue faces headwinds, strategic adjustments and growth in alternative product lines may sustain overall business momentum.
