Revenue Growth Driven by Demand Recovery
The 38% increase in net sales was primarily due to increased demand after customers reduced excess inventory levels, as well as new customer design win activity entering production.
MICROCHIP TECHNOLOGY INC is expected to release its Q3 2026 10-Q filing on November 4, 2026, after market close. Last quarter: Microchip's Q1 FY2027 revenue jumped 38% and net income swung to a $229.8 million profit as demand recovered, margins improved, and operating leverage kicked in.
EPS Estimate
$0.80
Revenue Estimate
$1.58B
Analyst consensus from Finnhub and Financial Modeling Prep. Actual results posted within minutes of the SEC filing on the MCHP page.
Drawn from management commentary in the Q2 2026 10-Q:
The 38% increase in net sales was primarily due to increased demand after customers reduced excess inventory levels, as well as new customer design win activity entering production.
Gross profit increased by $362.2 million, with favorable impacts of $68.6 million from lower inventory reserve charges and $9.6 million from higher licensing revenue, along with lower unabsorbed capacity charges.
Inventory days decreased to 175 days at June 30, 2026 from 185 days at March 31, 2026, and distributor inventory held steady at 25 days, reflecting improved balance between production and demand.
Revenue
$1.48B
+38.05% YoY
EPS (Diluted)
$0.37
+511.11% YoY
Gross Margin
63.2%
+9.6 pts YoY
Operating Income
$336.8M
+949.22% YoY
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