CHANDLER (dpa-AFX) - Microchip Technology Incorporated, (MCHP) Tuesday lifted its guidance for third quarter.
Microchip now expects its net sales and earnings per share to be at the high end of its previously provided guidance, representing sequential growth of roughly 1% that exceeds the midpoint of our prior guidance which anticipated a sequential decline in net sales.
The revised December 2025 quarter revenue guidance would represent 12% year-over-year growth.
Microchip previously provided guidance on November 6, 2025 of consolidated net sales to be between $1.109 billion and $1.149 billion. GAAP earnings per share is now expected to be about $0.02, and non-GAAP earnings per share is now expected to be about $0.40. The original guidance for the GAAP loss/earnings per share was between $(0.02) and $0.02, and the original guidance for non-GAAP earnings per share was between $0.34 and $0.40.
Steve Sanghi, Microchip's CEO and President, commented, 'With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call. Our bookings activity has remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter. We are executing on our nine-point recovery plan as well as our strategic initiatives, reducing inventory levels, improving non-GAAP gross margins, operating margins and earnings per share, and making progress towards our long-term business model.'
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