Raspberry Pi (LSE: RPI) released full-year results Tuesday (31 March), and its shares rocketed more than 35% in response.
The update was headlined “Strong 25% EBITDA growth ahead of expectations, increased unit volumes and continued product and platform expansion.”
And CEO Eben Upton said: “We have entered FY 2026 with strong momentum, underpinned by growing demand and continued progress in direct customer engagements. Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead, I am more confident than ever in our long-term growth trajectory.“
British tech hopeful
Investors had high hopes for Raspberry Pi as a contender in the AI technology stakes. Its tiny computers must be ideal for hiding in various nooks and crannies in AI-driven vehicles, robots, and all those other devices, right?
But since the company’s initial public offering in June 2024, it’s been a bit of a disappointment. On Monday (30 March), the share price closed at 292p. That was barely above its initial offer price of 280p.
But then came this sparkling set of 2025 results. And with the shares breaking above 400p at the time of writing, first-day investors are now sitting on a gain of around 45% in less than two years.
What 2025 brought
The headline 25% rise in adjusted EBITDA beat expectations. And it led through to a 35% boost for earnings per share. Net cash ended the year down at $28.1m, from $45.8m a year prior. But that was still better than expected, “after paying down $52.2 million of extended supplier payables over the year“.
We also saw what looks like something of a technical milestone. The company sold 8.4m semiconductor devices in the year. And this is the first time semiconductor volumes have beaten sales of boards and finished modules.
Global demand has meant DRAM memory chips are still a bit of a supply bottleneck. Raspberry Pi doesn’t expect that to affect the first half of 2026 too badly, but it does say “the DRAM environment limits second-half visibility“. But strong 2025 sales do seem to have continued into the current year, at least so far.
What to do?
So is this the turnaround that UK tech growth investors have been looking for? Is Raspberry Pi set on a course to rival Nvidia at the smaller-processor end of the AI market?
Nvidia defintely has the edge in valuation terms. At least, that is, on a short-term price-to-earnings (P/E) basis. Forecasts put the US giant on a forward P/E ratio of only 20 after its recent share price decline. Raspberry Pi, meanwhile, has a forecast multiple more than twice that at 47.
Still, these are very early days — and the P/E isn’t always useful at such times. Does Raspberry Pi have the potential to make it worth considering for long-term growth investors? I certainly think so.
