European Investor
06 Nov 2026, 09:32
Microchip Technology Falls 2.3% Premarket as Q3 Guidance Points to Sequential Slowdown
Microchip Technology (NASDAQ: MCHP) shares fell about 2.3% in premarket trading despite reporting stronger-than-expected fiscal second-quarter results.
Net sales rose 42.2% year over year and 9.2% sequentially to $1.62 billion, above the midpoint of prior guidance. Non-GAAP EPS reached $0.97, also above the company’s previous $0.91-$0.95 range.
However, Microchip expects fiscal third-quarter revenue of $1.573-$1.638 billion, implying roughly a 1% sequential decline at the midpoint. Adjusted EPS is expected at $0.87-$0.95, below the $0.97 delivered in the September quarter.
Margin guidance also points to some near-term pressure, with non-GAAP gross margin expected at 64%-65% compared with 66.5% in the latest quarter.
Management said the sequential decline partly reflects approximately $53 million of infrequent revenue that will not repeat, while bookings remain strong and data center design wins continue to expand.
The 2.3% premarket decline appears to reflect the softer sequential revenue and earnings outlook and lower expected margins, despite strong year-over-year growth and continued demand across industrial, data center and AI-related applications.
Microchip Technology (NASDAQ: MCHP) shares fell about 2.3% in premarket trading despite reporting stronger-than-expected fiscal second-quarter results.
Net sales rose 42.2% year over year and 9.2% sequentially to $1.62 billion, above the midpoint of prior guidance. Non-GAAP EPS reached $0.97, also above the company’s previous $0.91-$0.95 range.
However, Microchip expects fiscal third-quarter revenue of $1.573-$1.638 billion, implying roughly a 1% sequential decline at the midpoint. Adjusted EPS is expected at $0.87-$0.95, below the $0.97 delivered in the September quarter.
Margin guidance also points to some near-term pressure, with non-GAAP gross margin expected at 64%-65% compared with 66.5% in the latest quarter.
Management said the sequential decline partly reflects approximately $53 million of infrequent revenue that will not repeat, while bookings remain strong and data center design wins continue to expand.
The 2.3% premarket decline appears to reflect the softer sequential revenue and earnings outlook and lower expected margins, despite strong year-over-year growth and continued demand across industrial, data center and AI-related applications.
