Why is Microchip Technology stock declining?

Microchip Technology's stock has declined due to weak Q3 guidance, citing tepid demand in automotive and industrial sectors as customers reduce inventory.

What were Microchip's Q2 2026 earnings?

Microchip reported better-than-expected Q2 2026 adjusted EPS of $0.35 and revenue of $1.14 billion.

What is the analyst outlook for Microchip (MCHP)?

Analysts maintain a 'Moderate Buy' consensus for Microchip stock, with a mean price target of $74.21.

Home / Business and Economy / Microchip Stock Plunges Amidst Weak Q3 Guidance

Microchip Stock Plunges Amidst Weak Q3 Guidance

2 Dec

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Summary

Microchip stock fell 30.8% from its 52-week high.
Company reported better-than-expected Q2 2026 results but issued weak Q3 guidance.
Analysts maintain a 'Moderate Buy' rating with a significant price target premium.

Microchip Stock Plunges Amidst Weak Q3 Guidance

Microchip Technology (MCHP), a major provider of embedded control solutions, has seen its stock price fall substantially, declining 30.8% from its 52-week high of $77.20. The company's shares have underperformed the broader market over recent months and year-to-date. This downturn follows a period where the stock has traded below its 50-day moving average since August.

Despite exceeding expectations for Q2 2026 adjusted earnings per share ($0.35) and revenue ($1.14 billion) on November 6th, MCHP's stock tumbled the following day. This was primarily due to the company issuing lower-than-anticipated Q3 guidance for net sales and adjusted EPS. Microchip cited decreased demand in the automotive and industrial sectors, as customers are working through existing inventory, signaling a potentially slower recovery ahead.