Microchip Technology raises Q3 fiscal 2026 guidance on strong performance

Microchip Technology Incorporated (NASDAQ: MCHP) raised its financial guidance for the third quarter of fiscal 2026, ending December 31, 2025, citing better-than-expected business performance.

The semiconductor company now expects net sales and earnings per diluted share to reach the high end of previously provided guidance. The revised guidance anticipates sequential growth of approximately 1%, exceeding the midpoint of prior guidance that had anticipated a sequential decline in net sales.

Microchip now projects consolidated net sales of about $1.149 billion for the December quarter, representing 12% year-over-year growth. The company previously provided guidance on November 6, 2025, for consolidated net sales between $1.109 billion and $1.149 billion.

GAAP earnings per share is expected to be approximately $0.02, while non-GAAP earnings per share is projected at about $0.40. The original GAAP guidance ranged from a loss of $0.02 to earnings of $0.02 per share, and non-GAAP earnings per share guidance was between $0.34 and $0.40.

"With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call," said Steve Sanghi, Microchip's CEO and President. "Our bookings activity has remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter."

The company stated it is executing on its nine-point recovery plan and strategic initiatives, working to reduce inventory levels and improve non-GAAP gross margins, operating margins and earnings per share.

Microchip is scheduled to attend the UBS Global Technology and AI Conference on December 3, 2025. The information is based on a company press release statement.

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