We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Microchip expects net sales to be between $1.110 billion and $1.150 billion for the second quarter of fiscal 2026, implying roughly 5.1% sequential growth. Non-GAAP earnings are anticipated to be 30-36 cents per share.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $1.13 billion, indicating a year-over-year decline of 2.74%.
The consensus mark for fiscal second-quarter earnings is pegged at 33 cents per share, unchanged over the past 30 days, suggesting a 28.26% year-over-year decline.
Microchip Technology Incorporated Price and EPS Surprise
Microchip’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 0.23%.
Let us see how things might have shaped up for MCHP prior to the announcement:
Key Factors to Note for MCHP’s Q2 Results
Microchip has been suffering from persistent macroeconomic weakness and limited visibility. However, the company’s second-quarter fiscal 2026 results are likely to reflect improving inventory levels, which reached 214 days in the first quarter of fiscal 2026 and have reduced over the past two quarters. Microchip expects inventory days between 195 and 200 days at the end of the fiscal second quarter.
Improving inventory is expected to have benefited gross margin in the to-be-reported quarter. Revenues are expected to have benefited from inventory correction at distributors and an increase in direct customer shipments.
Microchip benefits from strong design wins, particularly in the industrial, aerospace, and automotive sectors, which is noteworthy. The company’s focus on high-growth areas like aerospace, defence, and AI, with innovations in microcontrollers, PCIe switches, and AI tools, is boosting adoption across automotive, industrial, and AI/ML markets. This is expected to have boosted revenues in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
Microchip has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
Microchip to Report Q2 Earnings: What's in Store for the Stock?
Key Takeaways
Microchip Technology (MCHP - Free Report) is set to report second-quarter fiscal 2026 results on Nov. 6.
Microchip expects net sales to be between $1.110 billion and $1.150 billion for the second quarter of fiscal 2026, implying roughly 5.1% sequential growth. Non-GAAP earnings are anticipated to be 30-36 cents per share.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $1.13 billion, indicating a year-over-year decline of 2.74%.
The consensus mark for fiscal second-quarter earnings is pegged at 33 cents per share, unchanged over the past 30 days, suggesting a 28.26% year-over-year decline.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
Microchip’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 0.23%.
Let us see how things might have shaped up for MCHP prior to the announcement:
Key Factors to Note for MCHP’s Q2 Results
Microchip has been suffering from persistent macroeconomic weakness and limited visibility. However, the company’s second-quarter fiscal 2026 results are likely to reflect improving inventory levels, which reached 214 days in the first quarter of fiscal 2026 and have reduced over the past two quarters. Microchip expects inventory days between 195 and 200 days at the end of the fiscal second quarter.
Improving inventory is expected to have benefited gross margin in the to-be-reported quarter. Revenues are expected to have benefited from inventory correction at distributors and an increase in direct customer shipments.
Microchip benefits from strong design wins, particularly in the industrial, aerospace, and automotive sectors, which is noteworthy. The company’s focus on high-growth areas like aerospace, defence, and AI, with innovations in microcontrollers, PCIe switches, and AI tools, is boosting adoption across automotive, industrial, and AI/ML markets. This is expected to have boosted revenues in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
Microchip has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Affirm (AFRM - Free Report) currently has an Earnings ESP of +3.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Affirm shares have risen 18.4% year to date. AFRM is set to report first-quarter fiscal 2026 results on Nov. 06.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present.
Bill Holdings shares have lost 42% year to date. BILL is set to report first-quarter 2026 results on Nov. 6.
Cisco Systems (CSCO - Free Report) presently has an Earnings ESP of +1.91% and a Zacks Rank #3.
Cisco Systems shares have risen 25.7% year to date. CSCO is scheduled to report first-quarter 2026 results on Nov.12.