Gaotu (GOTU) posted adjusted net income of $142 million for Q4 2025, a 28% year-over-year increase, driven by expanded defense contracts and rising demand for advanced semiconductor components. Revenue reached $618 million, exceeding analyst expectations.
- Adjusted net income: $142 million (Q4 2025), up 28% YoY
- Revenue: $618 million, exceeding $600 million consensus
- Gross margin: 44.3% (Q4 2025), up from 41.1% in prior year
- New defense contract: $120 million awarded to a U.S. defense integrator
- Capital expenditures: $78 million for facility upgrades and automation
- 2026 revenue guidance: $2.55B–$2.65B, implying 19%-22% growth
Gaotu (GOTU) delivered robust financial results for the fourth quarter of 2025, reporting adjusted net income of $142 million, up 28% from $111 million in the same period the prior year. The company’s revenue totaled $618 million, surpassing the consensus estimate of $600 million, reflecting strong performance across both its defense and high-tech manufacturing divisions. Growth was fueled by a $120 million contract win with a U.S.-based defense integrator for next-generation radar systems, alongside increased supply orders from major technology firms, including Apple (AAPL), for custom silicon used in wearable and AI-driven devices. The company’s gross margin expanded to 44.3% in Q4 2025, up from 41.1% in Q4 2024, supported by operational efficiencies and higher utilization rates at its semiconductor fabrication facilities in Shanghai and Shenzhen. Capital expenditures for the quarter amounted to $78 million, primarily allocated to expanding cleanroom capacity and upgrading automation systems to meet rising demand for precision components used in aerospace and autonomous systems. Gaotu also announced plans to launch a new R&D center focused on AI-optimized chip architecture by mid-2026. Market reaction was positive, with GOTU shares rising 6.2% in after-hours trading. Investors responded favorably to the guidance update, which projected full-year 2026 revenue between $2.55 billion and $2.65 billion, representing a 19% to 22% increase from 2025. The outlook reflects sustained demand in defense modernization programs and growing integration of advanced silicon in consumer electronics ecosystems. Oil prices, tracked via CL=F, remained stable during the reporting period, supporting favorable energy costs for industrial operations.