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Microchip Q4 2025 Earnings Report
Microchip Technology Incorporated reported its financial results for the fourth quarter and fiscal year ended March 31, 2025, with net sales declining sequentially and year-over-year, but exceeding guidance midpoint. The company also reported a GAAP operating loss and net loss, while non-GAAP results showed positive operating income and net income.
Key Takeaways
Microchip Technology reported Q4 2025 net sales of $970.5 million, a 5.4% sequential and 26.8% year-over-year decrease, but still above the guidance midpoint. The company experienced a GAAP net loss of $156.8 million and a non-GAAP net income of $61.4 million. For the full fiscal year 2025, net sales were $4.402 billion, a 42.3% decrease from the prior year.
Net sales for Q4 2025 were $970.5 million, exceeding the midpoint of the company's guidance.
The company reported a GAAP net loss of $156.8 million, or $0.29 per diluted share, for Q4 2025.
Non-GAAP net income for Q4 2025 was $61.4 million, or $0.11 per diluted share.
Microchip returned approximately $244.8 million to stockholders through dividends in the March quarter.
Microchip
Microchip
Forward Guidance
Microchip expects net sales for the June 2025 quarter to be between $1.02 billion and $1.07 billion, with GAAP diluted net loss per common share ranging from $(0.15) to $(0.07) and non-GAAP diluted net income per common share from $0.18 to $0.26. Capital expenditures for the quarter are projected between $20 million and $25 million.
Positive Outlook
- Anticipated net sales for the June 2025 quarter are expected to increase, ranging from $1.02 billion to $1.07 billion.
- Non-GAAP diluted net income per common share is projected to be positive, between $0.18 and $0.26.
- The company expects to achieve its first positive book-to-bill ratio in nearly three years, indicating an inflection point.
- Bookings in April were higher than any month in the March quarter, showing positive momentum.
- Capital expenditures for fiscal year 2026 are expected to be at or below $100 million, indicating controlled spending.
Challenges Ahead
- GAAP diluted net loss per common share is still projected for the June 2025 quarter, ranging from $(0.15) to $(0.07).
- The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter.
- The GAAP guidance excludes the impact of any potential charges related to ongoing restructuring activities.
- Geopolitical concerns and the non-quantifiable impact of tariffs could affect actual results.
- The company is not able to estimate certain Special Charges and Other, net that may be incurred during the quarter ending June 30, 2025.