Microchip Technology ( (MCHP) ) has released its Q4 earnings. Here is a breakdown of the information Microchip Technology presented to its investors.
Microchip Technology Incorporated is a leading provider of smart, connected, and secure embedded control solutions, serving various markets including industrial, automotive, consumer, aerospace, defense, communications, and computing. Headquartered in Chandler, Arizona, the company is known for its comprehensive product portfolio and outstanding technical support.
In its latest earnings report for the fourth quarter and fiscal year 2025, Microchip Technology reported net sales of $970.5 million for the quarter, a decline of 5.4% sequentially and 26.8% from the same quarter last year. For the fiscal year, net sales were $4.402 billion, marking a 42.3% decrease from the previous year.
Key financial metrics revealed a GAAP net loss attributable to common stockholders of $156.8 million for the quarter, translating to a loss of $0.29 per diluted share. On a non-GAAP basis, the company reported a net income of $61.4 million, or $0.11 per diluted share. The company also returned approximately $244.8 million to stockholders through dividends in the March quarter and declared a quarterly dividend of 45.5 cents per share for the June quarter.
Microchip’s management highlighted strategic initiatives aimed at enhancing operational capabilities and improving inventory management. The company reduced its inventory dollars by $62.8 million and decreased distribution inventory days. Financial actions included reducing total net debt by approximately $1.30 billion and amending its revolving line of credit for better terms.
Looking ahead, Microchip expects net sales for the June 2025 quarter to be between $1.02 billion and $1.07 billion. The company remains focused on translating business momentum into shareholder value while maintaining its dividend commitment as it anticipates a return to growth.