Microchip Technology Incorporated reported better-than-expected revenue and profit for its first quarter of fiscal year 2026. Net sales for the quarter were $1.08 billion, which, despite being down 13.4% year-over-year, topped market expectations.
The company's non-GAAP profit for the quarter was $0.27 per share, exceeding analysts' consensus estimates by 13.2%. This performance was attributed to ongoing inventory correction, sequential sales growth across all product lines, and cost reduction efforts.
For the second quarter of fiscal year 2026, Microchip expects net sales to be around $1.13 billion, which is close to analysts' estimates. CEO Stephen Sanghi emphasized that the company's broad-based recovery is driven by improvements in both microcontroller and analog segments, alongside a substantial reduction in inventory levels.
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