Microchip Technology Provides Q3 Fiscal 2026 Business Update
CHANDLER, Ariz., Jan. 5, 2026 — (NASDAQ: MCHP) - Microchip Technology Incorporated, a prominent provider of smart, connected, and secure embedded control solutions, announced an optimistic projection for its net sales in the third quarter of fiscal year 2026.
Strong Sales Performance Expected
The company forecasts net sales to reach approximately $1,185 million, significantly surpassing its previous guidance range of $1,109 million to $1,149 million issued on November 6, 2025. This also exceeds the revised guidance announced on December 2, 2025, which anticipated net sales at the higher end of the original range.
CEO Comments on Market Recovery
Steve Sanghi, President and CEO of Microchip, shared insights into the company's performance, stating, “We continue to experience a fairly broad-based recovery in most of our end markets driven by progress we have made in inventory correction in distribution as well as direct customers, and with new customer designs turning to production.”
He highlighted that Microchip's bookings activity remained strong during the December quarter, an unusual achievement considering it coincided with the holiday period. Furthermore, he noted that the starting backlog for the upcoming March quarter looks promising, significantly better than the previous quarter.
Progress on Recovery Initiatives
Microchip has made notable advancements in executing its nine-point recovery plan as well as other strategic initiatives. According to Sanghi, there has been a substantial reduction in internal inventory, which is expected to lower the level of inventory write-offs. The company is also preparing to ramp up factory operations in the March quarter, which will help mitigate under-utilization charges.
Sanghi concluded, “We look forward to a very good calendar year 2026, as we reap the benefits from the success of our nine-point recovery plan.”
Upcoming Financial Reports
Microchip Technology is set to release its complete financial results for the third quarter of fiscal 2026 on February 5, 2026. Notably, there will be no conference call following this press release.
Cautionary Statements
Investors should note that the projections expressed in this release are forward-looking statements that involve various risks and uncertainties that could affect actual results. Factors influencing these risks include:
- Fluctuations in the U.S. and global economies
- Changes in tariffs and interest rates
- Political and geopolitical events
- Demand changes for Microchip's products
- Inventory management challenges
- Effects of inflation and competitive pressures
For a detailed discussion on these risk factors, refer to Microchip's filings on Forms 10-K and 10-Q accessible on the company’s website and the SEC's website.
About Microchip Technology Inc.
Microchip Technology Inc. is a leading supplier of semiconductors dedicated to simplifying innovative design through comprehensive system solutions. The company offers a wide range of development tools and product support that span numerous sectors including industrial, automotive, and communications. To learn more, visit the Microchip website.