Microchip Forecasts 65% Data Center Revenue Growth to $500M, Raises Select Prices
MCHP•Microchip’s Data Center Solutions unit generated $302.7M in 2025 revenue and is forecast to grow 65% to $500M in 2026, marking a 62.9% YoY increase. The company reported Q4 net sales of $1.31B and non-GAAP EPS of $0.57 while raising select prices to offset rising input costs.
1. Data Center Expansion
Microchip’s Data Center Solutions unit generated $302.7 million in revenue in calendar 2025 and is forecast to grow by approximately 65% to $500 million in calendar 2026, reflecting a 62.9% year-over-year jump in the March quarter as demand accelerates for storage controllers, PCIe switches and CXL memory controllers.
2. Fiscal Q4 Operating Performance
In the fourth quarter of fiscal 2026, the company posted net sales of $1.31 billion, GAAP gross profit of $799.6 million, GAAP operating income of $217.4 million and non-GAAP EPS of $0.57, driven by strength across its microcontrollers, analog and memory product lines.
3. Strategic Pricing Measures
To counter broad-based input and operational cost increases, Microchip will implement selective price hikes across its portfolio, with management indicating these actions will protect margins without altering guidance for the quarter ending June 30, 2026.
