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Microchip Technology

MCHP Q2 2026 Earnings

Reported Nov 6, 2025 at 4:21 PM ET · SEC Source

Q2 26 EPS

$0.35

BEAT +4.92%

Est. $0.33

Q2 26 Revenue

$1.14B

BEAT +0.68%

Est. $1.13B

vs S&P Since Q2 26

+58.4%

BEATING MARKET

MCHP +65.8% vs S&P +7.4%

Market Reaction

Did MCHP Beat Earnings? Q2 2026 Results

Microchip Technology posted a modest but clean beat for its fiscal second quarter of 2026, with non-GAAP earnings of $0.35 per share edging past the $0.33 consensus estimate by 4.92% and revenue of $1.14 billion coming in ahead of the $1.13 billion a… Read more Microchip Technology posted a modest but clean beat for its fiscal second quarter of 2026, with non-GAAP earnings of $0.35 per share edging past the $0.33 consensus estimate by 4.92% and revenue of $1.14 billion coming in ahead of the $1.13 billion analyst expectation. The top line declined 2.0% year-over-year but reflected a 6.0% sequential rebound, a signal that the company's prolonged inventory correction may finally be turning. The key driver behind the in-line sequential recovery was a strengthening order environment: September quarter bookings grew 10% sequentially with a book-to-bill ratio of 1.06, and customer requests for expedited shipments picked up notably, suggesting channel destocking is progressing. Margin pressure remained a headwind, however, with non-GAAP gross margins compressing to 56.7% from 59.5% a year ago amid elevated operating expenses. Analysts have flagged continued softness in automotive and industrial end markets as a near-term concern. Looking ahead, Microchip guided fiscal Q3 2026 revenue to a midpoint of $1.13 billion, with non-GAAP EPS of $0.34 to $0.40.

Key Takeaways

  • • 6.0% sequential net sales growth above guidance midpoint
  • • September quarter bookings grew 10% sequentially with book-to-bill ratio of 1.06
  • • Increased customer requests for expedited shipments indicating inventory normalization
  • • Robust momentum in data center applications as customers re-engage following inventory corrections
  • • Accelerating global aerospace and defense spending driving demand for integrated solutions
  • • Disciplined cost management and improved operational efficiency
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MCHP YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“Our second quarter results demonstrate continued momentum in our recovery, with net sales of $1.140 billion growing 6% sequentially and above the midpoint of our guidance. The operational improvements we have implemented are translating into meaningful financial progress despite the broader market recovery developing more gradually than anticipated. We believe our operational capabilities position us to outperform as conditions improve.”

— Steve Sanghi, Q2 2026 Earnings Press Release

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