MediaTek reported its second-quarter 2025 earnings on July 30, with revenue landing near the top end of guidance and gross margin beating expectations, despite adverse foreign exchange impacts.
The chip player's second-quarter revenue totaled NT$150.37 billion (US$5.06 billion), down 1.9% sequentially but up 18.1% year-over-year. Gross margin rose to 49.1%, exceeding the 48.5% high end of guidance, aided by a one-time item that added 1.9pp. Operating profit reached NT$29.38 billion, down 2.2% quarter-over-quarter and up 17.7% from a year ago.
MediaTek noted that unfavorable exchange rates weighed on revenue but said it still met guidance. The company's second-quarter forecast was based on an exchange rate of NT$32.50 per US dollar, projecting revenue between NT$147.2 billion and NT$159.4 billion, and a gross margin of 47% plus or minus 1.5pp.
For the third quarter, MediaTek expects revenue between NT$130.1 billion and NT$140.0 billion, citing softer demand following early pull-ins in the first half. The outlook assumes a stronger NT$29 per US dollar, implying a 7-13% sequential decline and a year-over-year range of -1% to +6%.
With the second quarter's actual exchange rate at NT$30.9 per US dollar, MediaTek's third-quarter revenue could face a 6% hit from currency fluctuations alone.
In dollar terms, MediaTek forecasts third-quarter revenue of US$4.49 billion to US$4.83 billion, down 1-8% quarter-on-quarter and up 10-18% year-over-year. Gross margin is expected to stay within the 47% plus or minus 1.5pp range.
Article edited by Joseph Tsai
