12:15 PM EDT, 08/08/2025 (MT Newswires) -- Microchip Technology ( MCHP ) delivered better-than-expected fiscal Q1 results, with revenue rising 10.8% quarter-over-quarter to $1.08 billion, but faces a higher revenue bar than its peers, Morgan Stanley said in a report Friday.

The analysts said the company led analog and microcontroller peers in fiscal Q1 but issued a "rather cautious" fiscal Q2 outlook that "held close" to rivals.

The guidance was in line with analyst expectations as the company said it expects fiscal Q2 adjusted earnings of $0.30 to $0.36 per share, straddling the $0.31 per share estimate of analysts polled by FactSet. Revenue is forecast at $1.11 billion to $1.15 billion, also in line with the $1.13 billion analyst estimate.

Despite improving fundamentals, the analysts said they believe it's time to remain cautious as the operating environment remains "nontraditional" with ongoing end-market noise and tariff uncertainty.

Morgan Stanley analysts said they remain equalweight on the stock until further improvement is seen in the topline while raising their price target to $63 from $61.

Shares of the company were down more than 4% in recent Friday trading.

Price: 63.13, Change: -3.09, Percent Change: -4.67