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.

Total Revenue

$1.03B

Previous year: $1.77B

-41.9%

EPS

$0.2

Previous year: $1.08

-81.5%

Operating Margin

Previous year: 30%

-90.0%

Gross Margin

54.7%

Previous year: 63.4%

-13.7%

Dividends Paid

$245M

Gross Profit

$561M

Previous year: $1.12B

-49.9%

Cash and Equivalents

$586M

Previous year: $281M

+108.5%

Free Cash Flow

$253M

Previous year: $794M

-68.1%

Total Assets

$15.6B

Previous year: $16.1B

-3.2%

Microchip Revenue

Microchip EPS

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.