Microchip Technology (MCHP) Surges 11.6% on Net Sales Beat, Bright Outlook

We recently published 10 Stocks With Eye-Popping Double-Digit Gains; 4 Hit All-Time Highs. Microchip Technology Inc. (NASDAQ:MCHP) was one of the top performers on Tuesday.

Microchip Technology extended its winning streak to a third day on Tuesday, adding 11.65 percent to close at $74.87 apiece after hinting at having exceeded its net sales guidance for the third quarter of fiscal year 2026 and posting an upbeat outlook for the calendar year.

In its preliminary results, Microchip Technology Inc. (NASDAQ:MCHP) said that it expects to record $1.185 billion in net sales for the period ending December 31, 2025, exceeding its previous guidance of $1.109 billion to $1.149 billion.

"We continue to experience a fairly broad-based recovery in most of our end markets driven by progress we have made in inventory correction in distribution as well as direct customers, and with new customer designs turning to production. Our bookings activity was very strong in the December quarter despite a holiday filled quarter. Our March quarter starting backlog started out much better than that for the December quarter,” said Microchip Technology Inc. (NASDAQ:MCHP) President and CEO Steve Sanghi.

“We have made substantial progress on most elements of our nine-point recovery plan as well as our strategic initiatives. We have seen a substantial reduction in our internal inventory which will begin to lower our level of inventory write-offs. We are also preparing to ramp our factories in the March quarter which will begin to lower the amount of our under-utilization charges,” he noted.

Official results are scheduled to be released on February 5, 2026.

Looking ahead, Microchip Technology Inc. (NASDAQ:MCHP) said that it was looking forward to “a very good calendar year 2026.”

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