Microchip Q2 adjusted EPS beats estimates on market demand

Microchip Technology

06/11/2025 22:06

Overview

Microchip Q2 sales of $1.14 bln meet analyst expectations, up 6% sequentially

Adjusted EPS for Q2 beats analyst expectations at $0.35

Company returned $245.8 mln to shareholders through dividends in Q2

Outlook

Microchip expects Q3 net sales of $1.109 bln to $1.149 bln

Company anticipates Q3 GAAP gross profit margin of 56.2% to 58.1%

Capital expenditures for Q3 expected between $15 mln and $25 mln

Result Drivers

OPERATIONAL IMPROVEMENTS - CEO Steve Sanghi attributes sequential sales growth to operational improvements and strategic initiatives

MARKET DEMAND - Co sees strong customer engagement in data center and aerospace markets, driving demand for integrated solutions

TECHNOLOGICAL MILESTONE - Launch of 3nm PCIe Gen 6 switch for AI and enterprise data centers marks significant tech advancement

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Meet
$1.14 bln
$1.14 bln (19 Analysts)
Q2 Adjusted EPS
Beat
$0.35
$0.33 (21 Analysts)
Q2 EPS
$0.03
Q2 Adjusted Net Income
$199.10 mln
Q2 Net Income
$13.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Microchip Technology Inc is $78.50, about 22.5% above its November 5 closing price of $60.80

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nGNX9ydFfn

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)