Stephen Sanghi on revenue bottom
From Microchip Technology Inc ($MCHP) Q4 2025 Earnings Call · · Castify Earnings Call
“I'm finally calling the last quarter as a revenue bottom for us. Our bookings were up significantly in the March quarter. After nearly 3 years of book-to-bill ratio well below 1.0, our book-to-bill ratio in the March quarter was a very healthy 1.07.”
On , Stephen Sanghi, Chief Executive Officer, President & Chair of the Board at Microchip Technology Inc, spoke about revenue bottom during Microchip Technology Inc ($MCHP) Q4 2025 Earnings Call on Castify Earnings Call.
About Stephen Sanghi
Stephen Sanghi, CEO, President, and Chair of the Board of Microchip Technology, stated during the company’s Q4 fiscal year 2025 earnings call on March 31, 2026, that the company had turned a corner, calling the last quarter a revenue bottom. He reported that bookings increased significantly in the March quarter and that the company’s book-to-bill ratio reached 1.07 after nearly three years below 1.0. Sanghi said the company aims to reduce inventory by over $350 million to free up cash, and he noted that the company is not considering any cut to the dividend. Sanghi also discussed the impact of tariffs, stating that current rules are incentivizing moving product out of the U.S., contrary to their intended purpose, and that Microchip is moving mask sets from the U.S. to Taiwan to avoid tariffs on shipments to China. He expressed optimism about the September quarter, noting that September backlog is higher than the June quarter backlog was at the same point in time.