Microchip Technology Inc. has announced an upward revision of its financial guidance for the third quarter of fiscal year 2026, ending December 31, 2025. The company now anticipates its net sales and earnings per diluted share to reach the higher end of its previously stated range, signaling stronger-than-expected performance.
Key Takeaways
- Microchip Technology raises its third-quarter fiscal 2026 revenue and earnings per share expectations.
- The company now expects net sales and earnings per share to be at the high end of its prior guidance.
- Revised revenue guidance indicates 12% year-over-year growth.
- Bookings activity remains strong, with backlog growing into the next quarter.
Revised Financial Guidance
Microchip Technology has updated its outlook, now projecting its net sales and earnings per diluted share to land at the upper end of its previously issued guidance. This revised forecast represents a sequential growth of approximately 1%, surpassing the midpoint of the company’s earlier projection, which had anticipated a sequential decline in net sales. The updated revenue guidance for the December 2025 quarter now points to a robust 12% increase compared to the same period last year.
Previously, on November 6, 2025, Microchip had provided guidance for consolidated net sales to fall between $1.109 billion and $1.149 billion. The company’s latest update indicates that GAAP earnings per share are now expected to be around $0.02, while non-GAAP earnings per share are projected to be approximately $0.40. This marks an improvement from the original guidance, which had placed GAAP earnings per share between $(0.02) and $0.02, and non-GAAP earnings per share between $0.34 and $0.40.
Strong Business Performance and Outlook
Steve Sanghi, CEO and President of Microchip, expressed optimism regarding the company’s current performance. "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," Sanghi stated. He highlighted that bookings activity has remained strong through November, with the backlog filling in better than anticipated for the current quarter and showing healthy growth into the March 2026 quarter. Sanghi also noted the company’s progress in executing its nine-point recovery plan and strategic initiatives, which are focused on reducing inventory levels and improving key financial metrics such as non-GAAP gross margins, operating margins, and earnings per share, all contributing to advancements toward Microchip’s long-term business model.
Market Reaction and Future Engagements
Following the announcement of the revised guidance, Microchip Technology’s shares saw an increase in after-hours trading. The company is scheduled to participate in the UBS Global Technology and AI Conference on Wednesday, December 3, 2025. A live webcast and replay of its presentation from the conference will be accessible on Microchip’s investor relations website.
Sources
- Microchip Technology Raises Financial Guidance for Sales and EPS for Third Quarter of Fiscal Year 2026, Yahoo Finance.
- Microchip Technology Lifts Q3 Outlook, Nasdaq.
- Microchip Technology Shares Move Higher After Hours: Here’s Why, Benzinga.
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