Microchip Technology Expects Third-Quarter Sales to Surpass Prior Guidance: Year-over-Year Revenue to Grow 12%
Updated Guidance Shows Net Sales and Earnings Surpassing Previous Estimates
Microchip Technology Incorporated (NASDAQ: MCHP) delivered an encouraging update for its fiscal third quarter, now forecasting net sales and earnings per share at the high end of its prior guidance. Instead of the anticipated decline, the company now expects approximately 1% sequential growth—significantly outpacing the previous midpoint expectation.
12% Revenue Growth Signals Strengthening Fundamentals
For the December 2025 quarter, Microchip estimates consolidated net sales will reach roughly $1.149 billion. This not only meets the top of its previously forecasted range ($1.109B–$1.149B), but also marks an impressive 12% growth compared to the same quarter last year.
The revised guidance puts GAAP earnings per share at around $0.02, and non-GAAP earnings per share at approximately $0.40—again, each at the upper limit of initial projections.
| Quarter Ending | Prior Sales Guidance ($B) | Revised Sales Guidance ($B) | Prior GAAP EPS Range | Revised GAAP EPS | Prior Non-GAAP EPS Range | Revised Non-GAAP EPS | Y/Y Revenue Growth |
|---|---|---|---|---|---|---|---|
| Dec 2025 | 1.109 – 1.149 | 1.149 | (0.02) – 0.02 | 0.02 | 0.34 – 0.40 | 0.40 | 12% |
Improved Backlog and Bookings Signal Ongoing Recovery
CEO Steve Sanghi attributed this revised outlook to business performance exceeding initial expectations, with strong bookings continuing through November. Notably, backlog growth for both the current and upcoming quarters reflects increased customer demand, giving further confidence in Microchip’s operational recovery and growth initiatives.
Operational Initiatives Support Margin and Earnings Expansion
The company credits execution on its nine-point recovery plan for driving improvements in non-GAAP gross and operating margins. By focusing on inventory reductions and margin improvements, Microchip continues to progress towards its long-term business model, providing added visibility and stability for stakeholders.
Upcoming Events and Strategic Outlook Remain in Focus
While the update provided fresh financial clarity, Microchip is not holding a conference call specific to this guidance change. However, management is set to participate in the UBS Global Technology and AI Conference on December 3, 2025, which investors can follow via webcast for additional color on strategy and outlook.
Takeaway: Robust Momentum Carries into March 2026
With both revenue and EPS tracking above prior guidance—and customer bookings strengthening into early 2026—Microchip’s trajectory is markedly positive. Investors may wish to monitor upcoming industry events and subsequent filings for further signs of how well the recovery plan is translating into sustainable results.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI