NASDAQ$MCHP

Microchip Technology Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Microchip Technology reported Q3 FY25 revenue of $1.026 billion, a 41.9% YoY decline. GAAP net loss was $53.6 million, while non-GAAP net income was $107.3 million. Adjusted EPS was $0.20, missing guidance. Operating income under GAAP was $30.9 million, with a 3.0% margin, while non-GAAP operating income stood at $210.7 million with a 20.5% margin.

Headline financials

Total Revenue

$1.03B

Previous: $1.77B-41.9%
EPS (adj)

$0.20

Previous: $0.77-74.0%
GAAP Gross Margin

54.7%

Previous: 63.4%-13.7%
Non-GAAP Gross Margin

55.4%

No prior period
GAAP Operating Margin

3.0%

Previous: 30.0%-90.0%
Non-GAAP Operating Margin

20.5%

No prior period
Non-GAAP Net Margin

10.5%

No prior period
Capital Expenditures

-$112M

Previous: -$245M+54.4%
Net Income

-$53.6M

Previous: $419M-112.8%
Operating Income

$30.9M

Previous: $529M-94.2%
Gross Profit

$561M

Previous: $1.12B-49.9%
R&D Expense

$246M

Previous: $266M-7.4%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.03B

Q3 2025-41.9%vs Q3 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Microchip expects Q4 FY25 revenue between $920 million and $1 billion, with continued weakness due to inventory corrections but signs of improvement in bookings.

Tailwinds

  • Q4 bookings running at a higher rate than Q3.
  • Operational restructuring efforts underway.
  • Investment in AI and security solutions for future growth.
  • Disciplined capital management with reduced CapEx.
  • Commitment to shareholder returns with increased dividends.

Headwinds

  • Ongoing customer inventory destocking.
  • Revenue guidance indicates another quarter of decline.
  • Operating expenses remain elevated.
  • Profitability below historical levels.
  • Macroeconomic uncertainties impacting demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+0.9%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+3.3%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+11.2%

Q3 2020

Best reaction

-15.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.1%-2.3%-0.4%
Q3 2026-2.6%+3.5%-17.0%
Q2 2026-5.2%-6.3%+10.9%
Q1 2026-6.7%-0.7%-0.5%
Q4 2025-1.0%-5.2%+11.4%
Q3 2025-2.3%+1.4%+12.5%
Q2 2025-1.0%-2.1%-21.8%
Q1 2025-15.0%-15.9%-7.5%
Q4 2024+0.8%+0.2%+3.2%
Q3 2024-1.0%-2.3%+2.1%
Q2 2024+7.6%+6.0%+19.2%
Q1 2024-7.5%-6.4%-8.8%
Q4 2023-1.4%-4.6%+1.2%
Q3 2023+5.2%+6.6%+1.8%
Q2 2023+5.3%+11.7%+27.5%
Q1 2023+5.9%+3.3%-6.1%
Q4 2022+1.0%-0.8%+2.0%
Q3 2022-7.4%-4.6%-14.3%
Q2 2022+7.5%+3.9%+6.9%
Q1 2022+1.7%+3.3%+7.8%
Q4 2021+2.8%-0.1%+6.7%
Q3 2021+4.0%+8.7%+4.0%
Q2 2021+10.6%+7.6%+27.3%
Q1 2021-6.1%-5.6%+3.9%
Q4 2020+7.1%+2.7%+31.3%
Q3 2020+11.2%+8.9%-9.1%
Q2 2020-4.2%-3.6%-3.1%
Q1 2020+5.7%+5.1%+6.2%
Q4 2019-5.1%-11.2%-11.1%
Q3 2019+8.2%+5.8%+2.3%
Q2 2019+6.3%-0.5%+0.3%
Q1 2019-10.6%-14.0%-15.0%
Q4 2018+3.5%+4.7%+15.2%
Q3 2018-7.4%-9.5%+6.5%
Q2 2018-2.4%-2.2%-7.8%
Q1 2018+4.6%+6.0%+10.1%
Q4 2017+4.1%+4.7%+15.1%
Q3 2017+6.7%+2.5%+6.2%
Q2 2017+6.2%+4.9%+7.1%
Q1 2017+7.2%+7.0%+7.5%
Q4 2016-2.0%
Q3 2016-1.0%
Q2 2016-1.8%
Q1 2016-0.1%
Q4 2015+4.0%
Q3 2015-1.4%
Q2 2015+2.1%
Q1 2015-0.5%
Q4 2014+0.3%
Q3 2014+0.5%
Q2 2014+6.6%
Q1 2014+6.2%
Q4 2013+4.0%
Q3 2013+5.6%
Q2 2013-4.7%
Q1 2013+3.3%
Q4 2011-1.1%
Q4 2012-1.5%
Q3 2012+2.3%
Q2 2012+6.9%
Q1 2012-5.7%
Q3 2011-0.6%
Q4 2009-0.4%
Q2 2011-0.4%
Q1 2011+0.1%
Q4 2008+3.2%
Q4 2010+3.2%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010+2.8%
Q1 2009-0.4%
Q2 2009-0.4%
Q1 2010-0.4%

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