Microchip Technology beat fourth quarter estimates with 35% revenue growth and guided for further acceleration, signaling a broad-based recovery.

Microchip Technology reported fourth quarter fiscal 2026 revenue of $1.311 billion, an increase of 35.1% year-over-year and 10.6% sequentially. Non-GAAP earnings per diluted share were $0.57, well ahead of prior guidance.

Key Highlights

• Fourth quarter revenue of $1.311 billion exceeded the company's guidance midpoint of $1.26 billion, driven by what management described as broad-based improvement and increasing momentum.
• The company reduced its days of inventory to 185 from 201 in the prior quarter, a key focus for investors, while distributor inventory fell to 26 days.
• Microchip guided for first quarter 2027 revenue with a midpoint of $1.456 billion, which would represent sequential growth of 11.0% and year-over-year growth of 35.3%.