MICROCHIP TECHNOLOGY INC (MCHP) Form 10-Q — Aug 6, 2026

$MCHPForm 10-QFiled Aug 6, 2026, 4:21 PM ET0000827054-26-000038Original filing

Microchip Technology's fiscal Q1 2027 (June quarter) showed a sharp cyclical recovery: net sales rose 38.0% year over year to $1,484.7 million, with net income of $229.8 million ($0.37 diluted EPS) versus an $18.6 million loss in the year-ago quarter. Management attributed the growth to demand recovery after customers worked down excess inventory plus new design wins entering production. Gross margin expanded to 63.2% from 53.6% a year ago on better product mix, lower unabsorbed capacity charges, reduced inventory reserves and higher licensing revenue, while operating cash flow nearly doubled to $511.5 million. Inventory days declined to 175 from 185 sequentially.

Key figures

Eps: $0.37 diluted (vs. $(0.09) year-ago)
Revenue: $1,484.7 million
Guidance: Capital investments over the next 12 months expected at or below $100.0 million; intent to maintain quarterly cash dividends
Net Income: $229.8 million (vs. $(18.6) million year-ago)
Total Debt: $5.40 billion principal outstanding
Revenue Yoy: +38.0%
Cash Position: $272.3 million
Shares Outstanding: 543008691
Gross Margin: 63.2% vs. 53.6% year-ago
Inventory Days: 175 vs. 185 at March 31, 2026
Deferred Revenue: $431.0 million at June 30, 2026
Operating Income: $336.8 million (22.7% of net sales) vs. $32.1 million year-ago
Buyback Remaining: $1.56 billion under $4.00 billion authorization; no repurchases in the quarter
Effective Tax Rate: 20.7%
Inventory Balance: $1,047.3 million
Operating Cash Flow: $511.5 million vs. $275.6 million year-ago
Malaysia Tax Exposure: up to MYR 1.9 billion (~$474.7 million) in taxes and penalties
Convertible Debt Total: $2,187.9 million principal
Common Dividend Per Share: $0.455 quarterly (declared August 6, 2026)
Largest Distributor Share: Arrow Electronics at 12% of net sales
Distributor Inventory Days: 25
Preferred Dividend Per Share: $18.750 quarterly per preferred share (declared August 6, 2026)
Commercial Paper Outstanding: $211.0 million at 4.04% weighted-average rate

Price after filing

1 day: -3.6%7 days: -3.7%30 days: -8.1%

Close on the filing date to close N calendar days later (from $80.67). Historical, not a forecast.

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