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Microchip Lifts Q3 Sales Outlook to About $1.185 Billion on Booking Strength

Management points to easing inventory pressures, with plans to ramp factory output in the March quarter.

Overview

  • The company now expects fiscal third-quarter 2026 net sales of roughly $1.185 billion, topping prior November guidance and a December update that signaled the high end of the range.
  • Executives cite a broad-based recovery across end markets as distributors and direct customers work down inventories and new design wins move into production.
  • Bookings were very strong in the December quarter, and the March-quarter starting backlog opened materially stronger than the prior quarter.
  • Internal inventory has declined substantially, and Microchip plans to ramp factories in the March quarter to reduce under‑utilization charges and inventory write‑offs.
  • Shares rose in extended trading after the announcement, and formal fiscal third‑quarter results are slated for February 5.