Overview
- Net sales reached $1.140 billion for the quarter ended Sept. 30, up 6% sequentially and down 2% year over year, with non-GAAP EPS of $0.35 topping forecasts.
- December-quarter guidance called for $1.129 billion in revenue plus or minus $20 million and non-GAAP EPS of $0.34 to $0.40, with GAAP outcomes ranging from a small loss to a small profit, and the stock fell about 3% after hours and extended losses Friday.
- JP Morgan’s Harlan Sur reiterated an Overweight rating and a $77 price target, citing deferred customer restocking until early 2026 but visibility for sequential growth by the March quarter.
- Bookings improved through the quarter, with October demand exceeding September and August, while gross margin was 56.7% despite an approximately 11-point drag from inventory write-downs and underutilization.
- Operational levers include raising fab utilization and completing the planned sale of Fab 2 by December 2025, as the company also launched an MCP Server to supply verified product data to AI tools and declared a $0.455 quarterly dividend.