Core Insights - Microchip Technology Incorporated reported strong fiscal third quarter results, with net sales of $1.186 billion, reflecting a 4% sequential growth and a 15.6% year-over-year increase, surpassing original guidance [2][4][6] - The company achieved significant margin expansion, with non-GAAP gross margins increasing from 52% in March 2025 to 60.5% in the December quarter, driven by operational improvements and inventory reduction efforts [2][4][8] - The outlook for the March quarter anticipates net sales of approximately $1.260 billion, indicating a sequential growth of 6.2% and a year-over-year growth of 29.8% at the midpoint [2][4][10] Financial Performance - Net sales for the three months ended December 31, 2025, were $1.186 billion, up from $1.026 billion in the same quarter of the previous year [4][6] - GAAP gross profit was reported at $706.9 million, with a gross margin of 59.6%, while non-GAAP gross profit reached $717.4 million, with a gross margin of 60.5% [4][5] - Operating income on a GAAP basis was $151.7 million (12.8% of net sales), while non-GAAP operating income was $337.8 million (28.5% of net sales) [4][5][8] Cash Flow and Debt Management - The company reduced net debt by $26 million during the quarter, with operating cash flow improving to cover debt obligations and dividend payments [2][4] - Approximately $246.1 million was returned to common stockholders through dividends in the December quarter, with a quarterly dividend of 45.5 cents per share declared for the March quarter [4][9] Market Dynamics and Strategy - Strong momentum in the connectivity business is noted, particularly in automotive and industrial markets, supported by modernization cycles [2][4] - The company is focused on improving operational efficiency and ramping up manufacturing capacity, with expectations for further gross margin improvements as inventory normalizes [2][4] Future Guidance - The midpoint of net sales guidance for the March 2026 quarter is set at $1.260 billion, projecting a sequential growth of 6.2% and a year-over-year growth of 29.8% [4][10] - The company remains optimistic about sustained sequential growth and enhancing shareholder value while maintaining a disciplined approach amid evolving macroeconomic conditions [2][4]

Core Insights - The semiconductor industry is experiencing strong performance, with global sales increasing by 29.8% year over year to $75.3 billion in November 2025, driven by solid demand across various sectors [1][10] Industry Performance - Semiconductor companies are benefiting from robust sales growth across a wide range of products, including microprocessors, memory chips, and advanced driver assistance systems [3] - Demand from hyperscalers, cloud service providers, and AI companies is driving the rise in microchip sales, leading to increased capital expenditure on more powerful chips [4] - Inventory normalization among industrial and automotive customers is contributing to improved sales and margins, aided by easing inflation [5] Upcoming Earnings Reports - Microchip Technology, Monolithic Power Systems, and MACOM Technology Solutions are set to report their financial results on February 5, 2026 [2][10] - Microchip Technology is expected to report revenues of $1.19 billion for Q3 fiscal 2026, reflecting a 15.5% increase year over year, with earnings estimated at 43 cents per share, a 115% increase [8] - Monolithic Power Systems anticipates revenues of $740.72 million for Q4 2025, a 19.2% increase year over year, with earnings estimated at $4.73 per share, a 15.6% increase [13] - MACOM Technology Solutions expects revenues of $268.91 million for Q1 fiscal 2026, a 23.3% increase year over year, with earnings estimated at 99 cents per share, a 25.3% increase [17] Company-Specific Insights - Microchip Technology's performance is likely supported by improving inventory levels, with inventory days decreasing from 266 days to 199 days [9] - Monolithic Power Systems is benefiting from steady demand in enterprise data and automotive markets, particularly from AI server applications [14] - MACOM Technology Solutions is experiencing strong demand in the Data Center business, with expectations of sequential revenue growth supported by strong bookings [18] - The Industrial & Defense markets are also expected to positively impact MACOM's performance, with revenues in this segment rising by 7% sequentially [19]

Core Insights - Microchip Technology (MCHP) is expected to report third-quarter fiscal 2026 results on February 5, 2026, with net sales projected between $1.109 billion and $1.149 billion, indicating a sequential decline of approximately 1% at the midpoint, while year-over-year growth is estimated at 15.5% [1][2] Financial Performance - Non-GAAP earnings per share are anticipated to range from 34 cents to 40 cents, with the consensus estimate at 43 cents per share, reflecting a significant year-over-year growth of 115% [2] - MCHP has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 0.00% [2] Inventory and Production - The company has successfully reduced its inventory levels from a peak of 266 days to 199 days over three quarters, which is expected to continue positively impacting the upcoming results [3] - Distributor inventory levels were reduced to 27 days in the second quarter of fiscal 2026, and MCHP has scaled back its capital expenditures while maintaining sufficient manufacturing capacity to support production growth [4] Market Demand - Strong demand for Gen 4 and Gen 5 data center products, driven by inventory corrections among customers and increased AI data center build-outs, is anticipated to positively influence MCHP's third-quarter results [5][9] - The company is benefiting from strong design wins in high-growth sectors such as industrial, aerospace, and automotive, which is expected to enhance revenue performance [6] Earnings Prediction - The earnings model indicates a high likelihood of an earnings beat for MCHP, supported by a positive Earnings ESP of +1.34% and a Zacks Rank of 1 (Strong Buy) [7][8]

Microchip’s MCPF1525 power module with PMBus™ delivers 25A DC-DC power, stackable up to 200ACHANDLER, Ariz., Feb. 03, 2026 (GLOBE NEWSWIRE) -- The increasing AI and high-performance computing workloads demand power solutions that combine efficiency, reliability and scalability. Integrated power modules help streamline design, reduce energy use and deliver the stable performance required for advanced data centers. Microchip Technology (Nasdaq: MCHP) today announces the launch of the MCPF1525 Power Module, a ...

Quick Read NXP Semiconductors (NXPI) reports Q4 2025 earnings today. Wall Street expects $3.31 EPS on $3.30B revenue. NXP’s automotive segment represents 58% of revenue. Analysts watch whether results exceed $1.90B. NXP shares gained 6.1% over three months versus the semiconductor sector’s 17.6% return. Investors rethink 'hands off' investing and decide to start making real money NXP Semiconductors (NASDAQ: NXPI) reports Q4 2025 earnings today after market close at 4:10 PM ET. Wall Street expects ...

Core Insights - Microchip Technology has introduced the PIC32CM PL10 MCUs, expanding its PIC32C family of Arm Cortex-M0+ core devices, targeting applications in industrial control, building automation, consumer appliances, power tools, and sensor-based systems [1][4] Product Features - The PL10 MCUs include a Peripheral Touch Controller (PTC) and a 12-bit Analog-to-Digital Converter (ADC) for enhanced performance in touch applications and improved noise immunity for analog signal measurement [2] - On-chip Core Independent Peripherals (CIPs) are designed to offload time-critical tasks from the CPU, enhancing real-time performance and power efficiency [2] - The PL10 family supports the Cortex Microcontroller Software Interface Standard (CMSIS), facilitating modular and reusable application code to speed up development [2] Development Ecosystem - The PL10 MCUs are supported by Microchip's MPLAB development ecosystem and are compatible with industry-standard tools and integrated development environments (IDEs) such as Microsoft Visual Studio Code, IAR Systems, Arm Keil, SEGGER, Zephyr, and MikroElektronika [3] - AI-driven resources like the MPLAB AI Coding Assistant provide context-aware code generation and real-time product insights to streamline development [3] Market Positioning - The PL10 MCUs are designed to help engineers transition to higher performance microcontrollers while retaining the development experience and cost structure of existing 8-bit solutions [4] - Microchip plans to introduce a range of new microcontrollers over the next 12-18 months, covering entry-level to AI-capable devices, reinforcing its commitment to a comprehensive MCU portfolio [4] Compliance and Performance - The PL10 family complies with various industry safety standards, including ISO 26262 for functional safety in automotive applications [4] - These MCUs operate from 1.8 to 5.5 volts, suitable for high-noise environments in automotive, IoT, industrial automation, and consumer electronics [4] - The integrated Multi-Voltage I/O (MVIO) allows simultaneous connections to devices operating at different voltage levels without the need for external level shifters [4] Availability - The PIC32CM PL10 MCUs are available for purchase directly from Microchip or through authorized distributors [6]

New Touch controllers bring reliable touch sensing to both very small and very large display formats in modern automotive applicationsCHANDLER, Ariz., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Microchip Technology (Nasdaq: MCHP) has again expanded its maXTouch® M1 family of touchscreen controllers to bring reliable and secure touch detection to an even greater range of automotive displays, now covering free-form widescreen format displays up to 42 inches down to small compact screens in the 2 to 5 inch range. The A ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Microchip Technology (MCHP) - Microchip Technology currently holds a Momentum Style Score of B, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - Over the past week, MCHP shares increased by 0.01%, while the Zacks Semiconductor - Analog and Mixed industry declined by 0.32% [6] - In the last month, MCHP's price rose by 15.05%, outperforming the industry's 11.4% [6] - Over the past quarter, MCHP shares increased by 19.69%, and over the last year, they gained 32.49%, compared to the S&P 500's increases of 2.92% and 14.29%, respectively [7] Trading Volume - MCHP's average 20-day trading volume is 7,572,598 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 9 earnings estimates for MCHP have been revised upwards, with no downward revisions, raising the consensus estimate from $1.43 to $1.51 [10] - For the next fiscal year, 8 estimates have also moved higher, indicating positive sentiment around the company's earnings potential [10] Conclusion - Given the strong performance metrics and positive earnings outlook, MCHP is recommended as a solid momentum pick for investors [12]

Core Viewpoint - Investors are encouraged to consider Microchip Technology (MCHP) due to solid improvements in earnings estimates and positive short-term price momentum [1] Earnings Estimate Revisions - There is a rising trend in earnings estimate revisions driven by growing analyst optimism regarding the earnings prospects of Microchip Technology, which is expected to positively impact its stock price [2] - The consensus earnings estimate for the current quarter is $0.41 per share, reflecting a year-over-year increase of +105.0%, with six estimates moving higher in the last 30 days and no negative revisions, resulting in a 9.61% increase in the Zacks Consensus Estimate [6] - For the full year, the earnings estimate is $1.51 per share, indicating a +15.3% change from the previous year, with a similar trend of six upward revisions and no negative changes [7] Zacks Rank - Microchip Technology has achieved a Zacks Rank 2 (Buy) due to favorable estimate revisions, which is a reliable rating tool that helps investors leverage earnings estimate trends for investment decisions [8] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8] Stock Performance - Microchip Technology shares have increased by 12% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [9]

Core Insights - Microchip Technology has launched a new family of 600V gate drivers to enhance high-voltage power management solutions, featuring 12 devices in various configurations [1][3] - The new gate drivers are designed for efficient performance and fast switching, supporting current drive options from 600 mA to 4.5 A, and are compatible with 3.3V logic [2] - These devices are aimed at addressing the growing demand for reliable motor control and power conversion systems in both industrial and consumer applications [3] Product Features - The 600V gate drivers include features such as enhanced noise immunity, Schmitt-triggered inputs, and internal deadtime to protect MOSFETs, ensuring reliable operation in high-noise environments [2] - The drivers support industry trends like electrification of industrial systems and the growth of renewable energy, catering to the need for compact and efficient motor control solutions [3] Development and Support - The gate drivers are supported by simulation models that help engineers mitigate design risks prior to prototyping [5] - The 600V gate driver portfolio is now available for purchase in production quantities through Microchip or authorized distributors [6] Company Overview - Microchip Technology Inc. is a semiconductor supplier focused on providing innovative design solutions across various markets, including industrial, automotive, and consumer sectors [8]