Microchip Technology (NASDAQ:MCHP) Surpasses Q4 Revenue Outlook

Microchip Technology (NASDAQ:MCHP) posted Q4 CY2025 revenue of $1.19 billion, 15.6% YoY and 6.2% over guidance, and non-GAAP profit of $0.44 per share, 2.7% above consensus. The midpoint of guidance for Q1 CY2026 is $1.26 billion, 2.4% above estimates, with sequential sales up 4% and operating profit growth outpacing sales. February 5, 2026 results reflect a 29.8% YoY sales growth outlook for Q1, supported by a broad market recovery and margin expansion. Days in inventory rose to 201, 25 days above the five-year average, indicating higher inventory levels. Shares closed 4% lower at $75.03. Context: A provider of microcontrollers and integrated circuits, the company serves automotive and EV charging applications. While recent performance suggests a 28.5% annualized revenue decline over the past two years, the latest quarter marks a positive inflection point with strong top- and bottom-line outperformance.