Companies /Technology

Microchip Technology Inc

NASDAQ: MCHP Semiconductors
$75.49
â–² $1.44 (+1.94%) today
Markets closed · 12:46am ET

Q2 2026 Earnings

Reported Nov 6, 2025, 4:21pm ET · SEC source
$0.35
Beat +4.92%
EPS · est. $0.33
$1.1B
Beat +0.68%
Revenue · est. $1.1B
+18.2%
Beating market
MCHP vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Nov 6Nov 7report 4:21pm ETearnings+0.1%+0.6%
−4%0+4%+8%Nov 6Nov 7earnings+0.1%+0.6%
MCHP +0.6%S&P 500 +0.1%
−4%0+4%+8%Nov 6Nov 7report 4:21pm ETearnings−0.1%+0.6%
−4%0+4%+8%Nov 6Nov 7earnings−0.1%+0.6%
MCHP +0.6%NASDAQ −0.1%
−5%0+5%+10%Nov 5Nov 14report 4:21pm ETearnings+0.1%−4.1%
−5%0+5%+10%Nov 5Nov 14earnings+0.1%−4.1%
MCHP −4.1%S&P 500 +0.1%
−5%0+5%+10%Nov 5Nov 14report 4:21pm ETearnings−0.5%−4.1%
−5%0+5%+10%Nov 5Nov 14earnings−0.5%−4.1%
MCHP −4.1%NASDAQ −0.5%
−5.17%
Day of report
−1.55%
Next session
−4.98%
One week
+20.65%
30 days

S&P 500 over the same 30 days: +2.47%.

Did MCHP Beat Earnings? Q2 2026 Results

Microchip Technology posted a modest but clean beat for its fiscal second quarter of 2026, with non-GAAP earnings of $0.35 per share edging past the $0.33 consensus estimate by 4.92% and revenue of $1.14 billion coming in ahead of the $1.13 billion analyst expectation. The top line declined 2.0% year-over-year but reflected a 6.0% sequential rebound, a signal that the company's prolonged inventory correction may finally be turning. The key driver behind the in-line sequential recovery was a strengthening order environment: September quarter bookings grew 10% sequentially with a book-to-bill ratio of 1.06, and customer requests for expedited shipments picked up notably, suggesting channel destocking is progressing. Margin pressure remained a headwind, however, with non-GAAP gross margins compressing to 56.7% from 59.5% a year ago amid elevated operating expenses. Analysts have flagged continued softness in automotive and industrial end markets as a near-term concern. Looking ahead, Microchip guided fiscal Q3 2026 revenue to a midpoint of $1.13 billion, with non-GAAP EPS of $0.34 to $0.40.

Key Takeaways
  • 6.0% sequential net sales growth above guidance midpoint
  • September quarter bookings grew 10% sequentially with book-to-bill ratio of 1.06
  • Increased customer requests for expedited shipments indicating inventory normalization
  • Robust momentum in data center applications as customers re-engage following inventory corrections
  • Accelerating global aerospace and defense spending driving demand for integrated solutions
  • Disciplined cost management and improved operational efficiency

“Our second quarter results demonstrate continued momentum in our recovery, with net sales of $1.140 billion growing 6% sequentially and above the midpoint of our guidance. The operational improvements we have implemented are translating into meaningful financial progress despite the broader market recovery developing more gradually than anticipated. We believe our operational capabilities position us to outperform as conditions improve.”

Microchip Technology CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026 (December 2025 quarter), Microchip guides net sales of $1.109 billion to $1.149 billion (midpoint $1.129 billion). Non-GAAP EPS is expected at $0.34 to $0.40, and GAAP diluted EPS is guided at a loss of $0.02 to income of $0.02. Non-GAAP gross profit margins are expected at 57.2% to 59.2%. Capital expenditures for the December quarter are expected between $15 million and $25 million, with full fiscal year 2026 capex at or below $100 million. The company has paused most factory expansion actions and reduced planned capital investments consistent with the slow macroeconomic environment, though it is selectively adding production capacity and R&D equipment. September quarter bookings grew 10% sequentially with a book-to-bill ratio of 1.06, and expedited shipment requests increased significantly, indicating inventory normalization is progressing.

MCHP YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$400.0M$800.0M$1.2B$1.2B$1.1BRevenue$668.5M$637.9MGross Profit$146.6M$88.9MOperating Income$78.4M$41.7MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.