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Dec 31, 2024
Microchip Q3 2025 Earnings Report
Key Takeaways
Microchip Technology reported Q3 FY25 revenue of $1.026 billion, a 41.9% YoY decline. GAAP net loss was $53.6 million, while non-GAAP net income was $107.3 million. Adjusted EPS was $0.20, missing guidance. Operating income under GAAP was $30.9 million, with a 3.0% margin, while non-GAAP operating income stood at $210.7 million with a 20.5% margin.
Forward Guidance
Microchip expects Q4 FY25 revenue between $920 million and $1 billion, with continued weakness due to inventory corrections but signs of improvement in bookings.
Positive Outlook
- Q4 bookings running at a higher rate than Q3.
- Operational restructuring efforts underway.
- Investment in AI and security solutions for future growth.
- Disciplined capital management with reduced CapEx.
- Commitment to shareholder returns with increased dividends.
Challenges Ahead
- Ongoing customer inventory destocking.
- Revenue guidance indicates another quarter of decline.
- Operating expenses remain elevated.
- Profitability below historical levels.
- Macroeconomic uncertainties impacting demand.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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