Oddo BHF's warning on annual results sends Soitec (SOI) shares lower
Oddo BHF's warning of disappointing annual results for Soitec sent the French semiconductor materials specialist's shares down 5.1% to €167.35 on May 26, 2026. This movement marks a significant reversal for the company.
The analyst firm maintained its "neutral" recommendation on Soitec on May 25, 2026, but highlighted a projected net loss for fiscal year 2026, which would mark the first such deficit in a decade. This forecast stems from substantial destocking by RF-SOI customers, a subdued automotive market, and underutilised production capacity. Soitec is scheduled to release its annual results on May 27, 2026, with analysts anticipating a net loss per share and revised-down revenue guidance.
Today's decline reverses some gains recorded last week, notably after Morgan Stanley raised its price target for Soitec on May 21, 2026. The stock is currently trading well below its €176.30 close on May 25, 2026.
Why an analyst expects Soitec's decade of profit to end
Soitec is a French technology company that sits at a crucial point in the semiconductor supply chain. They create highly specialised, ultra-thin silicon wafers, known as substrate materials, which serve as the foundational layer for advanced electronic chips. These innovative materials are essential for high-performance components found in everything from smartphone radiofrequency modules to electric vehicles and Internet of Things devices. Soitec earns its revenue by supplying these critical substrates to chip manufacturers globally.
Today's share price movement for Soitec stems from a significant warning issued by financial analyst Oddo BHF regarding the company's upcoming annual results for 2026. While maintaining a "neutral" recommendation, the analyst projected that Soitec would record a net loss for the fiscal year. This would mark the first time in a decade that the company has not turned a profit, primarily driven by a substantial destocking effort from customers in the radiofrequency (RF-SOI) segment, alongside a weakening automotive market and underutilised production capacity.
This unexpected forecast of declining profitability has directly impacted investor sentiment. Consequently, Soitec's shares are trading down 5.1% this 26 May 2026, currently at €167.35, a notable drop from yesterday's closing price of €176.30.
Imagine a highly successful bespoke parts manufacturer that has consistently delivered profits for years, with a steady stream of orders. Suddenly, its biggest customers, who had built up large inventories of these unique parts, drastically reduce their orders to use what they already have. This sudden drop in demand, coupled with a slowdown in another key market, means the manufacturer's factories are running below capacity, leading experts to predict a rare year of losses. This shift from consistent profitability to anticipated loss is what has unsettled investors.
Soitec
Soitec S.A. (SOI) is a French semiconductor company that engineers and produces advanced materials for microelectronics. Its specialised silicon-on-insulator (SOI) wafers are integral to manufacturing chips found in a wide array of devices, from smartphones, tablets, and computers to IT servers, data centres, and automotive electronics. The company’s product portfolio includes Fully Depleted Silicon-On-Insulator (FD-SOI) for automotive radar and processors, alongside PD-SOI and FinFET-SOI for high-performance computing. Soitec also supplies RF-SOI substrates for 4G LTE and 5G sub-6 GHz/mmWave smartphone front-end modules, and power-SOI products for integrating high and low voltage functions in automotive and industrial power ICs. Further offerings include Smart Photonics-SOI for optical networking, Smart Imager-SOI for 3D image sensing, Auto Smartsic for green mobility, Connect RF-GaN for 5G infrastructure, and Gallium Nitride (GAN) Epitaxial wafers for energy-efficient power management. Established in 1992, Soitec S.A. is headquartered in Bernin, France.