Microchip Technology Provides Q3 Fiscal 2026 Business Update

Core Viewpoint - Microchip Technology Incorporated anticipates net sales for the third quarter of fiscal 2026 to reach approximately $1,185 million, exceeding previous guidance [1] Group 1: Financial Performance - The expected net sales of $1,185 million is significantly higher than the original guidance of $1,109 million to $1,149 million provided on November 6, 2025, and the revised guidance of being on the high end of the original range given on December 2, 2025 [1] - Strong bookings activity was reported for the December quarter, indicating robust demand despite the holiday season [2] Group 2: Recovery Plan and Strategic Initiatives - The company has made substantial progress on its nine-point recovery plan, which includes inventory correction and ramping up production in factories [2] - A significant reduction in internal inventory is expected to lower inventory write-offs, contributing positively to financial performance [2] - The company is optimistic about the calendar year 2026, anticipating benefits from the successful execution of its recovery plan [3] Group 3: Market Position and Operations - Microchip Technology is recognized as a leading provider of smart, connected, and secure embedded control solutions, serving various markets including industrial, automotive, consumer, aerospace, and defense [7] - The company is headquartered in Chandler, Arizona, and emphasizes innovative design solutions to address challenges in emerging technologies [7]