Microchip Technology (MCHP) Q2 FY26 earnings call

Microchip Technology reported sequential sales growth in Q2 FY26, driven by strong microcontroller and data center product performance, alongside significant non-GAAP margin expansion. The company is strategically shifting towards advanced nodes and high-performance products, exemplified by its new 3-nanometer PCIe Gen 6 switch. While facing near-term headwinds from customer inventory adjustments and a softer macro environment, management anticipates a return to strong sequential growth in the March 2026 quarter and beyond, supported by closing inventory gaps and seasonal strength.