---
title: "Microchip forecasts Q3 adjusted gross margin below estimates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/304527874.md"
datetime: "2026-11-05T21:29:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/304527874.md)
  - [en](https://longbridge.com/en/news/304527874.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/304527874.md)
generator: "portal-rs"
---

# Microchip forecasts Q3 adjusted gross margin below estimates

) Overview

-   US semiconductor supplier’s Q2 sales rose 42% yr/yr, slightly beating analyst expectations
-   Adjusted EPS for Q2 beat analyst expectations
-   Company cites industrial and data center demand as key drivers of quarterly growth
-   Shares down 6% in extended trading Outlook
-   Microchip sees December qtr net sales of $1.573 bln to $1.638 bln
-   Microchip expects December qtr non-GAAP EPS of $0.87 to $0.95
-   Forecasts Q3 non-GAAP gross margin of 64% to 65%, vs analysts’ estimate of 66.19% Result Drivers
-   END MARKET DEMAND - Co said broad-based growth was driven by industrial and data center applications
-   DESIGN WINS AND INNOVATION - Co attributed growth to new design wins and product innovations
-   OPERATIONAL IMPROVEMENTS - Co said lower growth in operating expenses relative to sales supported higher profitability Company press release: Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Slight $1.62 $1.61

Beat\* bln bln (21

Analysts

)

Q2 Beat $0.97 $0.93

Adjusted (22

EPS Analysts

)

### Q2 EPS $0.68

### Q2 $559.20

Adjusted mln

Net

Income

Q2 Net $373.60

Income mln

\*Applies to a deviation of less than 1%; not applicable for per-share numbers. Analyst Coverage

-   The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 21 “strong buy” or “buy”, 6 “hold” and no “sell” or “strong sell”
-   The average consensus recommendation for the semiconductors peer group is “buy”
-   Wall Street’s median 12-month price target for Microchip Technology Inc is $105.00, about 39.4% above its November 4 closing price of $75.34
-   The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago Reuters Recommended Reads
-   Nov 3 - Chipmaker AMD forecasts Q4 revenue above estimates on strong data center demand; shares rise
-   Nov 3 - Navitas Semiconductor Q3 revenue beats estimates on rising demand from AI data centers and grid infrastructure
-   Nov 3 - Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**