Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2027
Key Highlights
- ➤Net sales $1.622 billion, up 42.2% year over year and 9.2% sequentially
- ➤Non-GAAP EPS $0.97, exceeding $0.91-$0.95 guidance
- ➤December-quarter revenue guidance midpoint $1.605 billion, down 1% sequentially
- ➤Completed Hailo and Vorago Technologies acquisitions in September and October
- ➤PCIe Gen6 switch and retimer design wins doubled to 24 from 12
Expert Statements
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“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 of Microchip Technology
“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 of Microchip Technology
“Bookings remained robust, with book-to-bill well above one, consistent with recent quarters.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“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.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“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 of Microchip Technology
“Our September quarter results reflect ongoing operational improvements, with non-GAAP operating expenses growing well below net sales and supporting higher profitability.”
Eric Bjornholt, Corporate Senior Vice President and Chief Financial Officer of Microchip Technology
“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 of Microchip Technology
“As we enter the December quarter, we are experiencing some normal seasonal factors in our business.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“Normal seasonality is for our revenue to be down sequentially 3% to 5% in the December quarter.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“We expect net sales for the December quarter to be between down 3% and up 1% sequentially, with a midpoint of down 1%.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“The midpoint of our December quarter guidance represents year-over-year growth of approximately 35.4%.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“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.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“Taking this into consideration, the midpoint of our guidance for the December quarter represents guidance that is 5% to 7% better than normal seasonality.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“Lead times are lengthening across our supply chain, and we are working to expand capacity and secure additional wafer allocation.”
Steve Sanghi, President and Chief Executive Officer of Microchip Technology
“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.”
* Net sales of $1.622 billion, increased 42.2% from the year-ago quarter and up 9.2% sequentially. The midpoint of our guidance provided on August 6, 2026 was net sales of $1.604 billion. * On a GAAP basis: gross profit of 65.9%; operating income of $464.5 million and 28.6% of net sales; net income attributable to common stockholders of $373.6 million; and EPS of $0.68 per diluted share. Our guidance provided on August 6, 2026 was GAAP EPS per diluted share of $0.53 to $0.54. * On a Non-GAAP basis: gross profit of 66.5%; operating income of $639.9 million and 39.5% of net sales; net income of $559.2 million; and EPS of $0.97 per diluted share. Our guidance provided on August 6, 2026 was Non-GAAP EPS per diluted share of $0.91 to $0.95. * Returned approximately $247.6 million to common stockholders in the September quarter through dividends. * Quarterly dividend on common stock declared for the December quarter of 45.5 cents per share. * Completed acquisitions of Hailo, a provider of accelerated edge AI processors, on September 17th, and Vorago Technologies, a provider of radiation-hardened microcontrollers and microprocessors, on October 8th. CHANDLER, Ariz., Nov. 05, 2026 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) - Microchip Technology Incorporated, a broadline supplier of semiconductors committed to making innovative design easier through total system solutions, today reported results for the three months ended September 30, 2026.
Get started
Create a free account to read the full story.