MediaTek reported third-quarter net income of NT$25.45 billion (US$850 million), down 9.3% from the previous quarter and essentially flat compared with the same period last year. Earnings per share came in at NT$15.84, below the NT$17.50 recorded in the second quarter.
The Taiwanese chipmaker generated revenue of NT$142.1 billion (US$4.74 billion) for the three months ended September, declining 5.5% sequentially but rising 7.8% year-over-year. The company attributed the quarterly drop to customers accelerating orders into the first half of the year, while the annual increase reflected stronger market share in AI-enabled flagship smartphones and tablets.
Profitability took a hit as gross margin compressed to 46.5%, down 2.6 percentage points from the prior quarter. Management noted that the previous period benefited from a one-time item contributing 1.9 percentage points to margins. Operating margin fell to 15.6% from 19.5% in the second quarter.
The company’s flagship Dimensity 9500 processor has seen stronger-than-expected demand, management said during an earnings call. MediaTek disclosed it remains on track to generate US$1 billion in cloud ASIC revenue by 2026, with projections climbing to several billion dollars the following year. Research and development expenses totaled NT$36.35 billion (US$1.21 billion), representing 25.6% of revenue.
