Microchip (MCHP) Climbs 12% on Higher Growth Outlook

We recently published 10 Stocks Stealing Market Spotlight. Microchip Technology Inc. (NASDAQ:MCHP) is one of the best performers on Wednesday.

Microchip soared by 12.17 percent on Wednesday to finish at $63.61 apiece after raising its financial growth outlook for the third quarter of fiscal year 2026 ending December 31.

In an updated report, Microchip Technology Inc. (NASDAQ:MCHP) said it now expects net sales and diluted earnings per share to be at the high end of its prior guidance of $1.109 billion to $1.149 billion. Net sales are also targeted to jump by 12 percent year-on-year.

Meanwhile, GAAP EPS is projected at $0.02—the high end of its previous guidance range of $0.02 loss per share to a $0.02 EPS.

Non-GAAP EPS is pegged at $0.40, the high end of its original guidance of $0.34 to $0.40.

“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. We are executing on our nine-point recovery plan as well as our strategic initiatives, reducing inventory levels, improving non-GAAP gross margins, operating margins and earnings per share, and making progress towards our long-term business model,” said Microchip Technology Inc. (NASDAQ:MCHP) President and CEO Steve Sanghi.

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Disclosure: None. This article is originally published at Insider Monkey.