MCHP's Q1 earnings and sales beat estimates despite steep yearly declines, with Q2 guidance signaling sequential growth ahead.
Microchip Technology Incorporated (NASDAQ:MCHP ) Q1 2026 Earnings Conference Call August 7, 2025 5:00 PM ET Company Participants O - Corporate Participant James Eric Bjornholt - Senior Corporate Vice President & CF Richard J. Simoncic - Chief Operating Officer Stephen Sanghi - CEO, President & Chair of the Board Conference Call Participants Blayne Peter Curtis - Jefferies LLC, Research Division Christopher Caso - Wolfe Research, LLC Christopher Adam Jackson Rolland - Susquehanna Financial Group, LLLP, Research Division Christopher Brett Danely - Citigroup Inc., Research Division Harlan L.
The headline numbers for Microchip Tech (MCHP) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Microchip Technology (MCHP) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.53 per share a year ago.
MCHP eyes fiscal Q1 revenue up to $1.07B as inventory correction, direct shipments, and design wins drive demand.
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Besides Wall Street's top-and-bottom-line estimates for Microchip Tech (MCHP), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2025.
Microchip Tech (MCHP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Microchip is undergoing major restructuring, including factory closures, workforce reductions, and renegotiated supply contracts, to address excess inventory and improve margins. Despite a strong CEO and strategic pivot toward AI and connectivity, near-term revenue growth will be muted due to ongoing inventory destocking. Valuation is currently tight, with the stock trading near fair value; recent peer results suggest limited upside despite improving business conditions.
Here is how Microchip Technology (MCHP) and Advanced Energy Industries (AEIS) have performed compared to their sector so far this year.
MCHP jumps 34% on new product launches, but high inventory and weak demand keep its outlook restrained.
Microchip is performing better than management expected when it hosted its investor call on May 8, with higher-than-expected bookings, Chief Executive Steve Sanghi said.