Microchip Technology Incorporated: Beat — EPS $0.97, Revenue $1.62B

MCHPMicrochip Technology Incorporated•Q2 2027•Nov 05, 2026, 4:15 PM EST

Earnings BeatQ2 2027 · After-market

Did Microchip Technology Incorporated (MCHP) beat earnings?

@trystockwhiz

Yes, Microchip Technology Incorporated (MCHP) beat Wall Street analyst expectations for Q2 2027, reporting higher-than-expected EPS and higher-than-expected revenue.

Earnings Per Share+3.19% surprise

$0.97Actual

Expected: $0.94

vs. year ago +177.1%

Total Revenue+0.71% surprise

$1.62BActual

Expected: $1.61B

vs. year ago +42.2%

Released Nov 05 · 4:15 PM ET

Earning Report

Metric	Q2 FY27	Q2 FY26	YoY Change %
Net sales	$1.62B	$1.14B	+42.2%
Net income	$401.40M	$41.70M	+862.6%
GAAP Basic EPS	$0.69	$0.03	+2200.0%
GAAP Diluted EPS	$0.68	$0.03	+2166.7%
Non-GAAP Net Income	$559.20M	$199.10M	+180.9%
Non-GAAP Diluted EPS	$0.97	$0.35	+177.1%

Financial Outlook / Guidance

Metric	Q3 FY27 Outlook		FY27 Outlook
Metric	Guidance	Expected	Guidance
Net Sales	$1.573 to $1.638 billion	$1.63BIn-Line	—
GAAP Gross Profit	62.9% to 63.9%	—	—
Non-GAAP Gross Profit	64.0% to 65.0%	—	—
GAAP Operating Expenses	36.7% to 37.4%	—	—
Non-GAAP Operating Expenses	26.5% to 27.0%	—	—
GAAP Operating Income	25.5% to 27.2%	—	—
Non-GAAP Operating Income	37.0% to 38.5%	—	—
GAAP Other Expense, net	$47.7 to $48.3 million	—	—
Non-GAAP Other Expense, net	$47.5 to $48.5 million	—	—
GAAP Net Income	$285.9 to $305.8 million	—	—
Non-GAAP Net Income	$498.8 to $545.1 million	—	—
Dividends on Series A Preferred Stock	$(27.8) million	—	—
GAAP Net Income Attributable to Common Stockholders	$258.1 to $278.0 million	—	—
Non-GAAP Net Income Attributable to Common Stockholders	$498.8 to $545.1 million	—	—
GAAP Diluted Common Shares Outstanding	Approximately 551.0 to 552.0 million shares	—	—
Non-GAAP Diluted Common Shares Outstanding	Approximately 574.8 to 575.8 million shares	—	—
GAAP Diluted Net Income per Common Share	$0.47 to $0.50	—	—
Non-GAAP Diluted Net Income per Common Share	$0.87 to $0.95	$0.94In-Line	—
Capital expenditures	about $35 million	—	approximately $100 million

Q3 FY27 Outlook

Net Sales: Guidance
$1.573 to $1.638 billion
Expected
$1.63BIn-Line
GAAP Gross Profit: Guidance
62.9% to 63.9%
Expected
—
Non-GAAP Gross Profit: Guidance
64.0% to 65.0%
Expected
—
GAAP Operating Expenses: Guidance
36.7% to 37.4%
Expected
—
Non-GAAP Operating Expenses: Guidance
26.5% to 27.0%
Expected
—
GAAP Operating Income: Guidance
25.5% to 27.2%
Expected
—
Non-GAAP Operating Income: Guidance
37.0% to 38.5%
Expected
—
GAAP Other Expense, net: Guidance
$47.7 to $48.3 million
Expected
—
Non-GAAP Other Expense, net: Guidance
$47.5 to $48.5 million
Expected
—
GAAP Net Income: Guidance
$285.9 to $305.8 million
Expected
—
Non-GAAP Net Income: Guidance
$498.8 to $545.1 million
Expected
—
Dividends on Series A Preferred Stock: Guidance
$(27.8) million
Expected
—
GAAP Net Income Attributable to Common Stockholders: Guidance
$258.1 to $278.0 million
Expected
—
Non-GAAP Net Income Attributable to Common Stockholders: Guidance
$498.8 to $545.1 million
Expected
—
GAAP Diluted Common Shares Outstanding: Guidance
Approximately 551.0 to 552.0 million shares
Expected
—
Non-GAAP Diluted Common Shares Outstanding: Guidance
Approximately 574.8 to 575.8 million shares
Expected
—
GAAP Diluted Net Income per Common Share: Guidance
$0.47 to $0.50
Expected
—
Non-GAAP Diluted Net Income per Common Share: Guidance
$0.87 to $0.95
Expected
$0.94In-Line
Capital expenditures: Guidance
about $35 million
Expected
—

FY27 Outlook

Net Sales: Guidance
—
GAAP Gross Profit: Guidance
—
Non-GAAP Gross Profit: Guidance
—
GAAP Operating Expenses: Guidance
—
Non-GAAP Operating Expenses: Guidance
—
GAAP Operating Income: Guidance
—
Non-GAAP Operating Income: Guidance
—
GAAP Other Expense, net: Guidance
—
Non-GAAP Other Expense, net: Guidance
—
GAAP Net Income: Guidance
—
Non-GAAP Net Income: Guidance
—
Dividends on Series A Preferred Stock: Guidance
—
GAAP Net Income Attributable to Common Stockholders: Guidance
—
Non-GAAP Net Income Attributable to Common Stockholders: Guidance
—
GAAP Diluted Common Shares Outstanding: Guidance
—
Non-GAAP Diluted Common Shares Outstanding: Guidance
—
GAAP Diluted Net Income per Common Share: Guidance
—
Non-GAAP Diluted Net Income per Common Share: Guidance
—
Capital expenditures: Guidance
approximately $100 million

Business Highlights

➤Completed Hailo acquisition for accelerated edge AI processors on September 17.
➤Completed Vorago Technologies acquisition for radiation-hardened microcontrollers and microprocessors on October 8.
➤PCIe Gen6 switch and retimer design wins reached 24, up from 12.
➤Introduced products and technologies across data center, aerospace and defense, automotive and industrial applications.
➤Bookings remained robust, with book-to-bill well above one.
➤Lead times are lengthening across the supply chain.
➤Working to expand capacity and secure additional wafer allocation.
➤Declared a 45.5 cents per share quarterly common-stock dividend.
➤Returned approximately $247.6 million to common stockholders through September-quarter dividends.
➤Paused most factory expansion actions while selectively adding production and R&D equipment.
➤Victor Peng informed the Board he will step down due to other time commitments.

Management Commentary

Steve Sanghi, President and Chief Executive Officer

“Our September quarter net sales were above the high end of our guidance, increasing 42.2% year over year and 9.2% sequentially to $1.622 billion,”

Steve Sanghi, President and Chief Executive Officer

“The momentum from the start of fiscal 2027 continued in the September quarter, with broad-based growth across our end markets, driven by industrial and data center applications. Our growth is increasingly supported by new design wins and product innovations, which we believe positions us well for the opportunities ahead.”

Steve Sanghi, President and Chief Executive Officer

“Bookings remained robust, with book-to-bill well above one, consistent with recent quarters. We are winning new designs across our end markets, including data center, where our PCIe Gen6 switch and retimer design wins have grown to 24 to date, up from 12 at the end of the June quarter. We also broadened our portfolio, with a steady cadence of product and technology introductions across data center, aerospace and defense, automotive and industrial applications, which expands the foundation for future design wins.”

Eric Bjornholt, Corporate Senior Vice President and Chief Financial Officer

“Our September quarter results reflect ongoing operational improvements, with non-GAAP operating expenses growing well below net sales and supporting higher profitability. We believe our existing manufacturing footprint enables us to grow with modest incremental capital investment, and we remain focused on strengthening our balance sheet while making targeted investments that accelerate our product roadmap.””

Steve Sanghi, President and Chief Executive Officer

“As we enter the December quarter, we are experiencing some normal seasonal factors in our business. Normal seasonality is for our revenue to be down sequentially 3% to 5% in the December quarter. We expect net sales for the December quarter to be between down 3% and up 1% sequentially, with a midpoint of down 1%. The midpoint of our December quarter guidance represents year-over-year growth of approximately 35.4%. Our guidance of down 1% at the midpoint needs to be considered with the fact that we had about $53 million of infrequent revenue items in the September quarter which do not repeat in the December quarter. Taking this into consideration, the midpoint of our guidance for the December quarter represents guidance that is 5% to 7% better than normal seasonality. Lead times are lengthening across our supply chain, and we are working to expand capacity and secure additional wafer allocation. We expect non-GAAP gross margin to be between 64% and 65% and GAAP gross margin to be between 62.9% and 63.9%. Together, data center, aerospace and defense, industrials, robotics, automotive and the intelligent edge are the secular trends we see driving growth over the long-term.””