Analyst Consensus ?
ConsensusBuy44 ratings
Bullish3068.2%
Neutral1431.8%
Bearish00.0%
Microchip Technology Incorporated · MCHP · FY2026 Q3 · Calendar Q1 2026
Microchip Beats Q3 FY2026 on Gen 6 PCIe Wins and Automotive Ethernet Growth
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.
Reported After market closeNASDAQTechnology
$38.75B market cap
100quality score
Company 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.…
Earnings scorecard
Reported versus consensus
Reported EPS
$0.44
Consensus $0
EPS surprise
+2.7%
Reported versus consensus
Reported revenue
$1.19B
Consensus $1.18B
Revenue surprise
+0.2%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$71.37Current
$61Low
$95.33Average
$135High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 30, 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 |
|---|---|---|---|---|
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Jul 20, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jul 13, 2026 |
| Cantor Fitzgerald | Overweight | Overweight | Maintain | May 13, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | May 11, 2026 |
| UBS | Buy | Buy | Maintain | May 8, 2026 |
| Truist Securities | Hold | Hold | Maintain | May 8, 2026 |
| Susquehanna | Positive | Positive | Maintain | May 8, 2026 |
| Rosenblatt | Buy | Buy | 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 |
| Citigroup | Buy | Buy | 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 |
| BMO Capital | Outperform | Outperform | Maintain | May 10, 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 $71.37. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Wells Fargo | Joe Quatrochi | $88 | $80.96 | +23.3% | Jul 20, 2026 |
| Barclays | Tom O'Malley | $105 | $99.09 | +47.1% | May 11, 2026 |
| UBS | Analyst unavailable | $130 | $97.97 | +82.1% | May 8, 2026 |
| Needham | Quinn Bolton | $120 | $98.64 | +68.1% | May 8, 2026 |
| Susquehanna | Analyst unavailable | $120 | $99.59 | +68.1% | May 8, 2026 |
| Truist Financial | William Stein | $105 | $98.7 | +47.1% | May 8, 2026 |
| Morgan Stanley | Analyst unavailable | $94 | $99.6 | +31.7% | May 8, 2026 |
| Raymond James | Melissa Fairbanks | $125 | $99.58 | +75.1% | May 8, 2026 |
| Evercore ISI | Mark Lipacis | $117 | $101.14 | +63.9% | May 8, 2026 |
| Mizuho Securities | Analyst unavailable | $112 | $101.58 | +56.9% | May 8, 2026 |
| KeyBanc | Analyst unavailable | $135 | $101.58 | +89.2% | May 8, 2026 |
| Jefferies | Analyst unavailable | $120 | $101.58 | +68.1% | May 8, 2026 |
| Barclays | Tom O'Malley | $80 | $80.75 | +12.1% | Feb 12, 2026 |
| Truist Financial | Analyst unavailable | $69 | $76.86 | -3.3% | Feb 10, 2026 |
| Stifel Nicolaus | Tore Svanberg | $90 | $75.58 | +26.1% | Feb 6, 2026 |
| Cantor Fitzgerald | Matthew Prisco | $100 | $75.54 | +40.1% | Feb 6, 2026 |
| Truist Financial | Analyst unavailable | $68 | $75.28 | -4.7% | Feb 6, 2026 |
| KeyBanc | John Vinh | $85 | $75.96 | +19.1% | Feb 6, 2026 |
| Evercore ISI | Mark Lipacis | $93 | $74.21 | +30.3% | Feb 6, 2026 |
| Mizuho Securities | Analyst unavailable | $90 | $78.04 | +26.1% | Feb 6, 2026 |
| Needham | Analyst unavailable | $84 | $78.04 | +17.7% | Feb 6, 2026 |
| Industrial Alliance Securities | Analyst unavailable | $100 | $77.12 | +40.1% | Feb 2, 2026 |
| UBS | Analyst unavailable | $95 | $74.7 | +33.1% | Jan 26, 2026 |
| Susquehanna | Analyst unavailable | $90 | $74.91 | +26.1% | Jan 22, 2026 |
| BNP Paribas | David O'Connor | $90 | $76.2 | +26.1% | Jan 22, 2026 |
| UBS | Analyst unavailable | $78 | $75.51 | +9.3% | Jan 21, 2026 |
| Piper Sandler | Analyst unavailable | $85 | $74.68 | +19.1% | Jan 15, 2026 |
| Mizuho Securities | Analyst unavailable | $83 | $74.06 | +16.3% | Jan 9, 2026 |
| Morgan Stanley | Analyst unavailable | $69 | $74.87 | -3.3% | Jan 7, 2026 |
| Stifel Nicolaus | Tore Svanberg | $80 | $67.06 | +12.1% | Jan 6, 2026 |
| Wolfe Research | Analyst unavailable | $85 | $67.06 | +19.1% | Jan 6, 2026 |
| Mizuho Securities | Vijay Rakesh | $80 | $67.2 | +12.1% | Dec 16, 2025 |
| Cantor Fitzgerald | CJ Muse | $85 | $67.2 | +19.1% | Dec 16, 2025 |
| Needham | Analyst unavailable | $75 | $63.99 | +5.1% | Dec 4, 2025 |
| Truist Financial | William Stein | $60 | $56.28 | -15.9% | Nov 9, 2025 |
| Cantor Fitzgerald | Analyst unavailable | $65 | $55.34 | -8.9% | Nov 7, 2025 |
| Morgan Stanley | Joseph Moore | $68 | $60.25 | -4.7% | Nov 4, 2025 |
| Needham | Quinn Bolton | $77 | $62.97 | +7.9% | Aug 8, 2025 |
| Raymond James | Melissa Fairbanks | $75 | $61.87 | +5.1% | Aug 8, 2025 |
| Cantor Fitzgerald | Matthew Prisco | $70 | $68.02 | -1.9% | Jun 18, 2025 |
| Evercore ISI | Mark Lipacis | $83 | $67.93 | +16.3% | Jun 12, 2025 |
| Truist Financial | Analyst unavailable | $43 | $39.43 | -39.8% | Apr 21, 2025 |
| Mizuho Securities | Analyst unavailable | $68 | $58.14 | -4.7% | Mar 4, 2025 |
| Morgan Stanley | Joseph Moore | $58 | $52.6 | -18.7% | Feb 4, 2025 |
| KeyBanc | Weston Twigg | $90 | $70.31 | +26.1% | Dec 3, 2024 |
| Truist Financial | William Stein | $71 | $74.4 | -0.5% | Nov 6, 2024 |
| Needham | Rajvindra Gill | $85 | $74.4 | +19.1% | Nov 6, 2024 |
| Evercore ISI | Mark Lipacis | $95 | $74.4 | +33.1% | Nov 6, 2024 |
| KeyBanc | Weston Twigg | $95 | $74.4 | +33.1% | Nov 6, 2024 |
| Raymond James | Melissa Fairbanks | $95 | $74.4 | +33.1% | Nov 6, 2024 |
| Mizuho Securities | Vijay Rakesh | $95 | $76.58 | +33.1% | Oct 18, 2024 |
| Truist Financial | William Stein | $80 | $77.01 | +12.1% | Sep 23, 2024 |
| Citigroup | Christopher Danely | $92 | $80.28 | +28.9% | Aug 21, 2024 |
| Rosenblatt Securities | Hans Mosesmann | $90 | $74.67 | +26.1% | Aug 5, 2024 |
| Mizuho Securities | Vijay Rakesh | $115 | $98.14 | +61.1% | May 23, 2024 |
| Piper Sandler | Harsh Kumar | $90 | $93.02 | +26.1% | May 7, 2024 |
| Needham | Rajvindra Gill | $100 | $93.76 | +40.1% | May 7, 2024 |
| Mizuho Securities | Vijay Rakesh | $85 | $93.76 | +19.1% | May 7, 2024 |
| Evercore ISI | Mark Lipacis | $106 | $85.7 | +48.5% | Apr 15, 2024 |
| Wolfe Research | Chris Caso | $105 | $83.34 | +47.1% | Jan 17, 2024 |
| Credit Suisse | Analyst unavailable | $85 | $76.94 | +19.1% | Nov 16, 2022 |
| Piper Sandler | Harsh Kumar | $80 | $59.46 | +12.1% | Nov 3, 2022 |
| Goldman Sachs | Toshiya Hari | $61 | $65.31 | -14.5% | Jul 27, 2022 |
| Stifel Nicolaus | Tore Svanberg | $75 | $59.45 | +5.1% | Jun 28, 2022 |
| BMO Capital | Ambrish Srivastava | $85 | $68.25 | +19.1% | May 11, 2022 |
| Wells Fargo | Gary Mobley | $80 | $72.92 | +12.1% | Feb 4, 2022 |
| B.Riley Financial | Craig Ellis | $105 | $72.92 | +47.1% | Feb 4, 2022 |
| Needham | Rajvindra Gill | $105 | $72.92 | +47.1% | Feb 4, 2022 |
| Cowen & Co. | Matt Ramsay | $78 | $72.92 | +9.3% | Feb 4, 2022 |
| BMO Capital | Ambrish Srivastava | $95 | $72.92 | +33.1% | Feb 4, 2022 |
| Citigroup | Christopher Danely | $78 | $72.92 | +9.3% | Feb 4, 2022 |
| Raymond James | Chris Caso | $110 | $85.22 | +54.1% | Nov 5, 2021 |
| Credit Suisse | John Pitzer | $120 | $85.22 | +68.1% | Nov 5, 2021 |
| Piper Sandler | Harsh Kumar | $100 | $85.22 | +40.1% | Nov 5, 2021 |
| Morgan Stanley | Joseph Moore | $100 | $85.22 | +40.1% | Nov 5, 2021 |
| KeyBanc | John Vinh | $92.5 | $72.38 | +29.6% | Jul 6, 2021 |
Track every rating change on MCHP the moment it posts. Free to start.
Start freeMarket reaction
event-close to next-session close
Stock move
-2.6%
Event window
SPY move
+1.9%
Same window
Abnormal move
-4.5%
Stock minus SPY
Volume
2.2×
Versus trailing sessions
Subsequent drift
-14.5%
Up to 20 sessions
MCHPSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
Q3 FY2026 net sales of $1.186 billion exceeded the high end of guidance and consensus ($1.183B), with EPS of $0.44 beating the $0.43 estimate by 2.7%. Non-GAAP gross margin expanded to 60.5% (from 57-59% guided the prior quarter) and operating margin reached 28.5%. The company raised March-quarter guidance to $1.26B plus or minus $0.02B with non-GAAP gross margin of 60.5-61.5%, implying 6.2% sequential growth versus typical seasonal softness. Three Gen 6 PCIe switch design wins were announced, with one expected to generate over $100 million in 2027 revenue. A strategic collaboration with Hyundai Motor Group on 10BASE-T1S Ethernet for next-generation vehicle platforms was disclosed. Underutilization charges of approximately $50 million were highlighted as a potential $50 million gross-margin upside as fab utilization ramps. The prior quarter's inventory write-offs and underutilization charges totaled $122.8 million, suggesting meaningful margin improvement as those pressures abate.
Guidance delta
Guidance was raised from the prior quarter. The December-quarter guide (from Q2 FY2026) projected a 1% sequential revenue decline with non-GAAP gross margin of 57-59%. The March-quarter guide (from Q3 FY2026) was raised to $1.26 billion plus or minus $0.02B, implying 6.2% sequential growth, with non-GAAP gross margin of 60.5-61.5%. Capex outlook remained stable at or below $100 million for FY2026. Guidance sentiment shifted from maintained to raised.
Key takeaways
- Q3 net sales of $1.186B beat consensus ($1.183B) and exceeded the high end of guidance, up 4% sequentially.
- Non-GAAP gross margin improved to 60.5% with operating margin at 28.5%, reflecting easing inventory and utilization charges.
- Three Gen 6 PCIe switch design wins announced; one projected to generate over $100M in 2027 revenue.
- Strategic Hyundai collaboration on 10BASE-T1S automotive Ethernet expands the automotive growth vector.
- March-quarter guidance raised to $1.26B with 60.5-61.5% gross margin, implying 6.2% sequential growth against typical seasonal softness.
- Underutilization charges of approximately $50M present a potential $50M gross-margin upside as fab utilization ramps.
Management priorities
- Ramp Gen 6 PCIe switch production and begin design-win deliveries in H2 2026 and 2027.
- Expand automotive Ethernet offerings, including the Hyundai collaboration on 10BASE-T1S.
- Continue debt reduction while maintaining the dividend and selective buybacks.
- Invest in R&D for ASA MotionLink and other high-margin connectivity products.
- Maintain capex at or below $100 million for FY2026.
- Improve fab utilization to unlock gross-margin upside from current underutilization charges.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-30T02:32:01.584555+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-30T02:32:01.581595+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 . For educational purposes only; not investment advice.