Microchip Technology Q2 Earnings Preview: Revenue Expected to Decline 14.8% YoY

Microchip Technology is set to announce Q2 earnings on Thursday. Analysts expect a 14.8% YoY revenue decline to $1.06 billion and adjusted EPS of $0.24. The company has beaten EPS estimates in the past but missed revenue expectations. Its peers in the analog semiconductors segment have reported mixed results, with some beating estimates and others missing. Microchip Technology's share price is down 5.9% over the last month and has an average analyst price target of $75.21.

Microchip Technology Incorporated (NASDAQ: MCHP) is set to announce its second-quarter (Q2) earnings results on Thursday, July 4, 2025. Analysts are expecting a 14.8% year-over-year (YoY) revenue decline to $1.06 billion and an adjusted earnings per share (EPS) of $0.24 [1].

The company has a history of beating EPS estimates but has consistently missed revenue expectations. In the first quarter (Q1) of 2026, Microchip Technology reported revenues of $1.05 billion, a 15.1% decline from the year-ago quarter, and non-GAAP earnings per share of $0.24, beating the Zacks Consensus Estimate [2].

Peers in the analog semiconductors segment have reported mixed results. Skyworks Solutions delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 2.6%, while Impinj reported a revenue decline of 4.5%, topping estimates by 4.3% [1].

Microchip Technology's share price has been volatile, down 5.9% over the last month, trading at $66.36, below the $75.21 average analyst price target [3]. The company's stock has been influenced by technical indicators showing a bearish setup with a death cross and an RSI of 34.9, indicating oversold conditions [3].

Technical indicators suggest that Microchip Technology is in a bearish setup, with key support at $65.83 and resistance at $69.35. However, the company's strategic pivot towards high-growth markets like AI, automotive, and space electronics could provide a catalyst for growth [3].

Investors should closely monitor Microchip Technology's Q2 earnings report and any analyst upgrades or downgrades. The company's focus on innovation and strategic partnerships in SiC and ADAS could provide a boost to its earnings and stock price [3].

References:
[1] https://finance.yahoo.com/news/microchip-technology-mchp-q2-earnings-032314251.html
[2] https://finance.yahoo.com/news/microchip-set-report-q1-earnings-160300549.html
[3] https://www.ainvest.com/news/microchip-technology-mchp-buy-timing-volatile-semiconductor-giant-2508/