Stock Markets June 5, 2026 03:48 AM

Raspberry Pi Shares Jump After Company Raises 2026 Profit Outlook

Cambridge computing firm says first-half profitability will be materially ahead of 2025 and signals FY 2026 EBIT above market expectations

By Maya Rios

Raspberry Pi Holdings Plc saw its stock surge more than 20% on Friday after the company said first-half profitability would be materially ahead of 2025 and upgraded its full-year outlook, with FY 2026 EBIT now expected to come in ahead of the consensus $42 million estimate. The company highlighted strong unit volumes, a favorable product mix and the use of lower-cost DRAM inventory accumulated in FY 2025 as drivers of improved margins, while warning that the inventory benefit is temporary and that DRAM pricing and macroeconomic uncertainty remain headwinds for the second half.

Raspberry Pi Shares Jump After Company Raises 2026 Profit Outlook

Key Points

  • Shares rose more than 20% on Friday after the company said first-half profitability would be materially ahead of 2025 and upgraded its full-year outlook.
  • Raspberry Pi expects units for the six months ending June 30 to exceed 4 million, with Adjusted EBIT supported by higher volumes, a favourable product mix, and use of low-density DRAM inventory bought during FY 2025.
  • Sectors affected include computing hardware and semiconductor supply chains, particularly memory suppliers and distributors tied to DRAM pricing and availability.

Raspberry Pi Holdings Plc experienced a sharp rise in its share price on Friday after the Cambridge-based hardware company signalled that profitability for the first half of its financial year would be "materially ahead" of 2025 and raised its full-year outlook.

Shares opened at 906p and climbed to an intraday high of 963.50p on volume of 332,600 shares. The stock has gained roughly 42% since mid-May 2026, when it traded near 673p, and is now trading at levels more than double its 2024 trading range of around 400p.


Operational drivers cited by the company

In a regulatory filing, Raspberry Pi said units for the six months ending June 30 are expected to exceed 4 million. The filing attributed expected Adjusted EBIT improvement to "continued growth in unit volumes, a favourable product mix, and the ongoing utilisation of low-density DRAM inventory accumulated throughout FY 2025."

The company added that the strong first-half performance will result in FY 2026 EBIT coming in ahead of the consensus market expectation of $42 million, based on published analyst forecasts as of June 4. In its filing the company stated: "The strong profitability delivered in the first half is expected to result in FY 2026 EBIT materially ahead of market expectations."


Temporary margin tailwinds and second-half headwinds

Management cautioned that the inventory benefit underpinning first-half margins is temporary. The filing warned that "Unit economics are expected to moderate in H2 as inventory of memory procured at a lower cost in earlier periods is depleted," and noted that DRAM-related price increases and macroeconomic uncertainty remain headwinds in the second half.

On its memory supply position, the company said it "continues to benefit from its existing memory vendor relationships" and plans to pursue "strategic purchases of memory inventory" using its credit facilities through FY 2026. At the same time, the filing acknowledged that "the pricing and availability of DRAM" remain challenging.


Market reaction

The stock spike followed the filing that upgraded guidance for the year, reflecting investor appetite for confirmation that stronger unit sales and favourable product mix can translate into improved profitability. Volume on the day of the move reached 332,600 shares as the stock climbed above recent trading ranges.

What the company has said in its own words

"The strong profitability delivered in the first half is expected to result in FY 2026 EBIT materially ahead of market expectations."

And on inventory and supply: "continues to benefit from its existing memory vendor relationships"; the company will make "strategic purchases of memory inventory" through its credit facilities through FY 2026, while recognising that "the pricing and availability of DRAM" remain challenging.

Risks

  • The inventory-driven margin improvement is temporary; unit economics are expected to moderate in H2 as lower-cost memory is depleted - this affects company profitability and hardware margins.
  • DRAM-related price increases remain a headwind, posing risk to gross margins and supply-chain costs for hardware manufacturers and distributors.
  • Macroeconomic uncertainty could weigh on demand and operational performance in the second half, impacting revenue and profit delivery for the company and related technology hardware sectors.

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