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Microchip Lifts Q3 Sales Outlook to About $1.185 Billion

The raise reflects a broad-based recovery fueled by inventory correction across customers and distributors.

Overview

  • The company now expects fiscal third-quarter 2026 net sales of roughly $1.185 billion for the period ended Dec. 31, above prior guidance of $1.109 billion to $1.149 billion.
  • Management attributed the stronger view to easing channel inventories and new customer designs moving into production.
  • Bookings were described as very strong in the December quarter, and the March-quarter starting backlog improved versus the December quarter.
  • Internal inventory fell substantially, which management says should begin to reduce write-offs, and factories are set to ramp in the March quarter to lower under‑utilization costs.
  • Shares rose about 5.6% in after-hours trading following the update, and formal results are scheduled for Feb. 5 with no conference call.