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IQE plc
(LSE:IQE)
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Rating:46Neutral
Price Target:
35.00 p
▼(-28.21% Downside)
Action:Reiterated
Date:10/16/26
The score is held down primarily by weak financial performance in the provided statements (persistent losses, negative 2025 gross profit, and still-negative free cash flow) and bearish near-term technical momentum (negative MACD and price below key moving averages). The earnings call provides a meaningful offset via strong growth, improved profitability metrics, and confident reiterated guidance, but supply-chain constraints and limited long-term guidance keep risk elevated.
Positive Factors
Strong growth in AI and data centers
Rapid growth in optical interconnect and related technologies ties IQE to expanding AI and data-center infrastructure demand. This broadens the company’s growth runway beyond legacy markets and can support higher utilization, stronger customer engagement, and more recurring wafer volumes.
Negative Factors
Persistent unprofitable operations
Negative gross profit and continuing operating and net losses show that the business has not yet established durable profitability. Persistent losses can limit internally funded investment, weaken resilience through demand cycles, and make future growth more dependent on operational recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth in AI and data centers
Rapid growth in optical interconnect and related technologies ties IQE to expanding AI and data-center infrastructure demand. This broadens the company’s growth runway beyond legacy markets and can support higher utilization, stronger customer engagement, and more recurring wafer volumes.
Read all positive factors
IQE plc (IQE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£496.48M
Dividend YieldN/A
Average Volume (3M)14.28M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth19.88%
EPS Growth53.94%
CountryUK
Employees460
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.02
Shares Outstanding1,331,127,300
10 Day Avg. Volume17,387,132
30 Day Avg. Volume14,278,475
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.54
Price to Sales (P/S)0.50
P/FCF Ratio-10.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.01
Revenue Forecast (FY)£128.33M
IQE plc Business Overview & Revenue Model
Company Description
IQE Plc is a holding company, which engages in the research, design, development, manufacture, and sale of compound semiconductor materials. It operates through the following segments: Wireless, Photonics, and CMOS++. The Wireless segment includes...
How the Company Makes Money
IQE primarily makes money by selling compound semiconductor epi-wafers and related services to customers that fabricate semiconductor devices. Its revenue model is mainly business-to-business and centered on: (1) Epi-wafer sales: Customers order e...
IQE plc Earnings Call Summary
Earnings Call Date:Sep 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 19, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. IQE reported 43% first-half revenue growth, higher Wireless and Photonics revenue, GBP 6 million of adjusted EBITDA, improved margins, a debt-free balance sheet and strong commercial progress through long-term agreements and customer orders. Management also reiterated upgraded 2026 guidance and identified potential upside. The main cautions were a GBP 4 million working capital outflow, substrate and rare-earth supply risks, delayed timing for GaN power, 6-inch substrate maturity and yield issues, and the absence of 2027 and long-term margin guidance.Positive Updates
First-Half Performance Exceeded Expectations
Management described the first-half results as a strong set of numbers that exceeded expectations and reflected IQE's transformed business.
Negative Updates
Working Capital Outflow
Adjusted operating cash flow was impacted by a GBP 4 million working capital outflow.
Read all updates
Q2-2026 Updates
Positive
Negative
First-Half Performance Exceeded Expectations
Management described the first-half results as a strong set of numbers that exceeded expectations and reflected IQE's transformed business.
Read all positive updates
Company Guidance
IQE reiterated its upgraded 2026 guidance and said it is “very confident of reaching our upgraded guidance,” while emphasizing that the outlook reflects “a prudent approach” and that there is “potential for upside opportunities”; the second half outlook reflects substrate supply concerns and rare earth bottlenecks, and is expected to support growth “throughout the remainder of 2026 and beyond.” The going concern statement refers to “at least 30% growth in both 2026 and 2027,” although IQE said it is “not guiding to 2027 today”; it expects to update the market when it has more LTAs, greater demand security and has worked through indium phosphide substrate constraints, with a 5-year plan and long-term targets on margins, revenue and growth to be provided in 2027.IQE plc Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
44
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 116.60M | 97.30M | 118.03M | 115.25M | 167.50M | 154.10M |
| Gross Profit | 3.44M | -3.24M | 4.45M | 2.33M | 26.40M | 17.64M |
| EBITDA | 5.11M | -507.00K | -6.22M | -1.11M | -46.68M | 5.23M |
| Net Income | -23.57M | -36.70M | -38.18M | -29.38M | -74.50M | -31.00M |
Balance Sheet | ||||||
| Total Assets | 238.22M | 213.34M | 247.05M | 273.51M | 296.10M | 351.22M |
| Cash, Cash Equivalents and Short-Term Investments | 41.60M | 15.65M | 4.66M | 5.62M | 11.60M | 10.79M |
| Total Debt | 53.94M | 91.69M | 73.99M | 54.15M | 77.60M | 70.98M |
| Total Liabilities | 89.92M | 123.64M | 112.94M | 103.73M | 121.00M | 116.60M |
| Stockholders Equity | 148.30M | 89.69M | 134.11M | 169.78M | 175.10M | 234.62M |
Cash Flow | ||||||
| Free Cash Flow | -11.74M | -4.63M | -17.72M | -12.20M | -12.00M | -3.00M |
| Operating Cash Flow | -3.36M | 3.72M | -2.88M | 5.92M | 5.90M | 15.39M |
| Investing Cash Flow | -7.79M | -8.39M | -10.19M | -17.96M | -10.70M | -18.30M |
| Financing Cash Flow | 35.70M | 15.82M | 12.16M | 6.63M | 4.73M | -11.17M |
IQE plc Technical Analysis
Neutral
48.75
Price Trends
44.76
Negative
45.11
Negative
37.42
Positive
Market Momentum
-2.76
Positive
42.60
Neutral
53.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IQE, the sentiment is Neutral. The current price of 48.75 is above the 20-day moving average (MA) of 43.60, above the 50-day MA of 44.76, and above the 200-day MA of 37.42, indicating a neutral trend. The MACD of -2.76 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IQE.
IQE plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | £49.26M | 295.00 | -0.11% | 3.73% | -10.70% | -200.00% | |
54 Neutral | £482.19M | 103.86 | 11.47% | 2.68% | -1.40% | -67.76% | |
50 Neutral | £35.71M | 49.55 | 1.32% | ― | 2.30% | -81.36% | |
46 Neutral | £496.48M | -15.92 | -19.81% | ― | 19.88% | 53.94% | |
44 Neutral | £4.86M | 5.13 | -5.96% | ― | 61.15% | ― |
* Technology Sector Average
GB:IQE
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IQE plc Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
IQE Chair Exercises Warrants as Semiconductor Group Updates Share Capital
Positive
Oct 22, 2026
IQE plc has announced that Non-Executive Chair Mark Cubitt has exercised warrants over 1,709,803 ordinary shares at an exercise price of 13.5 pence per share. Following this transaction, Cubitt’s holding increases to 3,005,108 ordinary share...
Other
IQE Director Boosts Stake with 500,000-Share Purchase
Positive
Oct 22, 2026
IQE plc has disclosed that non-executive director and PDMR Robert Dennehy purchased a total of 500,000 ordinary shares in the company on 20 October 2026. The shares were acquired on the London Stock Exchange’s AIM market at an aggregated pri...
Business Operations and StrategyRegulatory Filings and Compliance
IQE updates total voting rights and share capital for FCA disclosures
Neutral
Sep 30, 2026
IQE plc has confirmed its total voting rights as of 30 September 2026, stating that its issued share capital comprises 1,331,131,442 ordinary shares of 1 pence each, of which 4,115 are held in treasury. This leaves 1,331,127,327 ordinary shares ca...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresPrivate Placements and Financing
IQE posts double-digit growth and plans Main Market move
Positive
Sep 7, 2026
IQE reported a strong first half of 2026, with revenue up 43% to £64.6m and a swing to £6.0m in adjusted EBITDA as photonics and wireless sales accelerated. The company moved from adjusted net debt to adjusted net cash of £30.2m fol...
Business Operations and StrategyProduct-Related Announcements
IQE deepens Quintessent partnership as Quantum Dot Laser tech enters customer sampling
Positive
Sep 3, 2026
IQE plc has signed a purchase agreement with Quintessent Inc. to supply Quantum Dot Laser epitaxy on 6‑inch gallium arsenide wafers, extending a long‑standing collaboration focused on optical interconnects for AI data centres. The foun...
Regulatory Filings and Compliance
IQE Updates Total Voting Rights Following Share Capital Review
Neutral
Sep 1, 2026
IQE plc has confirmed that as of 31 August 2026 its issued share capital comprises 1,331,095,149 ordinary shares of 1 pence each, of which 4,115 are held in treasury, leaving 1,331,091,034 shares carrying voting rights. The updated total voting ri...
Business Operations and StrategyFinancial Disclosures
IQE Sets Date for Interim Results Amid Growing Compound Semiconductor Demand
Positive
Aug 12, 2026
IQE plc has announced that it will publish its unaudited interim results for the six months ended 30 June 2026 on 7 September 2026, with management scheduled to present the figures via webcast at 9:00 a.m. the same day. The timing signals an upcom...
Regulatory Filings and Compliance
IQE Director Bastani Sells 500,000 Shares on AIM
Neutral
Aug 5, 2026
IQE plc has disclosed that non-executive director and PDMR Bami Bastani sold 500,000 ordinary shares in the company on 4 August 2026 at a price of £0.4583 per share. The transaction, executed on the London Stock Exchange’s AIM market, f...
Regulatory Filings and Compliance
IQE Updates Total Voting Rights Ahead of FCA Disclosure Calculations
Neutral
Aug 3, 2026
IQE plc has confirmed that as of 31 July 2026 its issued share capital comprises 1,331,072,589 ordinary shares, of which 4,115 are held in treasury, leaving 1,331,068,474 ordinary shares carrying voting rights. The updated voting share count provi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.