Recovery Plan Execution ProgressingCHANDLER, Ariz., Jan. 05, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) - Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today commented that it expects its net sales for third quarter of fiscal 2026 ended December 31, 2025 to be about $1,185 million, well above its original guidance of $1,109 million to $1,149 million provided on November 6, 2025, and its subsequent revised guidance provided on December 2, 2025 ...

Core Insights - The industry anticipated a recovery in the analog space for 2025, which did not materialize as expected [1] Company Performance - The current quarter's performance aligns with the company's expectations, with some elements performing even better than anticipated [1] - The first half of 2025 was significantly impacted by an inventory correction in the automotive and industrial sectors [1] - Major automotive customers underwent substantial inventory corrections in the first part of the year, but this issue has now been resolved [1] - Growth began in Q2, indicating a positive trend moving forward [1]

Core Insights - The company has acknowledged a previous prediction regarding the weakening of the industrial sector, which has proven to be accurate [1] - There is a sense of optimism regarding the near-term outlook, with expectations of improvement in the following year [1] Inventory Correction Overview - The discussion revolves around the inventory correction process and its current status, indicating that the worst phase may have passed [1] - The company is seeking to provide insights into the effects of the inventory correction on the industry and its trajectory moving forward [1]

Core Insights - The company reported a strong earnings performance and provided guidance above seasonal expectations for the January quarter [1] - The company believes it has reached the bottom of its inventory correction cycle and anticipates sequential growth in the latter half of fiscal year 2024, with further growth expected in 2025 [1] - A broad-based recovery has been observed across various end markets, indicating a significant rebound from previous lows [1] Financial Performance - The company indicated that it expects to see more growth in the second half of fiscal year 2024, with a significant acceleration anticipated [1] - The recovery trajectory aligns with the company's previous statements made in Q2 of fiscal year 2024 regarding market conditions and inventory levels [1] Market Segments - The company is experiencing a recovery across multiple key segments, which is crucial for its performance relative to peers [1] - The description of end markets suggests a comprehensive improvement, highlighting the company's competitive positioning in the industry [1]

Core Insights - Marvell Technology, Inc. reported stronger-than-expected fourth-quarter results for fiscal 2025, with non-GAAP earnings of 60 cents per share, exceeding the Zacks Consensus Estimate by 1.7% [1][2] - The company’s fourth-quarter revenues reached $1.82 billion, surpassing the Zacks Consensus Estimate by 0.7% and reflecting a 27% year-over-year growth [3] Financial Performance - Fourth-quarter non-GAAP earnings increased by 30% year over year and 40% sequentially, driven by higher revenues and effective cost management [2] - Non-GAAP gross profit for the fourth quarter was $1.09 billion, a 19.9% increase year over year, although the non-GAAP gross margin contracted to 63.9% [11] - Non-GAAP operating expenses totaled $479.4 million, up from $428.5 million in the previous year, with a non-GAAP operating margin of 33.7% [12] Revenue Breakdown - Data center revenues were $1.37 billion, marking a 78% year-over-year increase and accounting for 75% of total revenues [6] - Enterprise networking revenues dropped 35% year over year to $171 million, while carrier infrastructure revenues fell 38% to $106 million [7][8] - Automotive/Industrial revenues increased 4% year over year to $86 million, while consumer revenues decreased 38% to $85.7 million [9][10] Shareholder Returns - In the fourth quarter, Marvell returned $251.9 million to shareholders through stock repurchases and dividends, with a total of $725 million in share buybacks for the fiscal year [14] Future Guidance - For the first quarter of fiscal 2026, Marvell expects revenues of $1.875 billion, with a non-GAAP gross margin projected at 60% [15] - The company anticipates non-GAAP earnings per share of 61 cents, reflecting a year-over-year improvement of 145.8% [16]