Analyst Consensus ?
ConsensusBuy44 ratings
Bullish3068.2%
Neutral1431.8%
Bearish00.0%
Microchip Technology Incorporated · MCHP · FY2027 Q2 · Calendar Q4 2026
Microchip’s growth accelerates, but capacity limits temper near-term outlook
The call supports a mixed view: strong demand and design wins across industrial, data-center and aerospace markets are driving growth, but capacity limits and nonrecurring revenue complicate the near-term trajectory.
Why did MCHP fall 13.9% after beating EPS estimates in FY2027 Q2?
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Reported After market closeNASDAQTechnology
$35.21B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.97
Consensus $0.94
EPS surprise
+3.6%
Reported versus consensus
Reported revenue
$1.62B
Consensus $1.61B
Revenue surprise
+0.8%
Reported versus consensus
Market reaction
close-to-close (session unavailable)
Stock move
-13.9%
Event window
SPY move
-4.4%
Same window
Abnormal move
-9.5%
Stock minus SPY
Volume
3.8×
Versus trailing sessions
Subsequent drift
0.0%
Up to 20 sessions
MCHPSPY benchmark
Ask FN2 about MCHP FY2027 Q2
Choose a question to continue your research
Why did MCHP fall 13.9% after beating EPS estimates in FY2027 Q2?What changed in MCHP's guidance and outlook in FY2027 Q2?Give me the bull and bear case for MCHP after FY2027 Q2 earnings.
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Transcript intelligence
What changed
Management described a strong quarter led by industrial and data-center demand, alongside double-digit aerospace and defense growth. However, extended foundry and OSAT lead times have constrained supply, and the December-quarter outlook was moderated to a slight sales decline. The quarter also included nonrecurring licensing and pricing revenue.
Guidance delta
Management lowered the December-quarter outlook to a slight sales decline amid seasonal weakness, supply constraints and the absence of some nonrecurring items. It reiterated a long-term non-GAAP gross-margin target of 65%.
Key takeaways
- Industrial and data-center demand, with additional strength in aerospace and defense, supported substantial year-over-year sales growth.
- Lead times have widened across product lines as external foundry and OSAT capacity remains constrained.
- Nonrecurring licensing and pricing items boosted the reported quarter but are not expected to recur.
- Hailo and VORAGO add to longer-term AI-edge and aerospace and defense opportunities, with modest near-term revenue contribution.
Management priorities
- Expand capacity and reduce supply constraints through planned capital investment.
- Develop data-center products and pursue design wins across industrial and aerospace markets.
- Ramp Hailo AI accelerator products and integrate the acquired businesses.
- Reduce the net-debt-to-EBITDA ratio while maintaining the dividend at its current level.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$55.81Current
$61Low
$95.1Average
$135High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Nov 6, 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 |
|---|---|---|---|---|
| B. Riley Securities | Buy | Buy | Maintain | Oct 22, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Oct 20, 2026 |
| TD Cowen | Hold | Hold | Maintain | Oct 19, 2026 |
| 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 |
| 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 |
| 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 $55.81. 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 | +61.3% | Aug 7, 2026 |
| UBS | Analyst unavailable | $120 | $74.36 | +115.0% | Aug 7, 2026 |
| Jefferies | Analyst unavailable | $100 | $74.36 | +79.2% | Aug 7, 2026 |
| Wells Fargo | Joe Quatrochi | $88 | $80.96 | +57.7% | Jul 20, 2026 |
| Barclays | Tom O'Malley | $105 | $99.09 | +88.1% | May 11, 2026 |
| UBS | Analyst unavailable | $130 | $97.97 | +132.9% | May 8, 2026 |
| Needham | Quinn Bolton | $120 | $98.64 | +115.0% | May 8, 2026 |
| Susquehanna | Analyst unavailable | $120 | $99.59 | +115.0% | May 8, 2026 |
| Truist Financial | William Stein | $105 | $98.7 | +88.1% | May 8, 2026 |
| Morgan Stanley | Analyst unavailable | $94 | $99.6 | +68.4% | May 8, 2026 |
| Raymond James | Melissa Fairbanks | $125 | $99.58 | +124.0% | May 8, 2026 |
| Evercore ISI | Mark Lipacis | $117 | $101.14 | +109.6% | May 8, 2026 |
| Mizuho Securities | Analyst unavailable | $112 | $101.58 | +100.7% | May 8, 2026 |
| KeyBanc | Analyst unavailable | $135 | $101.58 | +141.9% | May 8, 2026 |
| Jefferies | Analyst unavailable | $120 | $101.58 | +115.0% | May 8, 2026 |
| Barclays | Tom O'Malley | $80 | $80.75 | +43.3% | Feb 12, 2026 |
| Truist Financial | Analyst unavailable | $69 | $76.86 | +23.6% | Feb 10, 2026 |
| Stifel Nicolaus | Tore Svanberg | $90 | $75.58 | +61.3% | Feb 6, 2026 |
| Cantor Fitzgerald | Matthew Prisco | $100 | $75.54 | +79.2% | Feb 6, 2026 |
| Truist Financial | Analyst unavailable | $68 | $75.28 | +21.8% | Feb 6, 2026 |
| KeyBanc | John Vinh | $85 | $75.96 | +52.3% | Feb 6, 2026 |
| Evercore ISI | Mark Lipacis | $93 | $74.21 | +66.6% | Feb 6, 2026 |
| Mizuho Securities | Analyst unavailable | $90 | $78.04 | +61.3% | Feb 6, 2026 |
| Needham | Analyst unavailable | $84 | $78.04 | +50.5% | Feb 6, 2026 |
| Industrial Alliance Securities | Analyst unavailable | $100 | $77.12 | +79.2% | Feb 2, 2026 |
| UBS | Analyst unavailable | $95 | $74.7 | +70.2% | Jan 26, 2026 |
| Susquehanna | Analyst unavailable | $90 | $74.91 | +61.3% | Jan 22, 2026 |
| BNP Paribas | David O'Connor | $90 | $76.2 | +61.3% | Jan 22, 2026 |
| UBS | Analyst unavailable | $78 | $75.51 | +39.8% | Jan 21, 2026 |
| Piper Sandler | Analyst unavailable | $85 | $74.68 | +52.3% | Jan 15, 2026 |
| Mizuho Securities | Analyst unavailable | $83 | $74.06 | +48.7% | Jan 9, 2026 |
| Morgan Stanley | Analyst unavailable | $69 | $74.87 | +23.6% | Jan 7, 2026 |
| Stifel Nicolaus | Tore Svanberg | $80 | $67.06 | +43.3% | Jan 6, 2026 |
| Wolfe Research | Analyst unavailable | $85 | $67.06 | +52.3% | Jan 6, 2026 |
| Mizuho Securities | Vijay Rakesh | $80 | $67.2 | +43.3% | Dec 16, 2025 |
| Cantor Fitzgerald | CJ Muse | $85 | $67.2 | +52.3% | Dec 16, 2025 |
| Needham | Analyst unavailable | $75 | $63.99 | +34.4% | Dec 4, 2025 |
| Truist Financial | William Stein | $60 | $56.28 | +7.5% | Nov 9, 2025 |
| Cantor Fitzgerald | Analyst unavailable | $65 | $55.34 | +16.5% | Nov 7, 2025 |
| Morgan Stanley | Joseph Moore | $68 | $60.25 | +21.8% | Nov 4, 2025 |
| Needham | Quinn Bolton | $77 | $62.97 | +38.0% | Aug 8, 2025 |
| Raymond James | Melissa Fairbanks | $75 | $61.87 | +34.4% | Aug 8, 2025 |
| Cantor Fitzgerald | Matthew Prisco | $70 | $68.02 | +25.4% | Jun 18, 2025 |
| Evercore ISI | Mark Lipacis | $83 | $67.93 | +48.7% | Jun 12, 2025 |
| Truist Financial | Analyst unavailable | $43 | $39.43 | -23.0% | Apr 21, 2025 |
| Mizuho Securities | Analyst unavailable | $68 | $58.14 | +21.8% | Mar 4, 2025 |
| Morgan Stanley | Joseph Moore | $58 | $52.6 | +3.9% | Feb 4, 2025 |
| KeyBanc | Weston Twigg | $90 | $70.31 | +61.3% | Dec 3, 2024 |
| Truist Financial | William Stein | $71 | $74.4 | +27.2% | Nov 6, 2024 |
| Needham | Rajvindra Gill | $85 | $74.4 | +52.3% | Nov 6, 2024 |
| Evercore ISI | Mark Lipacis | $95 | $74.4 | +70.2% | Nov 6, 2024 |
| KeyBanc | Weston Twigg | $95 | $74.4 | +70.2% | Nov 6, 2024 |
| Raymond James | Melissa Fairbanks | $95 | $74.4 | +70.2% | Nov 6, 2024 |
| Mizuho Securities | Vijay Rakesh | $95 | $76.58 | +70.2% | Oct 18, 2024 |
| Truist Financial | William Stein | $80 | $77.01 | +43.3% | Sep 23, 2024 |
| Citigroup | Christopher Danely | $92 | $80.28 | +64.8% | Aug 21, 2024 |
| Rosenblatt Securities | Hans Mosesmann | $90 | $74.67 | +61.3% | Aug 5, 2024 |
| Mizuho Securities | Vijay Rakesh | $115 | $98.14 | +106.1% | May 23, 2024 |
| Piper Sandler | Harsh Kumar | $90 | $93.02 | +61.3% | May 7, 2024 |
| Needham | Rajvindra Gill | $100 | $93.76 | +79.2% | May 7, 2024 |
| Mizuho Securities | Vijay Rakesh | $85 | $93.76 | +52.3% | May 7, 2024 |
| Evercore ISI | Mark Lipacis | $106 | $85.7 | +89.9% | Apr 15, 2024 |
| Wolfe Research | Chris Caso | $105 | $83.34 | +88.1% | Jan 17, 2024 |
| Credit Suisse | Analyst unavailable | $85 | $76.94 | +52.3% | Nov 16, 2022 |
| Piper Sandler | Harsh Kumar | $80 | $59.46 | +43.3% | Nov 3, 2022 |
| Goldman Sachs | Toshiya Hari | $61 | $65.31 | +9.3% | Jul 27, 2022 |
| Stifel Nicolaus | Tore Svanberg | $75 | $59.45 | +34.4% | Jun 28, 2022 |
| BMO Capital | Ambrish Srivastava | $85 | $68.25 | +52.3% | May 11, 2022 |
| Wells Fargo | Gary Mobley | $80 | $72.92 | +43.3% | Feb 4, 2022 |
| B.Riley Financial | Craig Ellis | $105 | $72.92 | +88.1% | Feb 4, 2022 |
| Needham | Rajvindra Gill | $105 | $72.92 | +88.1% | Feb 4, 2022 |
| Cowen & Co. | Matt Ramsay | $78 | $72.92 | +39.8% | Feb 4, 2022 |
| BMO Capital | Ambrish Srivastava | $95 | $72.92 | +70.2% | Feb 4, 2022 |
| Citigroup | Christopher Danely | $78 | $72.92 | +39.8% | Feb 4, 2022 |
| Raymond James | Chris Caso | $110 | $85.22 | +97.1% | Nov 5, 2021 |
| Credit Suisse | John Pitzer | $120 | $85.22 | +115.0% | Nov 5, 2021 |
| Piper Sandler | Harsh Kumar | $100 | $85.22 | +79.2% | Nov 5, 2021 |
| Morgan Stanley | Joseph Moore | $100 | $85.22 | +79.2% | Nov 5, 2021 |
| KeyBanc | John Vinh | $92.5 | $72.38 | +65.7% | 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 |
|---|---|---|---|---|
| VRSK Verisk Analytics, Inc. | FY2026 Q3 · Calendar Q4 2026 | +2.1% | +6.9% | Verisk Q3: Subscription Growth Offsets Contractor and Weather Headwinds |
| IONQ IonQ, Inc. | FY2026 Q3 · Calendar Q4 2026 | +17.0% | -10.5% | IonQ reports record Q3 revenue and raises its 2026 outlook |
| ARW Arrow Electronics, Inc. | FY2026 Q3 · Calendar Q4 2026 | +22.9% | -12.6% | Arrow’s record Q3 reflects broad demand, with inventory and mix risks to watch |
| EPAM EPAM Systems, Inc. | FY2026 Q3 · Calendar Q4 2026 | +2.9% | +20.6% | EPAM Raises AI-Native Revenue Target After Q3 Beat; North America Still Flat |
| IREN IREN Limited | FY2027 Q1 · Calendar Q4 2026 | +14.4% | -17.0% | IREN pairs rapid AI cloud growth with a lower FY2027 CapEx plan |
| MTSI MACOM Technology Solutions Holdings, Inc. | FY2026 Q4 · Calendar Q4 2026 | +4.5% | -18.4% | MACOM enters FY2027 with strong data-center demand and a capacity buildout |
Latest beats and misses
Who reports nextBeat on EPS
- FNFFY2026 Q3 · November 5, 20260.0% EPS+6.6% move
- MTDFY2026 Q3 · November 5, 2026+3.6% EPS+4.8% move
- IAGFY2026 Q3 · November 5, 2026+16.7% EPS+4.6% move
- GMABFY2026 Q3 · November 5, 2026+55.6% EPS-4.3% move
- STEFY2027 Q2 · November 4, 2026+9.7% EPS+2.5% move
- IRMFY2026 Q3 · November 5, 2026+4.6% EPS-11.1% move
Missed on EPS
- CPTFY2026 Q3 · November 5, 2026-27.2% EPS-3.1% move
- VMRKFY2026 Q3 · November 4, 2026-425.6% EPS+2.4% move
- NTRAFY2026 Q3 · November 5, 2026-49.3% EPS-15.2% move
- TIGOFY2026 Q3 · November 5, 2026-40.8% EPS+2.6% move
- UHALFY2027 Q2 · November 4, 2026-15.4% EPS-3.2% move
- LAMRFY2026 Q3 · November 5, 2026-3.6% EPS-0.8% move
Get the MCHP recap when the next report posts
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 · 2026-11-06T07:15:01.413642+00:00
- FN2 earnings calendar · 2026-11-06T01:23:16.275024+00:00
- Polygon adjusted daily market bars · 2026-11-06T08:00:51.779613+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-06T08:00:51.776898+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 2026-11-06. For educational purposes only; not investment advice.