Here's What to Expect From Microchip Technology's Next Earnings Report

MCHP +0.93%

Founded in 1989, Chandler, Arizona-based Microchip Technology Incorporated (MCHP) develops and manufactures microcontrollers, memory, analog, and interface products for embedded control systems. The company has a market cap of $40.7 billion and is expected to release its Q3 2026 earnings on Thursday, Feb. 5.

Ahead of the event, analysts expect the company to generate a profit of $0.30 per share on a diluted basis, up 130.8% from $0.13 per share in the year-ago quarter. The company has surpassed or met Wall Street’s EPS estimates in two of its last four quarters, while missing on two other occasions.

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For the current year, analysts expect the company to report EPS of $1.11, up 9.9% from $1.01 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 88.3% year over year (YoY) to $2.09 in fiscal 2027.

Shares of MCHP have surged 33.4% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 17.7% rise and the Technology Select Sector SPDR ETF’s (XLK) 25% return during the same time frame.

On Jan. 6, MCHP stock closed up more than 11% after raising its Q3 2026 net sales forecast to $1.19 billion from a previous estimate of $1.11 billion to $1.15 billion, above the consensus of $1.14 billion. CEO Steve Sanghi struck a confident tone on Microchip’s outlook, pointing to a widespread rebound across key end markets as inventory corrections ease and fresh customer designs begin ramping into production.

Even in a holiday-shortened December quarter, bookings surged, and that strength carried forward, with the March quarter opening with a significantly stronger backlog than the prior quarter, underscoring that demand is not just stabilizing, but accelerating. This move, along with the CEO’s optimistic commentary, raised investor confidence, as an upward revision to the sales forecast indicates a well-run company with healthy finances.

Analysts’ consensus opinion on the stock is somewhat bullish, with a “Moderate Buy” rating overall. Among the 24 analysts covering the stock, 16 are recommending a “Strong Buy,” one recommends a “Moderate Buy,” and the remaining seven analysts suggest a “Hold” for the stock. MCHP’s average analyst price target is $77.30, indicating an upside of 2.8% from the current levels.

On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com