Analyst Consensus ?
ConsensusBuy44 ratings
Bullish3068.2%
Neutral1431.8%
Bearish00.0%
Microchip Technology Incorporated · MCHP · FY2025 Q2 · Calendar Q4 2024
Microchip Maintains Guidance as Destocking and New Products Compete
The supplied analysis offers partial support for a recovery thesis: new product launches and design-ins could support longer-term growth, but elevated inventory, weak demand, underutilization and funding uncertainty keep the near-term evidence mixed.
Reported After market closeNASDAQTechnology
$40.10B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.46
Consensus $0.43
EPS surprise
+5.9%
Reported versus consensus
Reported revenue
$1.16B
Consensus $1.15B
Revenue surprise
+1.0%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-1.8%
Event window
SPY move
+2.5%
Same window
Abnormal move
-4.3%
Stock minus SPY
Volume
2.3×
Versus trailing sessions
Subsequent drift
-21.0%
Up to 20 sessions
MCHPSPY benchmark
Ask FN2 about MCHP FY2025 Q2
Transcript, numbers and history already loaded
Why did MCHP fall 1.8% after beating EPS estimates in FY2025 Q2?What changed in MCHP's guidance and outlook in FY2025 Q2?Give me the bull and bear case for MCHP after FY2025 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior-quarter analysis, the current analysis shifts to a more cautious operating picture: inventory days increased, Q2 sales declined, and underutilization and cybersecurity costs were highlighted. At the same time, Microchip emphasized new product ramps, aerospace and defense demand, AI-focused data-center opportunities, and continued capital returns.
Guidance delta
Maintained. The analysis says December-quarter guidance remained within a range, with non-GAAP gross margin expected at 57%-59%.
Key takeaways
- Q2 sales declined sequentially, while margins slightly exceeded guidance after a one-time legal-settlement benefit.
- Inventory remains elevated, pointing to a prolonged channel-destocking cycle.
- New dsPIC33A and PIC64 products, plus aerospace, defense and AI-focused data-center opportunities, are the principal growth initiatives in the analysis.
- Capital returns continued, while CHIPS Act funding and underutilization remain important execution variables.
Management priorities
- Ramp the dsPIC33A and PIC64 product families.
- Pursue design-ins in aerospace, defense and AI-focused data-center segments.
- Finalize the CHIPS Act agreement and deploy related capital investments.
- Continue returning adjusted free cash flow through dividends and share buybacks.
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$73.85Current
$61Low
$95.1Average
$135High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 17, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| BMO Capital | Outperform | Outperform | Maintain | Aug 21, 2026 |
| Cantor Fitzgerald | Overweight | Overweight | Maintain | Aug 17, 2026 |
| UBS | Buy | Buy | Maintain | Aug 7, 2026 |
| Truist Securities | Hold | Hold | Maintain | Aug 7, 2026 |
| Rosenblatt | Buy | Buy | Maintain | Aug 7, 2026 |
| Citigroup | Buy | Buy | Maintain | Aug 7, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Jul 20, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jul 13, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | May 11, 2026 |
| Susquehanna | Positive | Positive | Maintain | May 8, 2026 |
| Needham | Buy | Buy | Maintain | May 8, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | May 8, 2026 |
| Evercore ISI Group | Outperform | Outperform | Maintain | May 8, 2026 |
| Mizuho | Outperform | Outperform | Maintain | Feb 6, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Jan 21, 2026 |
| Piper Sandler | Overweight | Overweight | Maintain | Jan 15, 2026 |
| B. Riley Securities | Buy | Buy | Maintain | Jan 12, 2026 |
| Stifel | Buy | Buy | Maintain | Jan 6, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jan 6, 2026 |
| Raymond James | Strong Buy | Strong Buy | Maintain | Aug 8, 2025 |
| Keybanc | Overweight | Overweight | Maintain | Jul 8, 2025 |
| Goldman Sachs | Neutral | Neutral | Maintain | Jan 10, 2025 |
| Jefferies | Buy | Buy | Maintain | Nov 6, 2024 |
| Wolfe Research | Outperform | Peer Perform | Upgrade | Jan 18, 2024 |
| Credit Suisse | Neutral | Neutral | Maintain | Feb 3, 2023 |
| Cowen & Co. | Outperform | Outperform | Maintain | Aug 3, 2022 |
| Longbow Research | Buy | Neutral | Upgrade | Mar 23, 2021 |
| B. Riley FBR | Buy | Buy | Maintain | Feb 5, 2021 |
| Vertical Research | Neutral | Buy | Downgrade | Feb 3, 2021 |
| Suntrust Robinson Humphrey | Buy | Buy | Maintain | Jun 3, 2020 |
| CFRA | Hold | Hold | Maintain | May 8, 2020 |
| B. Riley | Buy | Buy | Maintain | Nov 6, 2019 |
| Bank of America | Neutral | Buy | Downgrade | Sep 17, 2018 |
| Nomura | Buy | Buy | Maintain | Aug 10, 2018 |
| PiperJaffray | Overweight | Overweight | Maintain | Jul 27, 2018 |
| Argus | Buy | Buy | Maintain | Oct 6, 2017 |
| Summit Redstone Partners | Buy | Hold | Upgrade | Apr 4, 2017 |
| Summit Insights Group | Buy | Hold | Upgrade | Apr 4, 2017 |
| CLSA | Buy | Buy | Maintain | May 17, 2016 |
| Stifel Nicolaus | Buy | Buy | Maintain | Aug 4, 2015 |
| Drexel Hamilton | Hold | Buy | Downgrade | Oct 10, 2014 |
| Stephens & Co. | Equal Weight | Overweight | Downgrade | Nov 18, 2013 |
| ISI Group | Strong Buy | Buy | Upgrade | Mar 4, 2013 |
| Miller Tabak | Neutral | Neutral | Maintain | Oct 16, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $73.85. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Truist Financial | Analyst unavailable | $90 | $84.81 | +21.9% | Aug 7, 2026 |
| UBS | Analyst unavailable | $120 | $74.36 | +62.5% | Aug 7, 2026 |
| Jefferies | Analyst unavailable | $100 | $74.36 | +35.4% | Aug 7, 2026 |
| Wells Fargo | Joe Quatrochi | $88 | $80.96 | +19.2% | Jul 20, 2026 |
| Barclays | Tom O'Malley | $105 | $99.09 | +42.2% | May 11, 2026 |
| UBS | Analyst unavailable | $130 | $97.97 | +76.0% | May 8, 2026 |
| Needham | Quinn Bolton | $120 | $98.64 | +62.5% | May 8, 2026 |
| Susquehanna | Analyst unavailable | $120 | $99.59 | +62.5% | May 8, 2026 |
| Truist Financial | William Stein | $105 | $98.7 | +42.2% | May 8, 2026 |
| Morgan Stanley | Analyst unavailable | $94 | $99.6 | +27.3% | May 8, 2026 |
| Raymond James | Melissa Fairbanks | $125 | $99.58 | +69.3% | May 8, 2026 |
| Evercore ISI | Mark Lipacis | $117 | $101.14 | +58.4% | May 8, 2026 |
| Mizuho Securities | Analyst unavailable | $112 | $101.58 | +51.7% | May 8, 2026 |
| KeyBanc | Analyst unavailable | $135 | $101.58 | +82.8% | May 8, 2026 |
| Jefferies | Analyst unavailable | $120 | $101.58 | +62.5% | May 8, 2026 |
| Barclays | Tom O'Malley | $80 | $80.75 | +8.3% | Feb 12, 2026 |
| Truist Financial | Analyst unavailable | $69 | $76.86 | -6.6% | Feb 10, 2026 |
| Stifel Nicolaus | Tore Svanberg | $90 | $75.58 | +21.9% | Feb 6, 2026 |
| Cantor Fitzgerald | Matthew Prisco | $100 | $75.54 | +35.4% | Feb 6, 2026 |
| Truist Financial | Analyst unavailable | $68 | $75.28 | -7.9% | Feb 6, 2026 |
| KeyBanc | John Vinh | $85 | $75.96 | +15.1% | Feb 6, 2026 |
| Evercore ISI | Mark Lipacis | $93 | $74.21 | +25.9% | Feb 6, 2026 |
| Mizuho Securities | Analyst unavailable | $90 | $78.04 | +21.9% | Feb 6, 2026 |
| Needham | Analyst unavailable | $84 | $78.04 | +13.7% | Feb 6, 2026 |
| Industrial Alliance Securities | Analyst unavailable | $100 | $77.12 | +35.4% | Feb 2, 2026 |
| UBS | Analyst unavailable | $95 | $74.7 | +28.6% | Jan 26, 2026 |
| Susquehanna | Analyst unavailable | $90 | $74.91 | +21.9% | Jan 22, 2026 |
| BNP Paribas | David O'Connor | $90 | $76.2 | +21.9% | Jan 22, 2026 |
| UBS | Analyst unavailable | $78 | $75.51 | +5.6% | Jan 21, 2026 |
| Piper Sandler | Analyst unavailable | $85 | $74.68 | +15.1% | Jan 15, 2026 |
| Mizuho Securities | Analyst unavailable | $83 | $74.06 | +12.4% | Jan 9, 2026 |
| Morgan Stanley | Analyst unavailable | $69 | $74.87 | -6.6% | Jan 7, 2026 |
| Stifel Nicolaus | Tore Svanberg | $80 | $67.06 | +8.3% | Jan 6, 2026 |
| Wolfe Research | Analyst unavailable | $85 | $67.06 | +15.1% | Jan 6, 2026 |
| Mizuho Securities | Vijay Rakesh | $80 | $67.2 | +8.3% | Dec 16, 2025 |
| Cantor Fitzgerald | CJ Muse | $85 | $67.2 | +15.1% | Dec 16, 2025 |
| Needham | Analyst unavailable | $75 | $63.99 | +1.6% | Dec 4, 2025 |
| Truist Financial | William Stein | $60 | $56.28 | -18.8% | Nov 9, 2025 |
| Cantor Fitzgerald | Analyst unavailable | $65 | $55.34 | -12.0% | Nov 7, 2025 |
| Morgan Stanley | Joseph Moore | $68 | $60.25 | -7.9% | Nov 4, 2025 |
| Needham | Quinn Bolton | $77 | $62.97 | +4.3% | Aug 8, 2025 |
| Raymond James | Melissa Fairbanks | $75 | $61.87 | +1.6% | Aug 8, 2025 |
| Cantor Fitzgerald | Matthew Prisco | $70 | $68.02 | -5.2% | Jun 18, 2025 |
| Evercore ISI | Mark Lipacis | $83 | $67.93 | +12.4% | Jun 12, 2025 |
| Truist Financial | Analyst unavailable | $43 | $39.43 | -41.8% | Apr 21, 2025 |
| Mizuho Securities | Analyst unavailable | $68 | $58.14 | -7.9% | Mar 4, 2025 |
| Morgan Stanley | Joseph Moore | $58 | $52.6 | -21.5% | Feb 4, 2025 |
| KeyBanc | Weston Twigg | $90 | $70.31 | +21.9% | Dec 3, 2024 |
| Truist Financial | William Stein | $71 | $74.4 | -3.9% | Nov 6, 2024 |
| Needham | Rajvindra Gill | $85 | $74.4 | +15.1% | Nov 6, 2024 |
| Evercore ISI | Mark Lipacis | $95 | $74.4 | +28.6% | Nov 6, 2024 |
| KeyBanc | Weston Twigg | $95 | $74.4 | +28.6% | Nov 6, 2024 |
| Raymond James | Melissa Fairbanks | $95 | $74.4 | +28.6% | Nov 6, 2024 |
| Mizuho Securities | Vijay Rakesh | $95 | $76.58 | +28.6% | Oct 18, 2024 |
| Truist Financial | William Stein | $80 | $77.01 | +8.3% | Sep 23, 2024 |
| Citigroup | Christopher Danely | $92 | $80.28 | +24.6% | Aug 21, 2024 |
| Rosenblatt Securities | Hans Mosesmann | $90 | $74.67 | +21.9% | Aug 5, 2024 |
| Mizuho Securities | Vijay Rakesh | $115 | $98.14 | +55.7% | May 23, 2024 |
| Piper Sandler | Harsh Kumar | $90 | $93.02 | +21.9% | May 7, 2024 |
| Needham | Rajvindra Gill | $100 | $93.76 | +35.4% | May 7, 2024 |
| Mizuho Securities | Vijay Rakesh | $85 | $93.76 | +15.1% | May 7, 2024 |
| Evercore ISI | Mark Lipacis | $106 | $85.7 | +43.5% | Apr 15, 2024 |
| Wolfe Research | Chris Caso | $105 | $83.34 | +42.2% | Jan 17, 2024 |
| Credit Suisse | Analyst unavailable | $85 | $76.94 | +15.1% | Nov 16, 2022 |
| Piper Sandler | Harsh Kumar | $80 | $59.46 | +8.3% | Nov 3, 2022 |
| Goldman Sachs | Toshiya Hari | $61 | $65.31 | -17.4% | Jul 27, 2022 |
| Stifel Nicolaus | Tore Svanberg | $75 | $59.45 | +1.6% | Jun 28, 2022 |
| BMO Capital | Ambrish Srivastava | $85 | $68.25 | +15.1% | May 11, 2022 |
| Wells Fargo | Gary Mobley | $80 | $72.92 | +8.3% | Feb 4, 2022 |
| B.Riley Financial | Craig Ellis | $105 | $72.92 | +42.2% | Feb 4, 2022 |
| Needham | Rajvindra Gill | $105 | $72.92 | +42.2% | Feb 4, 2022 |
| Cowen & Co. | Matt Ramsay | $78 | $72.92 | +5.6% | Feb 4, 2022 |
| BMO Capital | Ambrish Srivastava | $95 | $72.92 | +28.6% | Feb 4, 2022 |
| Citigroup | Christopher Danely | $78 | $72.92 | +5.6% | Feb 4, 2022 |
| Raymond James | Chris Caso | $110 | $85.22 | +49.0% | Nov 5, 2021 |
| Credit Suisse | John Pitzer | $120 | $85.22 | +62.5% | Nov 5, 2021 |
| Piper Sandler | Harsh Kumar | $100 | $85.22 | +35.4% | Nov 5, 2021 |
| Morgan Stanley | Joseph Moore | $100 | $85.22 | +35.4% | Nov 5, 2021 |
| KeyBanc | John Vinh | $92.5 | $72.38 | +25.3% | Jul 6, 2021 |
Track every rating change on MCHP the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationMicrochip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components.…
Historical context
All MCHP earningsTechnology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| WIT Wipro Limited | FY2027 Q2 · Calendar Q4 2026 | -25.0% | +3.9% | Wipro: AI pipeline expands as Q3 guidance stays narrow |
| TSM Taiwan Semiconductor Manufacturing Company Limited | FY2026 Q3 · Calendar Q4 2026 | +3.4% | -1.8% | TSMC beats Q3 guidance as AI demand drives fab expansion |
| ERIC Telefonaktiebolaget LM Ericsson (publ) | FY2026 Q3 · Calendar Q4 2026 | +28.6% | +11.8% | Ericsson Q3: 7% organic growth, resilient margins and AI-led demand |
| ASML ASML Holding N.V. | FY2026 Q3 · Calendar Q4 2026 | +20.4% | -3.9% | ASML: Record Q3, strong AI demand and broader capacity plans |
Latest beats and misses
Who reports nextBeat on EPS
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One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2024-11-10T18:38:36.707185+00:00
- Polygon adjusted daily market bars · 2026-10-17T12:20:41.956388+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-17T12:20:41.953588+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-17. For educational purposes only; not investment advice.