For the second calendar quarter of 2026, analysts expect Microchip Technology to report revenue of $1.24 billion and EPS of $0.59, with the stock currently trading at $88.50 compared to an average price target of $105.00.
The primary focus for investors is the recovery of non-GAAP gross margins, which have been pressured by lower factory utilization and inventory digestion across the industrial and automotive sectors.
After several quarters of sequential declines, the market is looking for evidence that channel inventories have normalized and that lead times are finally stabilizing. Management's outlook for the remainder of fiscal 2027 will be critical in confirming whether the semiconductor cycle has definitively turned positive.