NASDAQ$MCHP

Microchip Technology Inc · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

Microchip reported fiscal Q2 2026 net sales of $1.14B with net income of $41.7M.

Second-quarter net sales were $1.14 billion, down 2% sequentially as inventory correction eased. Net income was $41.7 million; diluted EPS was $0.08. Management cited improving order trends after a prolonged downcycle.

  • Q2 net sales $1.14B.
  • Net income $41.7M; diluted EPS $0.08.
  • Mixed-signal MCU and analog lines showed sequential improvement.
  • Inventory reduction continued across the channel.

Headline financials

Total Revenue

$1.14B

Previous: $1.16B-2.0%
EPS (adj)

$0.08

Previous: $0.14-42.9%
GAAP Gross Margin

55.9%

Previous: 57.4%-2.6%
Non-GAAP Gross Margin

56.7%

Previous: 59.5%-4.7%
GAAP Operating Margin

7.8%

Previous: 12.6%-38.1%
Non-GAAP Operating Margin

24.3%

Previous: 29.3%-17.1%
Non-GAAP Net Margin

17.5%

Previous: 21.5%-18.6%
Quarterly Dividend

$0.46

No prior period
Capital Expenditures

-$54.4M

Previous: -$93.7M+41.9%
Free Cash Flow

-$12.7M

Previous: -$15.3M+17.0%
Net Income

$41.7M

Previous: $78.4M-46.8%
Operating Income

$88.9M

Previous: $147M-39.4%
Gross Profit

$638M

Previous: $669M-4.6%
Cash & Equivalents

$237M

Previous: $286M-17.2%
Total Assets

$14.5B

Previous: $15.6B-7.4%

Revenue & EPS history

Microchip · Revenue · Quarterly

$1.14B

Q2 2026-2%vs Q2 2025
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The release discusses Microchip Technology's outlook for upcoming periods, including capital allocation, operating priorities, and market risks, without relying solely on numeric EPS bridges.

Tailwinds

  • Microchip Technology cites operational execution and demand trends supporting the outlook.
  • Balance sheet and liquidity actions aim to fund growth and returns.

Headwinds

  • Macro, pricing, and input-cost volatility could pressure margins.
  • Segment mix and one-time items may affect quarter-to-quarter comparability.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

+0.9%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+3.3%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+11.2%

Q3 2020

Best reaction

-15.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.1%-2.3%-0.4%
Q3 2026-2.6%+3.5%-17.0%
Q2 2026-5.2%-6.3%+10.9%
Q1 2026-6.7%-0.7%-0.5%
Q4 2025-1.0%-5.2%+11.4%
Q3 2025-2.3%+1.4%+12.5%
Q2 2025-1.0%-2.1%-21.8%
Q1 2025-15.0%-15.9%-7.5%
Q4 2024+0.8%+0.2%+3.2%
Q3 2024-1.0%-2.3%+2.1%
Q2 2024+7.6%+6.0%+19.2%
Q1 2024-7.5%-6.4%-8.8%
Q4 2023-1.4%-4.6%+1.2%
Q3 2023+5.2%+6.6%+1.8%
Q2 2023+5.3%+11.7%+27.5%
Q1 2023+5.9%+3.3%-6.1%
Q4 2022+1.0%-0.8%+2.0%
Q3 2022-7.4%-4.6%-14.3%
Q2 2022+7.5%+3.9%+6.9%
Q1 2022+1.7%+3.3%+7.8%
Q4 2021+2.8%-0.1%+6.7%
Q3 2021+4.0%+8.7%+4.0%
Q2 2021+10.6%+7.6%+27.3%
Q1 2021-6.1%-5.6%+3.9%
Q4 2020+7.1%+2.7%+31.3%
Q3 2020+11.2%+8.9%-9.1%
Q2 2020-4.2%-3.6%-3.1%
Q1 2020+5.7%+5.1%+6.2%
Q4 2019-5.1%-11.2%-11.1%
Q3 2019+8.2%+5.8%+2.3%
Q2 2019+6.3%-0.5%+0.3%
Q1 2019-10.6%-14.0%-15.0%
Q4 2018+3.5%+4.7%+15.2%
Q3 2018-7.4%-9.5%+6.5%
Q2 2018-2.4%-2.2%-7.8%
Q1 2018+4.6%+6.0%+10.1%
Q4 2017+4.1%+4.7%+15.1%
Q3 2017+6.7%+2.5%+6.2%
Q2 2017+6.2%+4.9%+7.1%
Q1 2017+7.2%+7.0%+7.5%
Q4 2016-2.0%
Q3 2016-1.0%
Q2 2016-1.8%
Q1 2016-0.1%
Q4 2015+4.0%
Q3 2015-1.4%
Q2 2015+2.1%
Q1 2015-0.5%
Q4 2014+0.3%
Q3 2014+0.5%
Q2 2014+6.6%
Q1 2014+6.2%
Q4 2013+4.0%
Q3 2013+5.6%
Q2 2013-4.7%
Q1 2013+3.3%
Q4 2011-1.1%
Q4 2012-1.5%
Q3 2012+2.3%
Q2 2012+6.9%
Q1 2012-5.7%
Q3 2011-0.6%
Q4 2009-0.4%
Q2 2011-0.4%
Q1 2011+0.1%
Q4 2008+3.2%
Q4 2010+3.2%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010+2.8%
Q1 2009-0.4%
Q2 2009-0.4%
Q1 2010-0.4%

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