Microchip narrows Q3 adjusted EPS view to 40c from 34c-40c, consensus 37c

Revises Q3 revenue view to up 12% from $1.11B-$1.15B, consensus $1.13B. Microchip (MCHP) now expects its net sales and earnings per diluted share to be at the high end of its previously provided guidance, representing sequential growth of roughly 1% that exceeds the midpoint of our prior guidance which anticipated a sequential decline in net sales. The company’s revised December quarter revenue guidance would represent 12% year-over-year growth. Steve Sanghi, Microchip’s CEO and President, commented, “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. 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. We are executing on our nine-point recovery plan as well as our strategic initiatives, reducing inventory levels, improving non-GAAP gross margins, operating margins and earnings per share, and making progress towards our long-term business model.”