MCHP earnings analysis
What we found in MCHP's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Microchip Technology reported strong revenue growth of 7.1% year-over-year, reaching $4.713 billion in fiscal 2026, driven primarily by increased demand following customer inventory reductions. The company achieved a GAAP net income of $230 million, resulting in a diluted EPS of $0.22, while non-GAAP EPS was $0.57, exceeding expectations. Looking forward, the guidance for Q1 2027 suggests continued growth with expectations of $1.442 billion to $1.469 billion in revenue.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 7.1% YoY
- Revenue increased to $4.713 billion in fiscal 2026, up from $4.401 billion in 2025.
- Net Income Achieves $230 Million
- Net income for fiscal 2026 was $230 million, with GAAP EPS of $0.22.
- Strong Q1 2027 Guidance
- Guidance for Q1 2027 indicates expected revenue between $1.442 billion and $1.469 billion.
- Reduction in Inventory Levels
- The total inventory decreased from $1.293 billion to $1.035 billion, reflecting better inventory management.
- Gross Margin Increased to 57.7%
- Gross profit for fiscal 2026 was $2.721 billion, representing 57.7% of net sales.
- Shareholder Returns Maintained
- The company paid $984.0 million in dividends to common stockholders in fiscal 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Geopolitical Tensions
- Ongoing geopolitical risks may impact future operational stability and supply chain.
- Potential Tax Liabilities in Malaysia
- The outcome of an audit could result in up to approximately $480 million in tax liabilities.
- High Dependence on Key Customers
- Arrow Electronics represented 12% of 2026 sales; loss of significant customers poses a risk.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.22
- Gross margin
- 57.7%
- Operating margin
- 10.4%
- Segment
- Semiconductor Products
- Segment
- Technology Licensing
What they said about what is next.
Q1 2027 guidance suggests continued strong demand.
The filing reads better than the one before it.
What came before.
- 10-Q · August 1, 2024
- Microchip reported Q1 net sales of $1,241.3 million and diluted EPS of $0.24, with operating income of $219.1 million and gross profit of $736.9 million. Year-over-year results deteriorated materially (net sales down…
- 10-Q · February 1, 2024
- Microchip reported Q3 net sales of $1,765.7 million (down from $2,169.2 million a year ago) and GAAP diluted EPS of $0.77 (down from $1.04 YoY). Gross profit fell to $1,120.0 million and operating income to $529.4…
- 10-Q · November 2, 2023
- Microchip reported net sales of $2,254.3 million and GAAP diluted net income per share of $1.21 for the three months ended September 30, 2023. Revenue and profitability improved versus the prior year driven by growth in…
- 10-Q · August 3, 2023
- Microchip Technology reported impressive growth in its Q1 results for the fiscal year 2024, with revenue reaching $2.29 billion, reflecting a 7.5% increase sequentially and a 16.8% increase year-over-year. Earnings per…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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