Microchip Technology Q3 adjusted EPS beats expectations

Microchip Technology

05/02/2026 21:27

Overview

Embedded control solutions provider's fiscal Q3 revenue up 15.6% yr/yr

Adjusted EPS for fiscal Q3 beat analyst expectations

Company declared quarterly dividend of 45.5 cents per share for March quarter

Outlook

Microchip expects Q4 fiscal 2026 net sales between $1.240 bln and $1.280 bln

Company anticipates gross margins to expand towards long-term target of 65%

Microchip plans capital expenditures between $20 mln and $23 mln for qtr ending March 31

Result Drivers

MARGIN EXPANSION - Significant margin expansion attributed to operational improvements and inventory reduction

CONNECTIVITY BUSINESS - Strong momentum in connectivity business driven by modernization cycles in automotive and industrial markets

INVENTORY REDUCTION - Substantial progress on inventory reduction positioning for improved operational efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$0.44
$0.41 (22 Analysts)
Q3 EPS
$0.06
Q3 Adjusted Net Income
$252.80 mln
Q3 Net Income
$34.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 6 "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 $85.00, about 8.7% above its February 4 closing price of $78.23

The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nGNX17WrF

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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.)