Microchip posts strong Q2 sales but issues weaker Q3 guidance, shares slip 4%
Microchip Technology reported second‑quarter fiscal 2027 net sales of $1.62 billion, up 42.2% year‑over‑year, and non‑GAAP earnings per share of $0.97, beating estimates. The company said $53 million of infrequent revenue helped the quarter and declared a $0.455 dividend. However, it guided third‑quarter revenue to $1.573‑$1.638 billion and adjusted EPS to $0.87‑$0.95, both below consensus, sending the stock down about 4%. CEO Steve Sanghi attributed growth to industrial and data‑center applications.
Why it matters
The weaker‑than‑expected Q3 outlook caused the stock to fall 4%, indicating short‑term pressure on the share price. The guidance also signals lower near‑term revenue growth for investors tracking Microchip’s performance.
Key facts
- 1Q2 non‑GAAP EPS was $0.97, beating the $0.93 consensus by $0.04. investing.com
- 2Q2 revenue reached $1.62 billion, up 42.2% year‑over‑year. investing.com
- 3The company reported $53 million of infrequent revenue items in the quarter. investing.com
- 4Microchip declared a quarterly dividend of $0.455 per share. investing.com
- 5Q3 revenue guidance is $1.573 billion to $1.638 billion. investing.com
- 6Q3 adjusted EPS guidance is $0.87 to $0.95 per share. investing.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.