Microchip Technology Incorporated earnings overview

MCHP FY2026 Q3 · Calendar Q1 2026

Microchip Technology Incorporated

Microchip Technology delivered a Q3 FY2026 beat with revenue of $1.186 billion (up 4% sequentially) and non-GAAP gross margin of 60.5%, driven by data-center networking, FPGA, licensing, and automotive Ethernet growth. The company raised March-quarter guidance to $1.26 billion with 60.5-61.5% gross margin, announced three Gen 6 PCIe switch design wins (one projected to generate over $100 million in 2027), and disclosed a strategic Hyundai collaboration on 10BASE-T1S automotive Ethernet. Despite the operational beat, the stock traded down 4.5% on an abnormal basis post-report and drifted 14.5% lower in subsequent sessions, suggesting investors focused on cyclical and debt-leverage concerns rather than the headline numbers. Management's bullish score rose to 85 from 68 the prior quarter, and guidance sentiment shifted from maintained to raised.