- Microchip Technology (MCHP, Financial) raises Q1 FY2026 revenue guidance to $1.045-$1.070 billion from $1.025-$1.070 billion.
- GAAP loss per share forecast improves to $(0.11)-$(0.07), while non-GAAP EPS outlook increases to $0.22-$0.26 from previous $0.18-$0.26.
- May bookings are anticipated to be the highest in two years, indicating strong business performance.
Microchip Technology (MCHP) has revised its financial outlook for the first quarter of fiscal year 2026, reflecting stronger than expected business momentum. The company now anticipates consolidated net sales ranging from $1.045 billion to $1.070 billion, an increase from the previous guidance of $1.025 billion to $1.070 billion. This adjustment indicates a more significant lower-end revenue expectation.
Additionally, Microchip has adjusted its earnings projections. The non-GAAP earnings per share (EPS) guidance has been raised to $0.22-$0.26, improving the previous bottom range from $0.18, while leaving the high end unchanged. The forecast for GAAP loss per share has been updated to $(0.11)-$(0.07), a better outlook from the original $(0.15)-$(0.07).
CEO Steve Sanghi commented that the company's business is performing beyond previous expectations, with May's bookings on track to be the highest in the past two years. This renewed activity is a promising sign of potential recovery, driven by strategic initiatives and effective inventory management. The combination of business improvements and inventory reduction initiatives bolsters confidence in achieving the long-term business model goals.
As Microchip Technology continues to navigate the semiconductor market landscape, these updates signify a positive outlook, showing that the company is effectively managing challenges while capturing new growth opportunities. This positive trajectory in earnings guidance suggests a potential upswing in business activity and market demand.
