Why Soitec (ENXTPA:SOI) Is Down 38.0% After Reporting a Net Loss and Lowered Revenue Guidance

• Soitec SA held a board meeting on November 19, 2025, where it approved second-quarter fiscal 2026 revenue and reported half-year results, showing sales of €230.74 million and a net loss of €66.7 million compared to net income a year earlier.
• The company also updated its revenue guidance, forecasting mid-to-high single-digit organic sequential growth for the third quarter of 2026, highlighting an expected shift following a period of weaker financial performance.
• We’ll now consider how Soitec’s recent swing to a net loss and revised revenue guidance affect its investment narrative.

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Soitec Investment Narrative Recap

For shareholders to remain confident in Soitec, belief in a market rebound for advanced semiconductor substrates, spurred by data center, automotive, and next-generation wireless demand, is crucial. The recent net loss and downward revenue trend reinforce that normalization of customer inventories remains the key short-term catalyst; however, delayed inventory recovery continues as the greatest risk to near-term performance, and this update only underscores how meaningful that uncertainty is for prospective investors.

Among Soitec's recent announcements, Q3 2026 revenue guidance stands out: management forecasts mid-to-high single-digit sequential growth, following a period of contraction. This indicates cautious optimism for a near-term stabilization and potential upturn, but actual demand visibility depends on how quickly major customers return to regular ordering patterns amid possible continued corrections.

In sharp contrast to the optimism surrounding recovery, the biggest risk for investors to watch is whether inventory levels across Soitec’s core markets are...

Read the full narrative on Soitec (it's free!)

Soitec's narrative projects €928.3 million in revenue and €95.2 million in earnings by 2028. This requires 1.4% yearly revenue growth and a €4 million earnings increase from €91.2 million today.

Uncover how Soitec's forecasts yield a €48.35 fair value, a 108% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members provided fair value estimates from €30.30 to €86.42 per share, highlighting wide disagreement. While optimism about future earnings growth appears strong, ongoing risks tied to inventory corrections may weigh on share price recovery, see how other investors interpret the company's turning point.

Explore 4 other fair value estimates on Soitec - why the stock might be worth over 3x more than the current price!

Build Your Own Soitec Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Soitec research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Soitec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Soitec's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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