Microchip Technology (NASDAQ: MCHP) shares surged 5.82% in after-hours trading on Thursday following the release of its fourth-quarter fiscal 2025 financial results. The semiconductor company reported better-than-expected revenue and provided an optimistic outlook on future bookings.

For the quarter ended March 31, 2025, Microchip Technology reported sales of $970.5 million, surpassing analysts' estimates of $962.8 million. While this represents a 26.81% decrease from the same period last year, it still managed to beat market expectations. The company's adjusted earnings per share came in at $0.11, in line with consensus estimates.

Investors were particularly encouraged by Microchip's forward-looking statements. The company announced that its bookings in April were higher than any month in the March quarter, signaling a potential turnaround in demand. Additionally, Microchip provided Q1 fiscal 2026 guidance, projecting revenue between $1.02 billion and $1.07 billion and adjusted EPS in the range of $0.18 to $0.26. This outlook suggests a sequential improvement in the company's performance.

The positive reception of Microchip's earnings report comes amid ongoing challenges in the semiconductor industry, particularly in the automotive sector. The company's ability to exceed revenue expectations and provide an optimistic outlook for future bookings has instilled confidence in investors, driving the stock's after-hours rally.