Microchip Technology (MCHP) reported Q4 CY2025 results that exceeded revenue and EPS expectations, driven by strong growth in automotive and industrial Ethernet solutions, networking, data center, and FPGA product lines. The company provided optimistic Q1 CY2026 guidance, expecting continued momentum in these areas and a significant improvement in inventory correction across distribution channels. Management also highlighted a focus on margin expansion through product mix optimization and normalization of factory utilization, alongside a strategy to prioritize debt reduction.
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MCHP Q4 Deep Dive: Automotive and Industrial Ethernet Drive Outlook Amid Inventory Recovery
Microchip Technology (MCHP) reported Q4 CY2025 results that exceeded revenue and EPS expectations, driven by strong growth in automotive and industrial Ethernet solutions, networking, data center, and FPGA product lines. The company provided optimistic Q1 CY2026 guidance, expecting continued momentum in these areas and a significant improvement in inventory correction across distribution channels. Management also highlighted a focus on margin expansion through product mix optimization and normalization of factory utilization, alongside a strategy to prioritize debt reduction.