Abstract

Microchip Technology Dep Shs Repstg 1/20th Pfd Conv Ser A will report fiscal results on February 05, 2026 Post Market; this preview distills last quarter’s print and the market’s current-quarter forecasts across revenue, margins, EPS, and EBIT, and synthesizes recent institutional commentary to frame expectations and key swing factors.

Market Forecast

Consensus points to current-quarter revenue of 1.18 billion USD, up 11.63% year over year, with forecast EBIT of 0.31 billion USD, implying YoY growth of 29.91%. Forecast adjusted EPS is 0.41, up 51.32% YoY, with the revenue improvement expected to support a sequentially firmer margin profile. Granular margin guidance is not provided, but the recovery trajectory suggests stabilization or modest expansion from the prior quarter’s gross profit margin and net profit margin. The main business is projected to be led by semiconductor products, supported by a gradual normalization in customer inventory and steady licensing revenue. The largest opportunity is centered on semiconductor products, the core revenue engine at 1.11 billion USD last quarter, where improving end-demand and mix normalization provide the clearest runway for YoY growth.

Last Quarter Review

In the previous quarter, Microchip Technology Dep Shs Repstg 1/20th Pfd Conv Ser A reported revenue of 1.14 billion USD, a gross profit margin of 55.94%, GAAP net profit attributable to the parent company of 41.70 million USD with a net profit margin of 3.66%, and adjusted EPS of 0.35, with revenue declining 2.01% YoY and adjusted EPS declining 23.91% YoY. Operating performance nevertheless exceeded internal and external expectations, with EBIT of 0.28 billion USD topping estimates and adjusted EPS modestly above consensus. The main business mix was anchored by semiconductor products at 1.11 billion USD revenue, complemented by technology licensing at 32.40 million USD; semiconductor products carried the quarter and remain the key determinant of near‑term growth.

Current Quarter Outlook

Main business: Semiconductor products

Semiconductor products remain the centerpiece of near-term results and stock performance. The forecast revenue recovery to 1.18 billion USD reflects ongoing improvement in lead times, a gradual easing of customer inventory digestion, and better order linearity across embedded control, analog, and connectivity offerings. With last quarter’s gross margin at 55.94%, a mix shift toward higher-value microcontrollers and analog content can sustain, or slightly expand, gross margin provided utilization improves and pricing remains stable. Net profitability should benefit from operating leverage as volumes lift, translating forecast EBIT of 0.31 billion USD into a more robust margin profile than last quarter’s print.

Most promising opportunity: Core semiconductor portfolio

The dominant growth option this quarter is a rebound in the core semiconductor portfolio, which generated 1.11 billion USD last quarter. Year-over-year growth is expected to turn positive this quarter amid an improving bookings-to-bill ratio and normalization of channel inventories. The breadth of design wins across industrial, automotive, and IoT end markets typically cushions volatility; as those end markets incrementally recover, unit absorption should improve factory utilization and reduce overhead drag, supporting incremental gross margin gains from the 55.94% baseline. A turning price/mix environment—driven by higher pin-count MCUs, safety-certified automotive variants, and power management content—can add fractional tailwinds to blended ASPs and EBIT, consistent with the 29.91% YoY EBIT growth forecast.

Key stock drivers this quarter

Margin cadence is the most important swing factor for shares following the prior quarter’s low net profit margin of 3.66%. Investors will look for signs that operating efficiency and capacity utilization are improving in line with revenue recovery, which would validate the step-up embedded in the 0.31 billion USD EBIT forecast. Cash-generation quality is another focus, with attention on inventory turns and channel sell-through to assess whether the improvement is demand-led rather than shipment-led. Finally, management’s guidance range for revenue, adjusted EPS, and gross margin will likely influence post-earnings reactions: confirming double‑digit YoY revenue growth with EPS at or above 0.41 would support the constructive setup implied by consensus.

Analyst Opinions

The balance of recent institutional commentary skews positive, with a majority of previews highlighting sequential improvement in revenue and margins and endorsing the 0.41 adjusted EPS estimate and 1.18 billion USD revenue baseline. Several well-followed analysts point to faster-than-expected normalization in customer inventories and resilient demand in automotive and industrial channels as the primary supports for the 29.91% YoY EBIT expansion. The bullish camp emphasizes that last quarter’s outperformance versus consensus on EBIT and EPS creates a favorable beat-and-raise opportunity if gross margin recovers from 55.94% and operating discipline remains intact. In this framework, the constructive view dominates the preview landscape, anchored by expectations for mid‑50s gross margin stability, improving operating leverage, and a path toward higher EPS power as the revenue trajectory strengthens.