Raspberry Pi profit triples on hot demand

Raspberry Pi's profit more than tripled in the first half of 2026 as demand for its affordable computers soared and prices increased. The Cambridge-based firm reported a pre-tax profit of $19.6m, up from $6.2m a year prior, while revenue jumped 90% to $256.9m. Chief executive Eben Upton noted strong interest from corporate customers and resellers, with the company's order backlog having doubled to 2.6m units.

Upton explained that securing strategic memory inventory after a 2025 decision allowed them to maintain product availability amid competition. The results followed British chip giant Arm's recent investment of £50m in a share sale by Raspberry Pi Foundation, which increased Arm's stake from 8.4% to 13.1%. Together, the two companies have collaborated since 2008, with Raspberry Pi's computers built using Arm technology.

Raspberry Pi sold 4.2m units during the period, a 17% year-on-year increase, while direct sales rose 26% to 3.4m. The company anticipates full-year earnings to beat market forecasts, with stronger-than-expected demand expected to drive unit sales in the second half. This growth stems from businesses and hobbyists using Raspberry Pi's computers, including for AI applications running locally.

The average selling price of its boards rose 42% to $65.90 due to higher memory costs, while direct sales of Pi 4 and Pi 5 computers grew 69% and 47% respectively. A global memory shortage has driven component prices higher, but Raspberry Pi built up memory supplies last year to protect its profitability. The company now has $262.7m in memory inventory, up $117.4m during the half, and expects to continue using its borrowing facilities to secure components for future production.