Microchip Technology (MCHP) reported a 29% increase in shares over the past year, underperforming against the Zacks Computer & Technology sector’s 30.6% return. As of the end of Q2 fiscal 2026, the company’s channel inventory was 199 days, with underutilization amounts at $51 million. MCHP anticipates inventory levels between 195 to 200 days for the end of the September quarter.
Microchip is expanding its portfolio, recently launching the JANPTX family of non-hermetic plastic Transient Voltage Suppressor devices for aerospace and defense applications, and custom software designed for its MEC1723 Embedded Controller, enhancing NVIDIA DGX Spark personal AI supercomputers. For Q3 fiscal 2026, MCHP anticipates net sales of $1.185 billion, surpassing its prior guidance of $1.109 – $1.149 billion, with a year-over-year increase of 15.5% expected. The company is scheduled to report these results on February 5, 2026.
The ongoing restructuring plan includes closing Fab 2 operations and transferring technologies to facilities in Gresham, OR, and Colorado Springs, CO. This plan aims to save $25 million annually. The Zacks Consensus Estimate for Q3 fiscal 2026 earnings is set at 40 cents per share, marking a 100% year-over-year increase.
