Shares of Microchip Technology (MCHP) rose about 7% on Wednesday after the company’s revised revenue and EPS outlook for the third quarter of fiscal 2026, ending Dec. 31, came above estimates.
The company now expects its net sales and EPS to be at the high end of its previously provided guidance, representing sequential growth of roughly 1% that exceeds the midpoint of its prior guidance, which anticipated a sequential decline in net sales.
While reporting its second quarter results on Nov. 6, Microchip provided its third quarter outlook, forecasting it to be between $1.109B and $1.149B (midpoint at $1.129B). The consensus revenue estimate is $1.14B.
The company said the revised revenue guidance would represent 12% year-over-year growth.
In addition, Microchip now expects non-GAAP EPS to be about $0.40 versus the prior estimate range of $0.34 and $0.40 (midpoint at $0.37). The new guidance surpasses the consensus EPS estimate of $0.38.
“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. Our 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,” said Microchip’s President and CEO Steve Sanghi.
Related stocks: NXP Semiconductors (NXPI) jumped about 3%, while Texas Instruments (TXN) and STMicroelectronics (STM) each climbed nearly 2%. Marvell Technology (MRVL) surged about 7%, while ON Semiconductor (ON) soared around 4%. Analog Devices (ADI) was up nearly 1%.