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Raspberry Pi (LSE: RPI) launched full-year outcomes Tuesday (31 March), and its shares rocketed greater than 35% in response.
The replace was headlined “Strong 25% EBITDA growth ahead of expectations, increased unit volumes and continued product and platform expansion.”
And CEO Eben Upton stated: “Now we have entered FY 2026 with sturdy momentum, underpinned by rising demand and continued progress in direct buyer engagements. Mixed with strategic hiring, fast uptake of latest merchandise, and a channel whose capabilities are properly aligned with the alternatives forward, I’m extra assured than ever in our long-term development trajectory.“
British tech hopeful
Traders had excessive hopes for Raspberry Pi as a contender within the AI know-how stakes. Its tiny computer systems have to be preferrred for hiding in varied nooks and crannies in AI-driven automobiles, robots, and all these different gadgets, proper?
However for the reason that firm’s preliminary public providing in June 2024, it’s been a little bit of a disappointment. On Monday (30 March), the share value closed at 292p. That was barely above its preliminary provide value of 280p.
However then got here this glowing set of 2025 outcomes. And with the shares breaking above 400p on the time of writing, first-day buyers at the moment are sitting on a acquire of round 45% in lower than two years.
What 2025 introduced
The headline 25% rise in adjusted EBITDA beat expectations. And it led by way of to a 35% enhance for earnings per share. Web money ended the yr down at $28.1m, from $45.8m a yr prior. However that was nonetheless higher than anticipated, “after paying down $52.2 million of prolonged provider payables over the yr“.
We additionally noticed what seems like one thing of a technical milestone. The corporate offered 8.4m semiconductor gadgets within the yr. And that is the primary time semiconductor volumes have overwhelmed gross sales of boards and completed modules.
International demand has meant DRAM reminiscence chips are nonetheless a little bit of a provide bottleneck. Raspberry Pi doesn’t anticipate that to have an effect on the primary half of 2026 too badly, nevertheless it does say “the DRAM surroundings limits second-half visibility“. However sturdy 2025 gross sales do appear to have continued into the present yr, at the least up to now.
What to do?
So is that this the turnaround that UK tech development buyers have been on the lookout for? Is Raspberry Pi set on a course to rival Nvidia on the smaller-processor finish of the AI market?
Nvidia defintely has the sting in valuation phrases. At the very least, that’s, on a short-term price-to-earnings (P/E) foundation. Forecasts put the US large on a ahead P/E ratio of solely 20 after its current share value decline. Raspberry Pi, in the meantime, has a forecast a number of greater than twice that at 47.
Nonetheless, these are very early days — and the P/E isn’t at all times helpful at such occasions. Does Raspberry Pi have the potential to make it value contemplating for long-term development buyers? I definitely suppose so.
