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Microchip Technology

MCHP Q3 2026 Earnings

Reported Feb 5, 2026 at 4:16 PM ET · SEC Source

Q3 26 EPS

$0.44

BEAT +2.76%

Est. $0.43

Q3 26 Revenue

$1.19B

BEAT +0.08%

Est. $1.19B

vs S&P Since Q3 26

+24.1%

BEATING MARKET

MCHP +28.5% vs S&P +4.3%

Market Reaction

Did MCHP Beat Earnings? Q3 2026 Results

Microchip Technology delivered a clean beat in fiscal Q3 2026, with revenue of $1.19 billion edging past the $1.19 billion consensus by 0.08% and non-GAAP EPS of $0.44 topping estimates of $0.43 by 2.76%, as the company's ongoing recovery continued t… Read more Microchip Technology delivered a clean beat in fiscal Q3 2026, with revenue of $1.19 billion edging past the $1.19 billion consensus by 0.08% and non-GAAP EPS of $0.44 topping estimates of $0.43 by 2.76%, as the company's ongoing recovery continued to gain traction. Revenue climbed 15.6% year over year, driven in large part by CEO Steve Sanghi's nine-point recovery plan, which management credits for improved factory utilization, inventory normalization, and non-GAAP gross margin expansion to 60.5% from 52% just two quarters prior. The company also posted GAAP net income of $34.90 million, compared to a net loss of $53.60 million in the year-ago period, a notable shift reflecting the scale of the operational improvement underway. PCIe Gen 6 design wins, including one projected to generate over $100 million in 2027 revenue, add longer-term conviction to the recovery narrative. Looking ahead, management guided fiscal Q4 net sales to a midpoint of $1.26 billion, representing approximately 6.2% sequential growth, with non-GAAP EPS expected in the range of $0.48 to $0.52.

Key Takeaways

  • • Broad-based recovery across end markets
  • • Nine-point recovery plan execution driving margin expansion
  • • Non-GAAP gross margin expansion from 52% in March 2025 to 60.5% in December 2025 quarter
  • • Inventory reduction improving operational efficiency
  • • Non-GAAP operating profit growing faster sequentially than net sales
  • • Operating cash flow resumed covering debt obligations and dividend payments

MCHP Forward Guidance & Outlook

For fiscal Q4 2026 (March quarter), Microchip guided net sales of $1.240 billion to $1.280 billion (midpoint $1.260 billion), representing approximately 6.2% sequential growth and 29.8% year-over-year growth at the midpoint. Non-GAAP gross profit margins are expected at 60.5% to 61.5%. Non-GAAP EPS is guided at $0.48 to $0.52. GAAP EPS is guided at $0.08 to $0.12. Capital expenditures for the March quarter are expected between $20 million and $23 million, and for all of fiscal 2026 at or below $100 million. Management noted March quarter starting backlog is substantially better than December quarter levels with strong booking momentum. Non-GAAP gross margins are expected to continue expanding toward a long-term target of 65%.

24/7 Wall St

MCHP YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

“Our fiscal third quarter results exceeded our expectations, with net sales of $1.186 billion growing 4% sequentially, and 15.6% year-over-year, well above our original guidance. We believe the broad-based recovery across our end markets, combined with significant margin expansion, demonstrates the tangible impact of our nine-point recovery plan execution. Our non-GAAP operating profit grew sequentially more than our net sales did in the December quarter, highlighting the operational momentum we have in our business.”

— Steve Sanghi, Q3 2026 Earnings Press Release

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