Microchip Technology Incorporated reported net sales of $970.5 million for the fourth quarter of fiscal 2025, exceeding analyst consensus estimates of $962.8 million, despite a 26.8% year-over-year decline. The company posted a GAAP net loss of $154.6 million, or $0.29 per diluted share, while non-GAAP net income was $0.11 per diluted share, in line with estimates.
For the first time in almost three years, Microchip achieved a book-to-bill ratio greater than one, and bookings in April surpassed the levels of any single month in the quarter. CEO Steve Sanghi stated that the March 2025 quarter marked the revenue bottom, anticipating a return to sequential growth in the June 2025 quarter.
Microchip provided an optimistic outlook for the first quarter of fiscal 2026, forecasting net sales between $1.02 billion and $1.07 billion, which is above expectations. Capital expenditures for fiscal 2026 are expected to be at or below $100 million, leveraging existing inventory and underutilized capacity to support the initial phases of the next up cycle.
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