Soitec announced unaudited consolidated revenue of 92 million Euros for the first quarter of FY’26 (ended on June 29th, 2025), down 24% on a reported basis compared with 121 million Euros achieved in the first quarter of FY’25. This reflects a 16% decline on an organic basis, a negative currency impact of 5% and a negative scope effect of 3% related to the divestment of Dolphin Design’s businesses.

Pierre Barnabé, Soitec’s CEO, commented: “Q1’26 revenue was slightly better than the guidance, down 16% year-on-year on an organic basis. This includes the phase-out of Imager-SOI. Artificial Intelligence continues to support strong growth in Edge & Cloud AI division, with traction both at the edge and in the cloud accelerating adoption of FD-SOI for Edge AI and Photonics-SOI for data centers. Conversely, the correction of RF-SOI inventories among our direct customers, and the ongoing weakness in the Automotive market continued to impact our revenue.

Looking ahead, we expect Q2’26 revenue to grow around 50% versus Q1’26, on an organic basis. This reflects ongoing RF-SOI inventory correction in Mobile Communications, continued weakness in Automotive & Industrial, and strong growth in Edge & Cloud AI.

In an uncertain and volatile environment, we remain focused on the factors within our control to prepare Soitec for the future. We are broadening our end-market exposure and customer base to diversify the company’s foundations. In parallel, we are accelerating the expansion of our product portfolio – across both SOI and compound semiconductors – to serve a wider range of applications. At the same time, we are building robust ecosystems that support the adoption of our products, with the ambition of establishing them as new industry standards.”

Mobile Communications

Mobile Communications revenue reached 43 million Euros in Q1’26, down 7% year-on-year on an organic basis.

After a strong seasonal tailwind in Q4’25, further correction was expected in RF-SOI customer inventories. As a result, sales of RF-SOI wafers decreased to a low level in Q1’26, below Q1’25. This mostly reflects a significant year-on-year decrease in 200-mm RF-SOI volumes sold. Sales of 300-mm RF-SOI wafers were higher than in Q1’25, driven by higher volumes, despite a slightly negative price / mix effect.

Sales of POI (Piezoelectric-on-Insulator) wafers dedicated to RF filters were stable year-on-year, reflecting ongoing growth with key US customers and a temporary slowdown in Asia. POI is becoming the reference substrate for advanced Surface Acoustic Wave (SAW) filters, increasingly adopted by leading fabless globally.

Sales of FD-SOI wafers, the only solution for fully integrated 5G mmWave system-on-chip, were significantly higher than in Q1’25. FD-SOI adoption is progressing with first design wins for Wi-Fi 7 SoCs, for premium Android smartphones.

Automotive & Industrial

In a persistently complicated automotive market, Automotive & Industrial revenue reached 5 million Euros in Q1’26, down 81% year-on-year on an organic basis.

As expected, the Power-SOI inventory replenishment that took place at customer level in Q4’25, came at the expense of volumes in Q1’26, and will continue to impact Q2’26. Meanwhile, Soitec is accelerating the transition from 200-mm to 300-mm Power-SOI to address growing demand for Battery Management Systems.

Automotive FD-SOI wafer sales were negligible in Q1’26, although the build-up of a solid ecosystem is supporting the strengthening of its adoption for analog/digital systems such as radars, microcontrollers and wireless connectivity.

Regarding SmartSiCTM, the slower growth of the electric vehicle market combined with the longer qualification cycles confirms the delay in the production ramp-up, as already communicated.

Edge & Cloud AI

Edge & Cloud AI revenue reached 44 million Euros in Q1’26, up 13% on an organic basis compared to Q1’25 despite the discontinuation of the first generation of Imager-SOI wafers for 3D imaging applications, which recorded 25 million Dollars in revenue in Q1’25. On a reported basis, Edge & Cloud AI revenue went down 4% due to the scope effect of the divestment of Dolphin Design’s businesses combined with a negative currency impact.

Soitec delivered another strong performance in Photonics-SOI in Q1’26, with sales significantly above Q1’25 levels. As AI computing power expands, driving demand for faster and more efficient data centers, Photonics-SOI stands out as the optimal solution for high-speed, high-bandwidth optical links, whether for pluggable transceivers or Co-Packaged Optics (CPOs). Soitec is capitalizing on strong Cloud infrastructure investments from Big Tech and AI players and is accelerating its Photonics-SOI roadmap with AI leaders.

FD-SOI sales were also above Q1’25 levels. Thanks to its benefits in power efficiency, performance, thermal management, and reliability, FD-SOI is a key enabler of AI-driven IoT applications across consumer, healthcare, and industrial markets.

Q2’26 outlook

Q2’26 revenue is expected to grow around 50% versus Q1’26, on an organic basis. The impact from the phasing out of Imager-SOI will be less pronounced than in Q1’26, as Imager-SOI revenue amounted to approximately 7 million Dollars in Q2’25.

Excluding Imager-SOI, Edge & Cloud AI is expected to maintain solid momentum and should be slightly up vs. Q1’26. Mobile Communications revenue will remain low, despite nearly doubling from Q1’26, as customers continue to work through excess RF-SOI inventory. As in Q1’26, Automotive & Industrial revenue in Q2’26 is expected to decline sharply versus Q2’25.

Projected FY’26 Capex cash-out is confirmed around 150 million Euros, down from 230 million Euros in FY’25.

Original – Soitec