Microchip Technology raises profit, revenue expectations for third quarter

Dec 2 (Reuters) - Chipmaker Microchip Technology MCHP.O on Tuesday raised its expectations for third-quarter net sales and earnings per share, driven by strong bookings, sending its shares up 2.3% in extended trading.

The company now expects adjusted earnings per share of 40 cents, which is at the higher end of its earlier projected range of 34 to 40 cents per share.

"With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call," CEO Steve Sanghi said in a statement.

Microchip said it now expects net sales to also be at the high end of its previous forecast range of $1.11 billion to $1.15 billion.

The revised revenue outlook implies a sequential growth of about 1% and a year-over-year growth of 12%, the company said.

Sanghi said the company's bookings activity has "remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter."