IQE lifts 2025 outlook on defence and AI demand as strategic review draws bidders

IQE plc ( (GB:IQE) ) has shared an update.

IQE reported strong trading momentum in the second half of 2025, driven by faster-than-expected funding for US military and defence programmes, robust photonics demand from AI and data centre markets, and higher wireless sales linked to new handset launches, particularly benefiting its Taiwan operations. The company expects full-year 2025 revenue of about £97m and adjusted EBITDA of at least £2.0m, at the upper end of its prior guidance, supported by improved capacity utilisation, a year-end cash position of £15.6m, and a waiver from HSBC on Q4 2025 EBITDA covenant testing; it enters 2026 with a strong first-quarter order book and is advancing a strategic review that has attracted multiple non-binding offers for the group and certain assets, underscoring investor interest but with no certainty of a transaction.

The most recent analyst rating on (GB:IQE) stock is a Hold with a £7.50 price target. To see the full list of analyst forecasts on IQE plc stock, see the GB:IQE Stock Forecast page.

Spark’s Take on GB:IQE Stock

According to Spark, TipRanks’ AI Analyst, GB:IQE is a Neutral.

Overall score is held down primarily by weak financial performance (ongoing losses, very low margins, and poor cash flow) and limited valuation support due to negative earnings. Technicals provide a partial offset with strong short-term momentum, but overbought signals and a weaker longer-term trend temper that benefit.

To see Spark’s full report on GB:IQE stock, click here.

More about IQE plc

IQE plc is a Cardiff-headquartered, AIM-listed global supplier of advanced compound semiconductor wafers and materials solutions used in smart connected devices, communications infrastructure, automotive and industrial applications, and aerospace and security. As a scaled epitaxy wafer manufacturer with operations in the UK, US and Taiwan and a substantial IP portfolio, the group serves global chip and OEM customers in markets with high barriers to entry.

Average Trading Volume: 6,157,115

Technical Sentiment Signal: Sell

Current Market Cap: £71.8M

See more data about IQE stock on TipRanks’ Stock Analysis page.