Shares of Raspberry Pi Holdings Plc surged as much as 24% on Tuesday after the company reported strong sales growth and signalled a robust outlook for 2026, buoyed by rising global demand and expanding product lines.
The Cambridge-based firm posted revenue of $323.2 million for 2025, marking a 25% increase from the previous year, driven largely by strong demand from the United States and China.
The company said the momentum had continued into the opening months of the new financial year.
“2025 was a year of strong execution for Raspberry Pi, with accelerating demand across our global markets and adjusted Ebitda ahead of expectations,” Chief Executive Officer Eben Upton said.
He added:
“We have entered FY 2026 with strong momentum, underpinned by growing demand and continued progress in direct customer engagements.”
Semiconductor shift marks key milestone
A significant development in the results was the company’s growing semiconductor business, which overtook its traditional boards and modules segment for the first time.
Semiconductor device volumes reached 8.4 million units, reflecting a strategic pivot toward a broader product mix.
“We also passed an important milestone as semiconductor shipments exceeded those of our boards and modules for the first time, reflecting our progress towards a two-franchise business,” Upton said.
The company reported pre-tax profit of $26.5 million, up 63% from a year earlier, supported by higher volumes and improved operational efficiency.
Analysts turn more bullish on growth outlook
Analysts at Jefferies raised their 2026 revenue forecast for Raspberry Pi by 42% to $511 million, citing sustained sales momentum and improving demand trends.
“Supported by edge-AI, rising sales of semiconductors and its board-to-board strategy, Raspberry Pi is well positioned for healthy growth in the coming years,” the analysts said.
While the brokerage kept its earnings forecasts broadly unchanged, it noted that higher memory costs are being passed through to customers, helping to protect margins even as input costs rise.
The company also flagged that visibility for the second half of the year remains limited due to constraints in the DRAM market, which could impact supply conditions.
AI narrative adds to investor appeal
Investor attention has increasingly turned to Raspberry Pi’s potential role in low-cost artificial intelligence applications.
Its hardware is being used in projects such as OpenClaw, an AI chatbot that can run on clusters of Raspberry Pi devices and manage tasks such as email and calendar management.
The company’s relatively low-cost computing model has sparked discussion on social media about its suitability for mass deployment of decentralised AI systems, particularly when compared with higher-end consumer devices.
Adam Montanaro, a fund manager at Montanaro Asset Management, said in a Bloomberg report last month that the broader theme remains intact even if expectations may be stretched.
Outlook supported by demand and expansion
Raspberry Pi said its outlook is supported by continued demand, rapid uptake of new products and investments in talent and distribution.
“Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead, I am more confident than ever in our long-term growth trajectory,” Upton said.
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