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Raspberry Pi Shares Slip After 43% First‑Half Profit Drop

Investors now scrutinize costs, tariff exposure, valuation.

Overview

  • Pre-tax profit fell 43% to $6.2m in the six months to June as revenue declined nearly 6% to $135.5m and adjusted earnings slid 7% to $19.4m.
  • The stock fell as much as 5% to 382p and is down 42% this year, remaining above its 280p IPO price but far below the 780p peak reached in January.
  • Chief executive Eben Upton said the second half has started well and kept full-year guidance intact, pointing to an 8% sequential rise in shipments and a sizable order backlog.
  • Microcontroller volumes surpassed board sales for the first time, with 4.5 million chips shipped in the half; seven products launched and further releases are scheduled this year, including a new AI add-on.
  • R&D spending rose nearly 40% and memory prices have surged, tariffs remain a watchpoint with some mitigation from UK manufacturing, and analysts flagged stretched valuation at about 35 times forecast earnings.