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Microchip expects net sales of $1.26 billion (+/-$20 million) at the mid-point for the fourth quarter of fiscal 2026, which indicates 6.2% sequential growth and a 29.8% rise from the year-ago quarter's reported figure. Non-GAAP earnings are anticipated to be 48-52 cents per share.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $1.27 billion, indicating a year-over-year growth of 30.8%. The consensus mark for fiscal fourth-quarter earnings is pegged at 50 cents per share, unchanged over the past 30 days, and significantly higher than 11 cents reported in the year-ago quarter.
Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 7.72%.
Microchip Technology Incorporated Price and EPS Surprise
Let us see how things might have shaped up for MCHP prior to the announcement:
Key Factors to Note for MCHP’s Q4 Results
Microchip has been suffering from challenging macroeconomic conditions and high inventory levels. MCHP’s channel inventory decreased to 201 days at the end of the third quarter of fiscal 2026, while underutilization stood at $51.7 million. The company is expected to have benefited from a near-normal level of inventory at distributors. Increasing supply constraints across substrates, subcontracting, and foundry nodes are expected to have benefited MCHP’s to-be-reported quarter’s results.
Microchip is expected to have benefited from a mix shift toward higher-margin products with strong momentum across networking & connectivity (Ethernet, PCIe), data center products, FPGA and memory, as well as strong aerospace & defense demand. This is expected to have boosted revenues in the to-be-reported quarter.
The company entered the fiscal fourth quarter with a much higher backlog, which is expected to have benefited growth. MCHP expects roughly 6.2% sequential growth, better than the typical seasonality of roughly 2-3%. Gross margin is expected to be at 61% at mid-point (guidance between 60.5% and 61.5% of sales), driven by strong top-line growth.
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 #2. 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:
View the Zacks #1 Rank List
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Microchip to Report Q4 Earnings: What's in Store for the Stock?
Key Takeaways
Microchip (MCHP - Free Report) is set to report fourth-quarter fiscal 2026 results on May 7.
Microchip expects net sales of $1.26 billion (+/-$20 million) at the mid-point for the fourth quarter of fiscal 2026, which indicates 6.2% sequential growth and a 29.8% rise from the year-ago quarter's reported figure. Non-GAAP earnings are anticipated to be 48-52 cents per share.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $1.27 billion, indicating a year-over-year growth of 30.8%. The consensus mark for fiscal fourth-quarter earnings is pegged at 50 cents per share, unchanged over the past 30 days, and significantly higher than 11 cents reported in the year-ago quarter.
Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 7.72%.
Microchip Technology Incorporated Price and EPS Surprise
Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote
Let us see how things might have shaped up for MCHP prior to the announcement:
Key Factors to Note for MCHP’s Q4 Results
Microchip has been suffering from challenging macroeconomic conditions and high inventory levels. MCHP’s channel inventory decreased to 201 days at the end of the third quarter of fiscal 2026, while underutilization stood at $51.7 million. The company is expected to have benefited from a near-normal level of inventory at distributors. Increasing supply constraints across substrates, subcontracting, and foundry nodes are expected to have benefited MCHP’s to-be-reported quarter’s results.
Microchip is expected to have benefited from a mix shift toward higher-margin products with strong momentum across networking & connectivity (Ethernet, PCIe), data center products, FPGA and memory, as well as strong aerospace & defense demand. This is expected to have boosted revenues in the to-be-reported quarter.
The company entered the fiscal fourth quarter with a much higher backlog, which is expected to have benefited growth. MCHP expects roughly 6.2% sequential growth, better than the typical seasonality of roughly 2-3%. Gross margin is expected to be at 61% at mid-point (guidance between 60.5% and 61.5% of sales), driven by strong top-line growth.
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 #2. 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:
CDW (CDW - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CDW shares have declined 0.7% year to date. CDW is set to report first-quarter 2026 results on May 6.
Flex (FLEX - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2.
Flex shares have surged 52% year to date. Flex is set to report its fourth-quarter fiscal 2026 results on May 6.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #2.
Cisco shares have returned 20.2% year to date. Cisco is set to report its third-quarter fiscal 2026 results on May 13.