UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 0-21184 MICROCHIP TECHNOLOGY INCORPORATED (Exact Name of Registrant as Specified in Its Charter) (State or Oth ...

EXHIBIT 99.1 INVESTOR RELATIONS CONTACT: Sajid Daudi -- Head of Investor Relations..... (480) 792-7385 MICROCHIP TECHNOLOGY ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER OF FISCAL YEAR 2026 For the quarter ended June 30, 2025 CHANDLER, Arizona - August 7, 2025 - (NASDAQ: MCHP) - Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today reported results for the three months ended June 30, 2025. Steve Sanghi, Microchip's CEO and President commented ...

Core Viewpoint - Microchip Technology Incorporated reported strong sequential revenue growth of 10.8% to approximately $1.0755 billion for the quarter ended June 30, 2025, indicating a positive trend as the company emerges from an industry downturn [2][4]. Financial Performance - Net sales for the quarter were $1.0755 billion, a 10.8% increase sequentially but a 13.4% decline year-over-year from $1.241 billion [4][6]. - On a GAAP basis, the gross profit was 53.6%, with an operating income of $32.1 million, representing 3.0% of net sales, and a net loss attributable to common stockholders of $46.4 million, or a loss of $0.09 per diluted share [4][7]. - Non-GAAP results showed a gross profit of 54.3%, operating income of $222.3 million (20.7% of net sales), and net income of $154.7 million, translating to an EPS of $0.27 per diluted share [4][8]. Inventory Management - The company achieved a significant inventory reduction of $124.4 million during the June quarter, with distribution inventory days decreasing by 4 days to 29 days and overall inventory days on the balance sheet declining to 214 days [2][4]. Strategic Initiatives - Microchip's Total System Solutions strategy is securing design wins with tier-one cloud providers for AI infrastructure and defense applications, aligning with global defense spending trends [2][4]. - The company anticipates September quarter net sales of approximately $1.130 billion, representing about 5.1% sequential growth at the midpoint, supported by a backlog running ahead of June quarter levels [2][4]. Dividend and Shareholder Returns - Approximately $245.5 million was returned to common stockholders through dividends in the June quarter, with a quarterly dividend of 45.5 cents per share declared for the September quarter [4][9]. Future Outlook - The company expects continued operational leverage to support sustained margin expansion and enhanced cash flow generation as demand conditions improve [2][4]. - Capital expenditures for the quarter ending September 30, 2025, are projected to be between $35 million and $40 million, with total capital expenditures for fiscal 2026 expected to be at or below $100 million [15].

Core Insights - Microchip Technology (MCHP) is expected to report its first-quarter fiscal 2026 results on August 7, with anticipated net sales between $1.02 billion and $1.07 billion, and non-GAAP earnings projected between 18 cents and 26 cents per share [1][7] - The Zacks Consensus Estimate for revenues in the first quarter of fiscal 2026 is $1.05 billion, reflecting a 15.1% decline compared to the same quarter last year [1][2] Revenue and Earnings Expectations - The consensus estimate for fiscal first-quarter earnings is set at 24 cents per share, indicating a year-over-year decline of 54.7% [2] - Microchip has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average negative earnings surprise of 2.42% [2] Inventory and Margin Insights - The company has been facing macroeconomic challenges, but improving inventory levels are expected to positively impact gross margins, with inventory days projected to decrease to between 215 and 225 by the end of the fiscal first quarter [3][4][7] - The previous quarter's inventory levels reached 251 days, an increase of 15 days sequentially [3] Sector Performance and Innovations - Microchip is benefiting from strong design wins in the industrial, aerospace, and automotive sectors, with innovations such as 64-bit RISC-V processors and advanced Wi-Fi solutions contributing to revenue growth [5] - The company's focus on high-growth areas like aerospace, defense, and AI is expected to enhance adoption across automotive, industrial, and AI/ML markets, further boosting revenues [5] Earnings Prediction Model - According to the Zacks model, Microchip has an Earnings ESP of -0.19% and a Zacks Rank of 2, indicating a lower likelihood of an earnings beat compared to other stocks with a positive Earnings ESP [6]

Industry Overview - The semiconductor industry has rebounded significantly, driven by strong sales and increased investment in artificial intelligence (AI) by major companies [1][2] - Robust demand across various sectors has led to a notable increase in chipmakers' revenues, contributing to overall market gains and the tech rally [2] Sales Performance - Global semiconductor sales reached $179.7 billion in Q2 2025, marking a 7.8% increase from Q1 2025 and a 19.6% rise year-over-year from $50.1 billion in June 2024 [4][5] - The semiconductor market is projected to continue growing, with strong performance in the Asia Pacific and Americas regions [5] Revenue Growth - In 2024, global semiconductor revenues were $627.6 billion, a 19.1% increase from $526.8 billion in 2023 [6] - The first quarter of 2025 generated $167.7 billion in revenues, reflecting an 18.8% increase compared to the same period in 2024 [6] Demand Drivers - High demand for data center chips and memory products has been a significant factor in the industry's growth, with expectations of maintaining double-digit growth into 2025 due to ongoing AI investments [7] Investment Opportunities - Recommended semiconductor stocks include RF Industries, Ltd. (RFIL), Monolithic Power Systems, Inc. (MPWR), and Microchip Technology (MCHP), all of which have strong earnings growth and favorable Zacks rankings [3][9] - RFIL is expected to see over 100% earnings growth this year, with a Zacks Rank 1 [10] - MPWR anticipates a 21% earnings growth rate, holding a Zacks Rank 2 [12] - MCHP projects a 5.3% earnings growth rate, also with a Zacks Rank 2 [14]

Core Insights - Microchip Technology has launched the Adaptec® SmartRAID 4300 series of NVMe® RAID storage accelerators aimed at enhancing support for server OEMs, storage systems, data centers, and enterprise customers [1] - The SmartRAID 4300 series offers a high-performance Software-Defined Storage (SDS) solution specifically designed for modern AI data center environments, significantly improving access to NVMe storage [1][2] Product Features - The SmartRAID 4300 family disaggregates Microchip's Smart Storage platform into separate software and hardware components, utilizing PCIe® storage controllers for CPU offload and RAID acceleration [2] - Internal testing has demonstrated up to a 7x increase in input/output (I/O) performance compared to previous generations [2] - The architecture allows for scalability and flexibility, supporting Gen 4 and Gen 5 PCIe host CPUs with up to 32 CPU-attached x4 NVMe devices and 64 logical drives/RAID arrays [3] Efficiency and Security - The solution optimizes power efficiency through techniques such as automatic idling of processor cores and autonomous power reduction capabilities, while maintaining end-to-end data integrity [4] - Security features include hardware root of trust, secure boot/update, attestation, and Self-Encrypting Drive (SED) support for enterprise-class data protection [4] Management Tools - The SmartRAID 4300 series is supported by a suite of management tools, including the Adaptec maxView™ tool with an HTML5-based web GUI, ARCCONF CLI, and compatibility with Adaptec SmartRAID tools for ease of integration [6] Availability - The Adaptec SmartRAID 4300 accelerators are available for production integration, with details obtainable through Microchip sales representatives or authorized distributors [7]

Core Viewpoint - Microchip Technology has introduced the Adaptec SmartRAID 4300 series, a high-performance NVMe RAID storage accelerator designed to enhance data access speeds in modern AI data center environments, addressing traditional storage bottlenecks [1][2]. Product Features - The SmartRAID 4300 series employs a disaggregated architecture, separating software and hardware components to optimize data flows and connectivity, resulting in up to 7x I/O performance gains compared to previous generations [2][3]. - The architecture allows for direct writes from the host CPU to NVMe endpoints, offloading parity-based redundancy to the accelerator hardware, which enhances scalability and flexibility [3][4]. - The accelerators support Gen 4 and Gen 5 PCIe host CPUs, accommodating up to 32 CPU-attached x4 NVMe devices and 64 logical drives/RAID arrays [3]. Security and Efficiency - The SmartRAID 4300 series includes advanced security features such as hardware root of trust, secure boot/update, attestation, and Self-Encrypting Drive (SED) support, ensuring enterprise-class data protection [4]. - Specific design techniques, including automatic idling of processor cores and autonomous power reduction, optimize power efficiency while maintaining data integrity [4]. Management Tools - The series is supported by a suite of management tools, including the Adaptec maxView™ tool, which offers a web GUI for remote and local management, ensuring compatibility with existing Adaptec SmartRAID tools [6]. - Out-of-band management is facilitated through DMTF standards, PLDM, and Redfish® Device Enablement via MCTP protocol [6]. Availability - The Adaptec SmartRAID 4300 accelerators are available for production integration, with details accessible through Microchip sales representatives or authorized distributors [7].

Bearing this in mind, let's now explore the average estimates of specific Microchip Tech metrics that are commonly monitored and projected by Wall Street analysts. Wall Street analysts forecast that Microchip Technology (MCHP) will report quarterly earnings of $0.24 per share in its upcoming release, pointing to a year-over-year decline of 54.7%. It is anticipated that revenues will amount to $1.05 billion, exhibiting a decrease of 15.1% compared to the year-ago quarter. The current level reflects an upward ...

The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This chipmaker ...

Hello readers! Passionate about technology, my focus will be on finding and analyzing companies that can play a relevant role in today's geopolitics, leverage their IP, and eventually, with time, become new leaders. Therefore, the investment style will correspond to growth companies with a bias on the mid-cap segment. The main sectors under study will be biotechnologies, computer chips, cloud technology, energy, and commodities. Special attention will be given to risks surrounding business cases, with a top ...