UK semiconductor supplier IQE's H1 revenue surges on photonics, wireless growth

Iqe

07/09/2026 07:12

Overview
UK compound semiconductor supplier's H1 2026 revenue grew 43% yr/yr
Adjusted diluted EPS loss narrowed compared to H1 2025
Company plans move to Main Market of London Stock Exchange in H1 2027

Outlook
IQE expects FY 2026 revenue growth in excess of 30% year-on-year
Company targets low-teens £m adjusted EBITDA for FY 2026
IQE sees continued strong demand in H2 2026 across all core segments

Result Drivers
PHOTONICS & WIRELESS GROWTH - Revenue gains in photonics and wireless segments drove overall growth, with photonics up 45% yr/yr on defence and AI/data centre demand, and wireless up 40% yr/yr due to market share gains and new customer platforms
MARGIN EXPANSION - Improved gross margins resulted from increased utilisation of manufacturing assets and a more favourable product mix with higher photonics sales
SUPPLY AGREEMENTS & ORDER VISIBILITY - High volume of new supply agreements since strategic review conclusion provided strong future order visibility and optimised utilisation

Company press release: ID:nRSG5458Ta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 64.6 mln
 
H1 Adjusted Loss Per Share
 
0.82p
 
H1 Adjusted EBITDA
 
GBP 6 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy."
Wall Street's median 12-month price target for IQE PLC is GBp60.00, about 26.4% above its September 4 closing price of GBp47.45

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)