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Investing.com - KeyBanc has reiterated an Overweight rating and $85.00 price target on Microchip Technology (NASDAQ:MCHP) following the company’s positive pre-announcement for its fiscal third quarter of 2026. The target represents a 50% upside from the current price of $56.71, significantly higher than the average analyst target of 35% upside according to InvestingPro data.
Microchip Technology now expects revenues of approximately $1.15 billion for the quarter, representing a 12% year-over-year increase, compared to its previous midpoint guidance of $1.13 billion provided on November 6, 2025. This positive development comes despite the company experiencing a 23.36% revenue decline in the last twelve months.
The semiconductor company also raised its non-GAAP earnings per share forecast to $0.40, up from the previous midpoint guidance of $0.37 per share. InvestingPro analysis shows that while Microchip wasn’t profitable over the last twelve months, analysts predict the company will be profitable this fiscal year with an EPS forecast of $1.50.
KeyBanc has updated its estimates for Microchip’s fiscal fourth quarter of 2026, now projecting revenues of $1.21 billion and earnings per share of $0.47, compared to the consensus estimates of $1.19 billion and $0.44, respectively.
For fiscal year 2027, KeyBanc forecasts Microchip Technology will achieve revenues of $5.53 billion and earnings per share of $2.59, above consensus estimates of $5.39 billion and $2.44, respectively.
In other recent news, Microchip Technology Inc . reported its earnings for the second quarter of fiscal 2026, slightly surpassing Wall Street expectations with non-GAAP earnings per share of $0.35, compared to the forecasted $0.34. The company’s revenue was in line with predictions, reaching $1.14 billion, which represents a sequential growth of 6%. Furthermore, Microchip has revised its guidance for the third quarter, now anticipating net sales of approximately $1.149 billion, reflecting sequential growth of about 1% and a year-over-year increase of 12%. Additionally, Truist Securities adjusted its price target for Microchip Technology to $60.00 from $64.00, maintaining a Hold rating due to disappointing guidance for the next quarter. In product news, Microchip introduced two new digital power monitors, the PAC1711 and PAC1811, designed for battery-operated devices, which consume half the power of comparable solutions. These monitors feature real-time system alerts and a patent-pending step-alert function for enhanced monitoring. These developments underscore Microchip’s ongoing efforts to innovate while navigating market challenges.
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