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…
Earnings analysis · 10-K
MCHP earnings analysis
Filed May 21, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.22
- Segment
- Semiconductor Products
- Segment
- Technology Licensing
What stood out
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Revenue Growth of 7.1% YoY
Revenue increased to $4.713 billion in fiscal 2026, up from $4.401 billion in 2025.
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Net Income Achieves $230 Million
Net income for fiscal 2026 was $230 million, with GAAP EPS of $0.22.
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Strong Q1 2027 Guidance
Guidance for Q1 2027 indicates expected revenue between $1.442 billion and $1.469 billion.
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Reduction in Inventory Levels
The total inventory decreased from $1.293 billion to $1.035 billion, reflecting better inventory management.
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Gross Margin Increased to 57.7%
Gross profit for fiscal 2026 was $2.721 billion, representing 57.7% of net sales.
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Shareholder Returns Maintained
The company paid $984.0 million in dividends to common stockholders in fiscal 2026.
What to watch
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Increased Geopolitical Tensions
Ongoing geopolitical risks may impact future operational stability and supply chain.
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Potential Tax Liabilities in Malaysia
The outcome of an audit could result in up to approximately $480 million in tax liabilities.
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High Dependence on Key Customers
Arrow Electronics represented 12% of 2026 sales; loss of significant customers poses a risk.
Management's outlook
Q1 2027 guidance suggests continued strong demand.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.