Net sales of $1.140 billion, increased 6.0% sequentially and declined 2.0% from the year ago quarter. The midpoint of our guidance provided on August 7, 2025 was net sales of $1.130 billion.On a GAAP basis: gross profit of 55.9%; operating income of $88.9 million and 7.8% of net sales; net income attributable to common stockholders of $13.9 million; and EPS of $0.03 per diluted share. Our guidance provided on August 7, 2025 was for GAAP EPS loss per diluted share of $0.04 to $0.01.On a Non-GAAP basis: gross ...

Core Insights - Microchip Technology has launched the Model Context Protocol (MCP) Server, an AI interface designed to connect with compatible AI tools and large language models (LLMs) to provide context for answering queries [1][3] - The MCP Server allows users to retrieve verified and up-to-date Microchip public data, including product specifications, datasheets, inventory, pricing, and lead times through simple conversational queries [1][2] Group 1 - The MCP Server is built on MCP streamable HTTP standards, delivering context-aware and JSON-encoded responses optimized for AI clients such as Copilots, AI chatbots, LLM-based IDEs, and enterprise AI agents [2] - This platform supports a wide range of applications and integrates Microchip public data directly into development environments and intelligent assistants [2] Group 2 - The launch of the MCP Server reflects Microchip's commitment to advancing digital transformation and AI enablement across enterprise ecosystems [4] - The MCP Server is publicly available at no cost to users, facilitating instant access to verified product information within AI platforms [4]

Core Insights - Microchip Technology Incorporated is a significant player in the semiconductor industry, focusing on microcontroller, mixed-signal, analog, and Flash-IP solutions [1] - The company is set to release its quarterly earnings on November 6, 2025, with analysts closely monitoring its performance metrics [1] Earnings Projections - Wall Street analysts project an earnings per share (EPS) of $0.33, representing a year-over-year decline of 28.3% [2][6] - The company has guided for EPS to range between $0.34 and $0.37, indicating potential variance from analyst expectations [2] Revenue Expectations - Revenue projections for the quarter are approximately $1.13 billion, reflecting a 2.7% year-over-year decline [3][6] - Microchip anticipates net sales to range between $1.11 billion and $1.15 billion, suggesting a sequential growth of 5.1% [3] Growth Drivers - The anticipated growth is driven by improving inventory levels, increased direct shipments, and strong design wins in sectors such as industrial, aerospace, and AI [3] Financial Metrics - The price-to-sales ratio is about 7.75, indicating investors are willing to pay $7.75 for every dollar of sales [4] - The enterprise value to sales ratio stands at approximately 8.91, reflecting the company's valuation in relation to its sales [4] - The debt-to-equity ratio is about 0.80, suggesting a balanced approach to leveraging debt for growth [5] - The current ratio of approximately 2.31 indicates a strong ability to cover short-term liabilities with short-term assets [5]

Core Insights - Ceva, Inc. has announced a long-term partnership with Microchip Technology Inc. to integrate Ceva's NeuPro family of Neural Processing Units (NPUs) into Microchip's products, enhancing AI capabilities across various applications [1][2][3] Company Overview - Ceva is a leading licensor of silicon and software IP for the Smart Edge, focusing on wireless communications, sensing, and Edge AI technologies [5][6] - Microchip is a broadline supplier of semiconductors, committed to simplifying innovative design through comprehensive system solutions [1][3] Partnership Details - The collaboration aims to embed Ceva's NeuPro NPUs in Microchip's products, facilitating the deployment of scalable AI in a wide range of devices [1][2] - Microchip's selection of Ceva's NeuPro family indicates a strategic commitment to deliver AI as a native capability in billions of devices, reinforcing its leadership in various markets including industrial, data center, aerospace, automotive, consumer, and communications [2][3] Technology and Innovation - Ceva's NeuPro NPU family is designed for high efficiency and low latency, optimized for inference workloads, and suitable for applications from ultra-low-power microcontrollers to advanced computing platforms [4] - The NeuPro Studio, a unified AI Software Development Kit (SDK), will be integrated into Microchip's SDK, providing a comprehensive developer experience for training, importing, optimizing, and deploying AI models [3][4] Market Impact - The partnership reflects a broader industry trend towards making AI foundational across devices, systems, and infrastructure, enabling richer and more intelligent user experiences [4]

Core Insights - Microchip Technology (MCHP) is scheduled to report its second-quarter fiscal 2026 results on November 6, with expected net sales between $1.110 billion and $1.150 billion, indicating a sequential growth of approximately 5.1% [1][7] - The Zacks Consensus Estimate for revenues in the second quarter is $1.13 billion, reflecting a year-over-year decline of 2.74% [1][2] - Anticipated non-GAAP earnings per share (EPS) are projected to be between 30 and 36 cents, with the consensus mark for earnings also at 33 cents, representing a year-over-year decline of 28.26% [1][2] Financial Performance Expectations - Microchip's earnings have historically beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.23% [2] - The company has been facing macroeconomic challenges but is expected to show improved inventory levels, which have decreased from 214 days in the first quarter to an anticipated range of 195 to 200 days by the end of the second quarter [2][3] Revenue and Margin Drivers - Improved inventory levels are expected to positively impact gross margins in the upcoming quarter, with revenues benefiting from inventory corrections at distributors and increased direct customer shipments [3][7] - The company has secured strong design wins in high-growth sectors such as industrial, aerospace, and automotive, which are likely to contribute to revenue growth in the reported quarter [4][7] Earnings Outlook - According to the Zacks model, Microchip has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating a neutral outlook for earnings performance [5]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: HP Inc (NYSE:HPQ) - HPQ has a dividend yield of 4.29% [7] - JP Morgan analyst Samik Chatterjee downgraded HPQ from Overweight to Neutral with a price target of $30 on Oct. 22, 2025, with an accuracy rate of 79% [7] - HSBC analyst Stephen Bersey upgraded HPQ from Hold to Buy, raising the price target from $28.1 to $30 on Oct. 14, 2025, with an accuracy rate of 60% [7] - Recent news includes HPQ receiving its first industrial shipments of HPQ ENDURA+ batteries on Oct. 30 [7] Group 2: Skyworks Solutions Inc (NASDAQ:SWKS) - SWKS has a dividend yield of 3.71% [7] - UBS analyst Timothy Arcuri maintained a Neutral rating and raised the price target from $75 to $85 on Oct. 29, 2025, with an accuracy rate of 83% [7] - Benchmark analyst Cody Acree reiterated a Hold rating on Oct. 29, 2025, with an accuracy rate of 85% [7] - Recent news includes a merger announcement between Qorvo, Inc. and Skyworks Solutions at approximately $22 billion on Oct. 28 [7] Group 3: Microchip Technology Inc (NASDAQ:MCHP) - MCHP has a dividend yield of 2.92% [7] - Citigroup analyst Asiya Merchant reinstated a Neutral rating with a price target of $4.5 on Aug. 18, 2025, with an accuracy rate of 90% [7] - Morgan Stanley analyst Erik Woodring maintained an Underweight rating and cut the price target from $10 to $8 on Oct. 30, 2025, with an accuracy rate of 76% [7] - Recent news includes Microchip Technology posting better-than-expected quarterly earnings on Aug. 7 [7]

CHANDLER, Ariz., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Communication interfaces are essential for space applications as they ensure reliable and efficient data transmission to enable real-time control, system integration and enhanced error detection. They support scalable designs and contribute to the redundancy and fault tolerance necessary for the successful execution of space missions. Microchip Technology (Nasdaq: MCHP) today announces the release of its Radiation-Tolerant (RT) ATA6571RT CAN FD Transceiver, ...

Investment Rating - The report indicates a positive outlook for the semiconductor industry, suggesting a potential better than expected Q4 2023, with preferred picks including Texas Instruments, Renesas, Infineon, and STMicroelectronics [2][3]. Core Insights - The semiconductor industry is experiencing a recovery phase, with a slight increase in inventories and supportive pricing dynamics observed for the first time since May 2023 [2][3]. - Pricing across all product categories has shown an increase, with an average of 2% month-over-month and 15% year-over-year, indicating a positive trend in demand and product mix [3][4]. - The report highlights a broad-based recovery in inventory levels, with most companies either flat or up in inventory units across various products [4]. Summary by Sections Inventory Trends - MCU inventories have shown a 1% month-over-month increase after a 2% decline last month, with a notable 7% month-over-month increase in Capacitors [3]. - Overall inventory levels are stable, with destocking in MCUs slowing down, suggesting a transition to normalized inventory levels [10][18]. Pricing Dynamics - The average year-over-year pricing is up 9%, driven by significant increases in specific categories such as NXP's Wireless & RF and Microprocessors, which increased by 78% and 18% respectively [8]. - Pricing trends are supportive, with all product categories experiencing increases, reinforcing the positive sentiment in the market [4][8]. Company Observations - The report includes heatmaps that indicate pricing was up 10% year-over-year in October compared to 8% in September, suggesting a consistent upward trend across categories [4]. - The analysis of company-specific data shows that most companies are experiencing either stable or increasing inventory levels, indicating a healthy recovery across the semiconductor sector [4][18].

Company Overview - Microchip Technology Incorporated (MCHP) is based in Chandler, Arizona, and specializes in developing, manufacturing, and selling smart, connected, and secure embedded control solutions with a market cap of $33.8 billion [1]. Stock Performance - MCHP has significantly underperformed the broader market, with stock prices gaining 8.2% in 2025 but plunging 17.9% over the past 52 weeks, compared to the S&P 500 Index's 16% gains year-to-date and 17.4% returns over the past year [2]. - The stock also lagged behind the First Trust Nasdaq Semiconductor ETF (FTXL), which surged 44.9% year-to-date and gained 38% over the past 52 weeks [3]. Financial Results - Following the release of lackluster Q1 results on August 7, MCHP's stock prices dropped 6.6%. The company's net sales for the quarter fell 13.4% year-over-year to $1.1 billion, and it reported a net loss of $46.4 million, down from a net income of $129.3 million in the same quarter last year [4]. Earnings Expectations - For the full fiscal 2026, analysts expect MCHP to deliver an adjusted EPS of $1.18, reflecting a 16.8% year-over-year increase. The company has a mixed earnings surprise history, surpassing bottom-line estimates three times in the past four quarters but missing projections once [5]. - The consensus rating for MCHP is "Moderate Buy," with 16 "Strong Buys," one "Moderate Buy," and eight "Holds" among the 25 analysts covering the stock [5]. Analyst Coverage - On September 15, Wells Fargo analyst Joe Quatrochi initiated coverage on MCHP with an "Equal-Weight" rating and set a price target of $60. The mean price target of $77.50 suggests a 24.9% upside potential, while the street-high target of $100 represents a 61.1% premium to current price levels [7].

Core Insights - Microchip Technology Incorporated (NASDAQ:MCHP) is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - The company has a strong cash flow and consistent dividends, making it attractive to investors [2] Financial Performance - In fiscal 2026, Microchip reported a revenue increase of 10.8% sequentially, reaching approximately $1.08 billion, exceeding its revised guidance [3] - The company achieved a significant reduction in inventory, decreasing total inventory by $124.4 million during the June quarter [3] - Operating cash flow was reported at $275.6 million, with free cash flow at $257.7 million [4] Shareholder Returns - Microchip aims to return all adjusted free cash flow to shareholders, emphasizing long-term value creation [5] - The company has maintained a dividend program since December 6, 2002, with dividends paid for 92 consecutive quarters and 83 increases during this period [5] - The current quarterly dividend is $0.455 per share, yielding 2.94% as of October 30 [5] Market Exposure - The largest market exposure for Microchip is in industrial machinery, accounting for about 43% of revenue, followed by the automotive sector at 18%, totaling approximately 61% [2]