Microchip Technology reports Q3 sales of $1.19 billion, above guidance

Microchip Technology Incorporated (NASDAQ: MCHP) announced that net sales for its third quarter of fiscal 2026, which ended December 31, 2025, reached approximately $1.19 billion. This figure exceeds the company's original guidance range of $1.11 billion to $1.15 billion provided on November 6, 2025, and its revised guidance from December 2, 2025.

Chief Executive Officer Steve Sanghi stated that the company continues to experience recovery across most end markets, driven by inventory correction progress in distribution channels and direct customers, along with new customer designs entering production. Sanghi noted that bookings activity was strong during the December quarter and that the March quarter starting backlog began at higher levels compared to the December quarter.

The company reported progress on elements of its nine-point recovery plan and strategic initiatives. Sanghi indicated that Microchip has achieved a substantial reduction in internal inventory, which is expected to reduce inventory write-offs. The company is preparing to increase factory utilization in the March quarter, which should decrease under-utilization charges.

Microchip will announce complete fiscal third quarter 2026 financial results on February 5, 2026. The company did not hold a conference call in connection with this business update.

The Chandler, Arizona-based company provides embedded control solutions across industrial, automotive, consumer, aerospace and defense, communications and computing markets.

You May Also Be Interested In

• Haemonetics signs non-exclusive supply deal with CSL Plasma
• Einride to deploy 500 Tesla Semis across North America for Amazon
• Aaron Day resigns from Amaze Holdings board of directors