-
Microchip Technology (MCHP) posted Q3 revenue of $1.186B, up 15.6% year over year, with non-GAAP gross margins expanding to 60.5% from 52% a year ago as its nine-point turnaround plan gains traction. TE Connectivity (TEL) delivered Q1 FY2026 revenue of $4.67B, up 22% year over year, with record orders of $5.1B and 38% growth in its Industrial Solutions segment driven by AI data center connectivity and grid hardening.
-
Microchip is executing a margin recovery as inventory normalizes and factory utilization improves, while TE is in growth mode, capturing AI infrastructure spending today with AI data center revenue having tripled from $300M in FY2024 to over $900M in FY2025.
-
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Microchip Technology (NASDAQ:MCHP) just posted a third consecutive quarter of sequential revenue recovery, while TE Connectivity (NYSE:TEL) delivered record orders and double-digit growth across both segments. Two mature industrial-facing names, two very different stories.
Microchip’s recovery is accelerating. Revenue came in at $1.186 billion, up 4% sequentially and 15.6% year over year. Non-GAAP gross margins expanded to 60.5%, up from 52% just a year ago. CEO Steve Sanghi has been methodical: close underperforming fabs, normalize inventory, rebuild customer relationships. The nine-point recovery plan is producing visible results.
TE Connectivity is operating in a different gear. Q1 FY2026 revenue hit $4.67 billion, up 22% year over year, with record orders of $5.1 billion, up 28%. The Industrial Solutions segment grew 38% year over year, fueled by AI data center connectivity and grid hardening. CEO Terrence Curtin put it directly: “Our teams delivered strongly against our strategy, resulting in first quarter earnings growth over 30% and sales growth of more than 20%, both of which were above our guidance.”
READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
|
Metric |
MCHP (Q3 FY26) |
TEL (Q1 FY26) |
|---|---|---|
|
Revenue |
$1.186B |
$4.67B |
|
YoY Revenue Growth |
+15.6% |
+22% |
|
Adj. Operating Margin |
28.5% |
22.2% |
|
Free Cash Flow |
$318.9M |
$608M |
|
Forward P/E |
24x |
18x |
Microchip sells microcontrollers and analog chips into roughly 120,000 customers across industrial, automotive, and aerospace markets. Its moat is breadth and deep customer integration. The risk: inventory normalization still has room to run, and macro softness could slow the recovery.
