MICROCHIP TECHNOLOGY (MCHP) Company Report

Full qualification and production release of SST’s embedded SuperFlash Gen 4 (ESF4) on UMC’s 28HPC+ foundry process with Automotive Grade 1 capability.
Key performance: –40 °C to +150 °C operating range, <12.5 ns read access, 100K+ endurance cycles, >10 years data retention at 125 °C, and only 1-bit ECC required.
32 Mb macro under AG1 conditions exhibited zero bit failures and 100% peak yield, confirming robust reliability.
Collaboration yields fewer masking steps versus competing 28 nm HKMG eFlash solutions, delivering cost and manufacturing efficiency benefits.

3 days ago

Press Release

Microchip raises Q3 revenue forecast

MCHP

Guidance Update

Microchip Technology raised its fiscal Q3 revenue outlook to $1.185 – $1.19 billion, above prior guidance, sending shares up over 4% in after-hours trading.
The upgrade reflects a broad-based market recovery driven by inventory correction, strong December-quarter bookings, and new customer designs moving into production, improving the March-quarter starting backlog.
Management noted a substantial decline in internal inventory and plans to ramp factory production to reduce inventory write-offs and under-utilization charges.
Despite these operational gains, the company still faces multi-year challenges, including a 12.1% three-year revenue decline, 3.68% operating margin, and –4.39% net margin.

Jan 5, 2026, 10:49 PM

Barron's

Microchip Technology provides Q3 FY2026 business update

MCHP

Guidance Update

Net sales expected at $1,185 million, above prior guidance of $1,109–1,149 million for Q3 FY2026.
Substantial progress on nine-point recovery plan, with reduced internal inventory and planned factory ramp in the March quarter to lower under-utilization charges.
CEO Steve Sanghi reports strong bookings, broad-based end-market recovery, and improved backlog entering the March quarter.
No conference call scheduled; full Q3 FY2026 results will be announced on February 5, 2026.

Jan 5, 2026, 9:27 PM

8-K

Microchip Technology raises Q3 FY2026 net sales guidance

MCHP

Guidance Update

Microchip expects Q3 FY2026 net sales of $1,185 million, above its prior guidance of $1,109 million to $1,149 million.
CEO Steve Sanghi highlighted a broad-based end-market recovery, strong December-quarter bookings, and a higher starting backlog for the March quarter.
Progress on its nine-point recovery plan has cut internal inventory write-offs and will reduce under-utilization charges as factory ramps commence in the March quarter.
No conference call will be held; fiscal Q3 2026 results are scheduled for release on February 5, 2026.

Jan 5, 2026, 9:15 PM

Press Release

Microchip outlines AI roadmap and inventory recovery at Barclays Tech Conference

MCHP

Product Launch

Revenue Acceleration/Inflection

Microchip is leveraging the AI tailwind in data centers with its 3 nm PCIe Gen 6 switch, upcoming Gen 6 retimers, and ChipLink software platform, alongside timing and secure-boot products, aiming for significant growth over the next five years.
On the edge, the AI/ML group offers a model zoo for microcontrollers handling sensor tasks without accelerators, while FPGA accelerators serve vision systems; wired Ethernet (T1/T1S) connectivity is rapidly being adopted in robotics and Industry 4.0.
Automotive and industrial inventory correction is nearing completion, evidenced by 199 days of inventory and short lead times; broad-based booking strength supports expectations for the March quarter to outpace the typical flat-to-up 1–2% seasonal trend.
Data center & compute and aerospace & defense accounted for 19% and 18% of revenue last year; A&D growth is driven by hypersonics, satellites, and a next-generation octal RISC-V space computer under NASA contract, sampling in mid-2026.
With 37% in-house wafer fab capacity (400 M undepreciated equipment), underutilization and inventory reserve run-offs are poised to boost gross margin toward the 65% target; free cash flow now covers the dividend, and the focus is on balance-sheet deleveraging before buybacks.

Dec 11, 2025, 9:20 PM

Transcript

Microchip outlines AI data center and edge strategies and inventory correction outlook

MCHP

Guidance Update

Product Launch

Microchip is ramping its 3 nm PCIe Gen 6 switch and will introduce matching Gen 6 retimers next quarter, supported by its ChipLink software platform to accelerate Gen 6/Gen 7 deployments in AI data centers.
On the edge, the newly formed AI/ML group provides a “Model Zoo” for microcontrollers and FPGAs—training and porting models for vibration, sound and battery management—with accelerators reserved for vision and optical inspection systems.
Management sees broad-based booking strength across end markets and expects the March quarter to perform meaningfully above the typical 1–2 % seasonal growth rate, driven by backlog build.
Inventory correction is underway: distribution inventories are lean, customer inventories are normalizing, and reducing inventory reserves should yield a $50 M quarterly benefit to gross margin over the next 3–4 quarters.

Dec 11, 2025, 9:20 PM

Transcript

Microchip Technology outlines AI, data center products and market outlook at Barclays conference

MCHP

Product Launch

Guidance Update

Launched a 3nm PCIe Gen6 switch with matching Gen6 retimers next quarter and expanded ChipLink software platform for AI data center applications.
AI/ML group developed a Model Zoo for edge microcontrollers, enabling customers to deploy vibration, sound, and battery-management models without accelerators; FPGA products use accelerators for vision systems.
Inventory correction nearing completion with broad-based booking strength in automotive and industrial end markets; March quarter expected to meaningfully exceed typical flat-to-2% seasonal growth due to strong backlog build.
Financial initiatives include a $50 million quarterly gross margin benefit from declining inventory reserves over the next 3–4 quarters and free cash flow now covering the dividend; no share buybacks until leverage improves.
Secular growth driven by data center & compute (19% of revenue) and aerospace & defense (18%), alongside communications and a new high-performance octal RISC-V space computer for NASA sampling mid-2026.

Dec 11, 2025, 9:20 PM

Transcript

Microchip raises guidance and highlights data center inflection at UBS 2025 AI conference

MCHP

Guidance Update

Product Launch

Revenue Acceleration/Inflection

Microchip lifted its December-quarter guidance to the high end of the range after phenomenal bookings in November and widespread customer pull-ins, offsetting typical seasonal weakness.
November represented the strongest bookings month in over three years, underpinned by a distributor inventory correction in its “ninth inning” and OEM customers restocking to match consumption.
Management outlined a multi-pillar growth strategy: core microcontroller/analog recovery plus accelerated growth in network/connectivity, high-performance compute, and edge AI—led by data center solutions.
The company launched the world’s first 3 nm PCIe Gen 6 switch, emphasizing industry-leading power efficiency and built-in multicast capabilities for AI workloads.
Microchip aims for a 65% long-term product gross margin, guiding to the high-50s in Q1 FY 2026 as higher-margin data center and licensing revenues ramp.

Dec 3, 2025, 7:55 PM

Transcript

Microchip raises Q4 guidance at UBS 2025 Technology Conference

MCHP

Guidance Update

Product Launch

Revenue Acceleration/Inflection

Microchip raised its December quarter guidance to the high-end of its prior range after record bookings in November, driven by strong customer pull-ins and low backlog.
Management reported broad-based recovery across all end markets—data center, aerospace & defense, industrial, automotive, communications, and consumer.
The data center solutions unit launched the world’s first 3nm PCIe Gen 6 switch featuring market-leading power efficiency and multicast capability; the PCIe switch and retimer market is projected to reach $12 billion by 2030.
Q3 product gross margin was 67.4%, offset by 10.8 pp of inventory write-offs and underutilization charges, yielding a reported margin of 56.7%; Microchip expects >58% in the March quarter and targets 65% long-term.

Dec 3, 2025, 7:55 PM

Transcript

Microchip raises Q4 guidance and outlines data center growth strategy

MCHP

Guidance Update

Product Launch

Revenue Acceleration/Inflection

Microchip guided its December quarter revenue to the high end of its range, expecting only a 1% sequential decline versus the usual 3-5% seasonal drop, driven by strong November bookings and customer pull-ins.
Management sees broad-based recovery across all end markets—including data center, aerospace & defense, industrial, automotive, communications, and consumer—with March and June quarters also shaping up strongly.
Inventory destocking is nearing completion, with distributor cuts in the “ninth inning” and OEM inventory in the “eighth inning,” while renewed design activity in 2024-25 is driving demand.
The company introduced the world’s first 3nm PCIe Gen6 switch featuring high power efficiency and multicast support, targeting a PCIe switch market forecasted to reach $12 billion by 2030.
Q1 gross margin is expected to exceed 58%, recovering from a 10.8% headwind from underutilization and inventory charges, on the way to a long-term target of 65%.

Dec 3, 2025, 7:55 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for MICROCHIP TECHNOLOGY.

Q2 2026

Nov 6, 2025

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Q1 2026

Aug 7, 2025

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Q4 2025

May 8, 2025

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MICROCHIP TECHNOLOGY (MCHP)

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Steve Sanghi

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