Soitec S.A (SOI) | News Based Sentiment Analysis

• On May 27, 2025, Soitec announced full-year fiscal year 2025 results, reporting revenue of €891 million, a 9% decrease on a reported basis. While fourth-quarter revenue reached €327 million, remaining stable at constant exchange rates, the overall decline signals challenging market conditions impacting the company's top line.
• Following the May 27, 2025, earnings release, Soitec withdrew its FY26 guidance, including a projection of reaching $2 billion in revenue with a 40% EBITDA margin, citing reduced visibility and market uncertainties. This decision reflects a significant lack of confidence in near-term performance and a more cautious outlook.
• Earlier in the year, on February 5, 2025, Soitec reported Q3 FY25 revenue of €226 million, a 6% decrease compared to Q3 FY24. The company also revised its FY25 guidance, anticipating a high single-digit year-on-year revenue decrease and an EBITDA margin between 32% and 34%, indicating a continuing downward trend.
• On July 25, 2025, Soitec indicated a cautious approach for fiscal year 2026 due to weakness in smartphone and automotive markets, and the planned phase-out of its Imager-SOI product. Despite anticipating about 50% sequential revenue growth in Q2 FY26, this still represents a substantial decline compared to Q2 FY25, highlighting the impact of the product phase-out.
• RF-SOI inventories were expected to decrease to 11 months by the end of calendar year 2025, down from 14 months at the end of calendar year 2024, as reported on July 25, 2025. This reduction in inventory suggests an attempt to align production with lower demand, but also indicates slowing sales.
• Soitec’s stock experienced a substantial decline on September 7, 2025, opening at $37.51 after closing at $42.18, an 11.1% drop triggered by a downgrade from Citigroup to a “strong sell” rating. This negative analyst sentiment further pressured the stock price.
• Shares in Soitec SA reached a 5-year low on September 9, 2025, declining by 2.76% or 0.90 EUR to 31.73 EUR, continuing the downward trend and highlighting increasing investor skepticism.

The Investment Story: 2025 has been a challenging year for Soitec, marked by declining revenues, withdrawn guidance, and negative analyst sentiment. The company is navigating a difficult market environment and restructuring its product portfolio, leading to significant investor concern.

What It Means for Investors: The consistent negative news and declining financial performance suggest a high-risk investment. The withdrawn guidance and analyst downgrades raise serious questions about the company’s near-term prospects and potential for recovery.

Looking Ahead: Investors should closely monitor the Q2 2026 earnings release on November 18, 2025, for any signs of stabilization or a clear strategy to address the declining revenue and market uncertainties. The success of the company’s transition away from Imager-SOI will be critical.

The Bottom Line: Soitec’s investment case is increasingly precarious. The combination of declining revenues, withdrawn guidance, and negative market conditions creates a challenging environment for investors, and a turnaround is far from guaranteed.