Microchip Q1 sales, profit beat estimates on demand from cloud providers
Overview
Microchip fiscal Q1 2026 sales of $1.0755 bln beat analyst expectations
Adjusted EPS of $0.27 for fiscal Q1 exceeds analyst estimates, per LSEG data
Company reduced inventory by $124.4 mln, improving working capital efficiency
Outlook
Microchip expects Q2 net sales of $1.110 bln to $1.150 bln
Company anticipates Q2 GAAP gross profit of 54.3% to 56.2%
Microchip forecasts Q2 non-GAAP EPS of $0.30 to $0.36
Capital expenditures for fiscal 2026 expected below $100 mln
Result Drivers
INVENTORY REDUCTION - Co reduced inventory by $124.4 mln, improving working capital efficiency
STRATEGIC IMPERATIVES - Execution of strategic imperatives under recovery plan drove sequential revenue growth
DESIGN WINS - Secured design wins with tier-one cloud providers for AI infrastructure and defense applications
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Beat | $1.08 bln | $1.06 bln (19 Analysts) |
Q1 Adjusted EPS | Beat | $0.27 | $0.24 (21 Analysts) |
Q1 EPS |
| -$0.09 |
|
Q1 Adjusted Net Income | Beat | $154.70 mln | $133.40 mln (18 Analysts) |
Q1 Net Income |
| -$46.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Microchip Technology Inc is $75.00, about 11.8% above its August 6 closing price of $66.17
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 39 three months ago
Press Release: ID:nGNXqClxR
