Microchip Technology Reports Q4 Loss, Guides Modest Growth

Microchip Technology Inc. reports a Q4 loss with EPS of -$0.29, slightly below expectations, while revenue falls sharply to $0.970 billion. Future guidance, however, shows potential recovery, offering a glimmer of hope for investors.

Date: 09-05-2025

AI Rating: 5

Overview of Earnings Results: Microchip Technology Inc. reported a net loss of -$156.8 million in Q4, contrasting to a small profit of $154.7 million during the same period last year. The EPS was recorded at -$0.29, which marginally underperformed compared to -$0.28 from the year prior. On an adjusted basis, however, the earnings show signs of recovery, with an earning of $61.4 million or $0.11 per share, slightly surpassing analysts' projections of $0.10 per share.

Revenue Insights: The company generated revenues of $0.970 billion in Q4, a significant decline from $1.325 billion year-over-year. This sharp drop raises concerns about the company's market position and ability to adapt to shift in demand.

Future Guidance: The next quarter's EPS guidance ranges from $0.18 to $0.26 and revenue guidance is set between $1.020 billion and $1.070 billion. This suggests that although the recent performance was disappointing, there is a forecasted improvement on the horizon which could stabilize stock prices moving forward.

Key Metrics: Although the company experienced net losses and lower revenue, the adjusted earnings indicated a slight potential for a rebound. Investors might view the upcoming guidance as a signal of management's effort to stabilize and even grow in the future. However, caution is warranted due to the prior losses.

Stocks: MCHP