What Sent Microchip Stock Lower?
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Microchip Technology (MCHP) stock fell 10.0% on Friday, November 6, 2026, while the S&P 500 rose 0.3%. The decline came the day after the chipmaker reported results for its fiscal second quarter of 2027, the three months ended September 30, and gave its forecast for the December quarter. What did Microchip report, and what does it expect for the December quarter?
Microchip Beat Estimates But Forecast Lower Sales
Although the September quarter came in above analysts’ estimates, management expects December-quarter net sales to range from down 3% to up 1% against the September quarter. The midpoint of that range was below analysts’ estimates. For the September quarter itself, adjusted earnings per share were $0.97 against an estimate of $0.936, while net sales came to $1.622 billion against an estimate of $1.609 billion.
Management outlined its reasons. September sales included about $53 million of one-off items, such as licensing revenue, that the company does not expect to repeat in the December quarter. It also said its sales forecast was lower than it would have expected a quarter ago, and that the company carries a substantial unsupported backlog on high-margin products its supply chain cannot fulfill, as lead times stretch at foundries, outside assembly suppliers and its own fabs. Taking out the one-off items, management said the December quarter would be up about 2.3% from September.
The company issued a lower margin forecast as well. Management expects an adjusted gross margin of 64% to 65% of net sales in the December quarter, against an adjusted 67% in the September quarter.
Did Other Chip Stocks Fall With Microchip?
No. Of the five companies on Microchip’s peer list, only Texas Instruments fell, losing 0.3%, while Micron Technology rose 5.1%. The SPDR technology sector fund, XLK, gained 1.5% during the same session. Microchip fell while its sector and most of its peers rose, so the drop was the company’s own.
Where Does Microchip Stock Stand After Two Steep Falls?
Declines of this size are rare for Microchip. Over the 365 days before November 6, only one other session brought a fall at least as large: November 5, the immediately preceding session, when the stock dropped 13.9%. That fall came before Microchip released its results after the close, on a day when XLK lost 8.0%.
Those two days extend a slide from the stock’s May high. Microchip stock lost 1.5% over the past twelve months as a whole, while the S&P 500 returned 9.8%. The close of $58.35 sits well below the 52-week closing high of $102.92 reached on May 6, 2026. Most of the slide is recent: the stock lost 40.5% over the past six months, while the S&P 500 gained 0.2%, and it dropped 22.7% over the past month alone.
Microchip is expected to report results for its fiscal third quarter of 2027, the December quarter, in February 2027. Net sales against management’s forecast range is the measure to watch in that report.
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