MICROCHIP TECHNOLOGY (MCHP) Company Report

Net sales were $1.186 billion, up 4% sequentially and 15.6% year-over-year; non-GAAP gross margin was 60.5% and non-GAAP EPS was $0.44.
Operating cash flow was $341.4 million and adjusted free cash flow was $305.6 million; net debt to adjusted EBITDA improved to 4.18×.
Q4 FY2026 guidance: net sales of $1.26 billion ± $20 million (+6.2% seq, +29.8% YoY), non-GAAP EPS of $0.48–$0.52, and gross margin of 60.5–61.5%.
Announced three design wins for its Gen 6 PCIe switch, including a >$100 million revenue opportunity in calendar 2027.

1 day ago

Transcript

Microchip Technology reports Q3 2026 results

MCHP

Earnings

Guidance Update

Revenue Acceleration/Inflection

Net sales rose 4% sequentially and 15.6% year-over-year, with strength in networking, data center, FPGA and licensing businesses; distributor sell-in vs. sell-through gap narrowed to $11.7 million from $52.9 million, indicating inventory correction.
Non-GAAP gross margin expanded 379 bps sequentially to 60.5%, and non-GAAP operating margin climbed 418 bps sequentially to 28.5%, driven by product mix and margin recovery.
For the March quarter, the company guides net sales of $1.26 billion ± $20 million (midpoint + 6.2% sequential, + 29.8% YoY), non-GAAP gross margin of 60.5–61.5%, and non-GAAP EPS of $0.48–0.52.
Book-to-bill remained above 1, with exceptionally strong December and January bookings; as of February 5, the June-quarter backlog exceeds the March-quarter backlog at the same point last cycle, signaling continued demand momentum and increasing lead-times.

1 day ago

Transcript

Microchip Technology reports Q3 2026 results

MCHP

Earnings

Guidance Update

Q3 net sales grew 4% sequentially and 15.6% year-over-year; non-GAAP gross margin reached 60.5% (+379 bps seq) and non-GAAP operating margin was 28.5% (+418 bps seq).
Cash flow from operations was $341.4 million, adjusted free cash flow $305.6 million; cash and investments totaled $250.7 million; net debt fell by $26 million, with net debt/EBITDA at 4.18×.
Distribution inventories continued normalizing as sell-through outpaced sell-in by $11.7 million (vs. $52.9 million in Q2), supporting a book-to-bill ratio above 1.
Q4 guidance: net sales of $1.26 billion ± $20 million (up 6.2% seq, 29.8% YoY); non-GAAP gross margin 60.5–61.5%; non-GAAP diluted EPS of $0.48–$0.52.

1 day ago

Transcript

Microchip Technology reports Q3 FY2026 results

MCHP

Earnings

Guidance Update

Dividends

Net sales of $1.186 billion, up 4.0% sequentially and 15.6% year-over-year for the quarter ended December 31, 2025.
On a GAAP basis, gross profit of 59.6%, operating income of $151.7 million (12.8% of sales) and EPS of $0.06; on a Non-GAAP basis, gross profit of 60.5%, operating income of $337.8 million (28.5% of sales) and EPS of $0.44.
Declared a quarterly cash dividend of $0.455 per share for the March quarter and returned $246.1 million to common stockholders in Q3.
Fourth-quarter guidance: net sales of $1.240 – 1.280 billion (midpoint $1.260 billion, +6.2% sequential, +29.8% Y/Y) and Non-GAAP EPS of $0.48 – 0.52.

1 day ago

8-K

Microchip Technology announces availability of 28nm SuperFlash Gen 4 Automotive Grade 1 Platform

MCHP

Product Launch

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.

Jan 15, 2026, 12:59 PM

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

Earnings Transcripts

Quarterly earnings call transcripts for MICROCHIP TECHNOLOGY.

Q3 2026

Feb 5, 2026

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Q2 2026

Nov 6, 2025

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Q1 2026

Aug 7, 2025

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View All Transcripts

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MICROCHIP TECHNOLOGY (MCHP)

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