Microchip falls after earnings as it forecasts lower margins
Earnings results
- EPS beat by 3.2%
Adjusted profit per share was $0.97 versus $0.94 expected.
- Revenue
$1.62 billion, up 42% from a year earlier.
- Guidance
Adjusted gross margin of 64% to 65%, down from 66.5% last quarter.
Earnings and the stock move
Microchip fell after projecting a December-quarter adjusted gross margin of 64% to 65%, below the September quarter’s 66.5%. September sales cleared the company’s forecast, but $53 million came from items management says will not recur. Management also flagged longer supply lead times.
Q2 FY2027 earnings recap
Microchip Technology fell about 11% during trading on November 6, 2026, after its earnings report pointed to a lower share of sales left after production costs.
- Sales reached $1.62 billion in the September quarter, up 42% from a year earlier and above the high end of management’s forecast.
- Adjusted earnings per share, or profit per share, were $0.97 versus $0.94 expected. Reported profit was $0.68 per share.
- Microchip expects December-quarter sales of $1.57 billion to $1.64 billion. The midpoint is about 1% below the September quarter.
- About $53 million in September sales came from items the company says will not repeat in December.
- Management said it is taking longer to get supplies and is working to secure more silicon wafers. That matters because it can limit how quickly orders turn into shipments.
- Microchip doubled its tally of designs that use its latest data-center switches and signal boosters from 12 at the end of June to 24 by the report date.
Watch whether Microchip can ship more chips and restore margins as it adds capacity.
Financials and technicals
Charts through Nov 5, 2026. The session move above may reflect later news.
Technical setup and risks
Thursday closed near $65 before earnings. A return to the $74–75 area would recover much of Thursday’s drop. A close below Thursday’s $64 low would leave the stock below that session’s range.
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