Microchip Technology Q4 revenue beats estimates on broad-based demand growth

Microchip Technology

07/05/2026 21:28

Overview

U.S. embedded control chipmaker's fiscal Q4 revenue rose 35% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q4 beat consensus

Company cites broad-based improvement, stronger demand, and lower inventory as drivers

Outlook

Microchip sees June qtr net sales of $1.442 bln to $1.469 bln

Company expects June qtr non-GAAP EPS of $0.67 to $0.71

Microchip expects continued strengthening in booking activity and improved demand

Result Drivers

BROAD-BASED DEMAND - Co said revenue growth reflected broad-based improvement across product lines and end-markets

INVENTORY REDUCTION - Co said lower inventory and improved demand led to higher internal factory utilization and operating leverage

DATA CENTER AND AI DESIGN WINS - Co cited strong customer engagement and expanding design activity in data center and AI applications

Company press release: ID:nGNX2rj8Fw

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.31 bln
$1.26 bln (20 Analysts)
Q4 Adjusted EPS
Beat
$0.57
$0.51 (20 Analysts)
Q4 EPS
$0.21
Q4 Adjusted Net Income
$327.30 mln
Q4 Net Income
$116.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "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 $90.00, about 12.6% below its May 6 closing price of $102.92

The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 31 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)