Raspberry Pi Holdings PLC (LON: RPI) surged 20% in early trading after upgrading its full-year profit guidance, following a stronger-than-expected first-half performance driven by robust demand and favourable component purchasing strategies.
The technology company said adjusted EBITDA for the six months to 30 June is expected to be at least US$38 million, materially ahead of the same period last year and comfortably above market expectations.
Unit shipments are forecast to exceed 4 million during the first half, reflecting continued strong demand across industrial, commercial and educational markets where Raspberry Pi’s compact computing platforms are widely deployed.
Management now expects full-year EBITDA to be significantly ahead of current analyst forecasts, prompting investors to reassess growth expectations for the business.
The improved performance has been driven by a combination of higher sales volumes, a favourable product mix and the successful utilisation of low-cost DRAM inventory acquired during 2025 before memory prices increased sharply.
The company’s decision to build strategic memory inventories has provided a meaningful cost advantage during the first half, helping support margins despite rising component costs across the semiconductor sector.
Raspberry Pi said demand from original equipment manufacturers and other commercial customers has remained resilient, even as memory price inflation has affected parts of the broader electronics industry.
However, management cautioned that profitability margins are likely to moderate in the second half as lower-cost memory inventories are exhausted and the company begins purchasing components at prevailing market prices.
To address this challenge, Raspberry Pi continues to diversify its supplier base and remains confident it can secure sufficient inventory to meet full-year production targets.
The company also indicated it may utilise existing debt facilities during the remainder of the year to capitalise on opportunities to acquire memory inventory at attractive prices when available.
Looking ahead, management said its focus will increasingly shift towards expanding market share and deepening customer relationships as it seeks to build on the momentum achieved since its London Stock Exchange debut in 2024.
The strong trading update reinforces Raspberry Pi’s position as one of the standout growth stories on the London market, with investors responding positively to both the earnings upgrade and management’s confidence in future demand.
