Microchip Technology
MCHP
$65.81 1.68%
Exchange: NASDAQ | Sector: Technology | Industry: Semiconductors
Q1 2025
Published: Aug 1, 2024

Earnings Highlights

  • Revenue of $1.24B down 45.8% year-over-year
  • EPS of $0.24 decreased by 80.3% from previous year
  • Gross margin of 59.4%
  • Net income of 129.30M
  • "β€œBookings have been growing. They've been growing unevenly between the months. So it's on the right track, just not as fast as we would like it to be.”" - Ganesh Moorthy
MCHP
Company MCHP

Executive Summary

Microchip Technology’s QQ1 2025 results reflect a continuation of the industry-wide inventory correction, with net sales of $1.241 billion down 6.4% sequentially and a steep year-over-year decline driven by macro headwinds and destocking. Management highlighted stabilizing but weak end markets, notably in Europe and the Americas, while identifying green shoots in data center demand and a stable Aerospace & Defense segment. The company maintained a disciplined cost structure and a strong cash-generation engine, enabling meaningful shareholder returns even as leverage remains elevated due to a strategic refinancing activity. The near-term guidance acknowledges continued softness, but management articulated a multi-quarter path to recovery anchored by a growing design-in pipeline and a broadened 8–64 bit embedded processing roadmap. In sum, the quarter underscores a challenging macro backdrop, offset by a proven balance sheet, robust cash flows, and a clear portfolio evolution that could drive above-market growth as the cycle recovers.

Key Performance Indicators

Revenue
Decreasing
1.24B
QoQ: -6.37% | YoY: -45.76%
Gross Profit
Decreasing
736.90M
59.37% margin
QoQ: -6.71% | YoY: -52.71%
Operating Income
Decreasing
219.10M
QoQ: -13.57% | YoY: -75.74%
Net Income
Decreasing
129.30M
QoQ: -16.42% | YoY: -80.60%
EPS
Decreasing
0.24
QoQ: -17.24% | YoY: -80.33%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 1,075.50 -0.09 -13.4% View
Q4 2025 970.50 -0.29 -26.8% View
Q3 2025 1,026.00 -0.10 -41.9% View
Q2 2025 1,163.80 0.14 -48.4% View
Q1 2025 1,241.30 0.24 -45.8% View