Microchip (NasdaqGS:MCHP) Q3 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsBlayne Curtis - Managing Director and Equity ResearchChris Casso - Managing DirectorEric Bjornholt - CFOHarlan Sur - Managing DirectorJames Schneider - PresidentMatthew Prisco - VP in Equity ResearchMatthias Kaestner - VP of Networking and Connectivity Business UnitsSteve Sanghi - Executive ChairConference Call ParticipantsJoseph Moore - Semiconductor Industry AnalystVijay Rakesh - Senior Technology and Semicon ...

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2025. Summary of Consolidated Financial Results (Note 1) Summary of Consolidated Financial Results (Non-GAAP basis) (Note 2) | Three months ended | The year ended | | | | | --- | --- | --- | --- | --- | | December 31, 2025 | December 31, 2025 | | | | | Billion yen | % of revenue | Billion yen | % of revenue | | | Revenue | 350.9 | 100.0 | 1 ...

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE: 6723, "Renesas†), a premier supplier of advanced semiconductor solutions, today announced the difference between its consolidated financial results for the year ended December 31, 2025 (January 1, 2025 to December 31, 2025), which it disclosed on February 5, 2026, and the financial results in the previous period (January 1, 2024 to December 31, 2024). Gross profit for the year ended December 31, 2025, increased slightly year on year due to lowe ...

Key Takeaways Global semiconductor sales surged 29.8% Y/Y to $75.3B in November 2025, per SIA. MCHP, MPWR and MTSI are all set to post quarterly results on Feb. 5 amid strong semiconductor demand.AI, cloud, EV demand and inventory normalization likely fueled industry momentum.Semiconductor companies are likely to have witnessed strong performance in the December-end quarter, driven by solid demand. The industry is continuing its dream run, which is evident from growing semiconductor sales. Citing data compi ...

NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the stocks Jim Cramer discussed, along with market shortages. When a caller called chips and related stocks cyclical, Cramer commented: They are not cyclical. There are particular ones. NXPI is cyclical. On Semi’s cyclical. Texas Instruments is cyclical. Most of the others are not cyclical. Most of them are secular. Those big three are the three that I would say you can’t possibly buy because you have to buy them and then sell them, and I don’t like that. ...

Key Takeaways Germany launches a 3.5B EV subsidy program, retroactive to Jan. 1, 2026, to revive car demand.Subsidies apply to both purchases and leases held for at least 36 months, encouraging long-term adoption.The policy targets households earning 80-90K, aiming to boost adoption among middle-income buyers.Germany has reintroduced a major electric vehicle (EV) subsidy program to revive demand in a highly price-sensitive market after a sharp slowdown in adoption.The program is backed by a €3.5 billion bud ...

Among tech companies, Microchip Technology (MCHP) is one of the more difficult names to decipher. As a developer and manufacturer of microcontrollers, memory and interface products for embedded control systems, Microchip represents one of the important cogs in the broader semiconductor industry. At the same time, investors haven’t exactly been thrilled with MCHP stock and its performance. It’s not that the return is bad, per se. Since the start of the year, MCHP stock has gained over 13%. With a trailing ...

Core Insights - A semiconductor company, Microchip Technology, raised its quarterly sales and profit forecasts, leading to a significant increase in its stock price by 12.2% [1] - Major media companies, Paramount Skydance and Netflix, experienced stock declines of 7.3% and 4.9% respectively, amid ongoing buyout negotiations with Warner Bros. Discovery [1] Semiconductor Industry - Microchip Technology's strong bookings and improved backlog prompted an increase in its quarterly forecast for net sales and adjusted earnings per share [1] - Other semiconductor companies, ON Semiconductor and NXP Semiconductors, also saw stock price increases of 11% and 5.7% respectively following Microchip's positive guidance [1] Media and Entertainment Sector - Paramount Skydance and Netflix's shares fell as they navigated competing offers to acquire Warner Bros. Discovery, with Netflix making a mostly cash offer for the company's film and streaming assets [1] - Paramount is reportedly considering a direct offer to Warner Bros. Discovery shareholders, bypassing the board [1] Airline Industry - Delta Airlines' shares rose 3.6% despite a warning that a government shutdown cost the airline approximately $200 million in pre-tax profit for the current quarter, with strong demand expected to continue [1] - United Airlines also saw a stock increase of 3.9% on the same day [1] Real Estate Investment Trusts (REITs) - Alexandria Real Estate Equities experienced a significant stock decline of 10.1% after its 2026 funds from operations guidance fell short of expectations, along with a 45% cut to its quarterly dividend [1] Other Notable Movements - Vertex Pharmaceuticals' shares increased by 6.9% following an upgrade from Morgan Stanley, driven by optimism around its kidney treatment pipeline [1] - Sandisk's shares fell 5.3% after a period of strong gains, despite being newly added to the S&P 500 [1]

Company Overview - Microchip Technology Incorporated (MCHP) is based in Chandler, Arizona, with a market cap of approximately $29 billion, specializing in smart, connected, and secure embedded control solutions across various global markets [1] - The company offers a diverse product portfolio, including 8-bit, 16-bit, and 32-bit microcontrollers, mixed-signal processors, FPGAs, and power management solutions, serving industries such as automotive, industrial, computing, and communications [2] Stock Performance - MCHP stock has decreased by 30.8% from its 52-week high of $77.20 and has declined 17.8% over the past three months, underperforming the Dow Jones Industrials Average, which rose by 3.8% during the same period [3] - Year-to-date, Microchip Technology's shares have fallen by 6.8%, while the Dow Jones Industrials Average has increased by 11.2%. Over the past 52 weeks, MCHP stock has dropped by 21.6%, compared to a 5.3% return for the Dow [4] Financial Performance - In Q2 2026, Microchip reported an adjusted EPS of $0.35 and revenue of $1.14 billion, which exceeded expectations. However, the stock fell by 5.2% the following day due to weak Q3 guidance, projecting net sales of $1.11 billion to $1.15 billion and an adjusted EPS of $0.34 to $0.40, with the midpoint below analyst expectations [5] Competitive Landscape - Rival NVIDIA Corporation (NVDA) has significantly outperformed MCHP, with its stock climbing nearly 34% year-to-date and 30.1% over the past 52 weeks [6] - Despite MCHP's recent performance challenges, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $74.21, indicating a potential upside of 38.9% from current levels [6]

Core Insights - Microchip Technology Inc. reported strong third-quarter results, indicating improving demand despite customer caution regarding inventory restocking [1][2] - JP Morgan analyst Harlan Sur maintained an Overweight rating with a price target of $77, reflecting confidence in the company's growth trajectory [1] Financial Performance - Revenue for the September quarter reached $1.14 billion, a 6% increase quarter over quarter, surpassing expectations [4] - Gross margin improved to 56.7%, despite an 11-point negative impact from inventory write-downs and underutilization charges [2][4] - Earnings per share (EPS) also exceeded forecasts, although fourth-quarter guidance was below consensus due to delayed customer restocking [5] Market Dynamics - Bookings showed steady improvement throughout the quarter, with October demand surpassing that of September and August [2] - Customers are currently trimming inventories and delaying restocking until early 2026, but Microchip's strong backlog suggests potential revenue growth in the March quarter and beyond [3] Growth Drivers - The company’s product margins have already exceeded the long-term target of 65%, indicating gradual profitability gains [4] - Microchip's expansion into the data center market is expected to be a significant growth driver starting in 2027, contingent on customer adoption and market share growth [4]