Microchip (MCHP) Q4 Results: 15.6% Revenue Surge, $1.19B, Outperforming Guidance

Microchip Technology (NASDAQ:MCHP) released Q4 CY2025 results exceeding expectations, with revenue up 15.6% YoY to $1.19 billion. Non-GAAP profit of $0.44 per share and Q1 guidance of $1.26 billion at the midpoint outpaced analyst estimates by 2.4% and 2.7%, respectively. The outperformance was driven by modernization in automotive and industrial Ethernet, continued strength in networking and data center products, and normalization of distributor inventories. Auto and industrial Ethernet design wins, aerospace and defense demand, and lengthening lead times for certain products indicate tightening supply and improving gross margins. Looking ahead, the company expects continued momentum in connectivity solutions and higher-margin product mix, with backlog growth and factory utilization normalization supporting margin expansion.