AI-extracted from the 10-Q filed 2026-08-06 — Q1 FY2027 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Microchip returned to strong profitability with net income of $229.8M and revenue of $1.48B (+38% YoY), driven by customer inventory destocking and new design wins entering production.
Biggest Revenue Drivers
Mixed-signal Microcontrollers$739.1M+38.8% YoY
Increased demand after customers reduced excess inventory levels and new customer design win activity entering production
Analog$410.9M+29.9% YoY
Increased demand due to customer base having reduced excess inventory levels and new customer design wins entering production
Biggest Revenue Drivers
Total revenue: $1,484.7M+38.0% YoY
Mixed-signal Microcontrollers$739.1M+38.8% YoY
Increased demand after customers reduced excess inventory levels and new customer design win activity entering production
Analog$410.9M+29.9% YoY
Increased demand due to customer base having reduced excess inventory levels and new customer design wins entering production
Other$334.7M+47.6% YoY
Customer base reduced excess inventory levels and needed to purchase products at higher level to support demand
Technology Licensing$42.6M+29.1% YoY
Royalties associated with licenses for SuperFlash and other technologies
Largest Expense Items
Cost of Sales$545.8M+9.4% YoY
Increased sales volume with improved gross margin mix and lower inventory reserves
Research and Development$308.9M+20.9% YoY
Higher employee compensation costs including higher share-based compensation expenses
Selling, General and Administrative$184.3M+15.7% YoY
Higher employee compensation costs including higher share-based compensation expenses, partially offset by lower professional services costs
Margins: Gross margin expanded to 63.2% from 53.6%, driven by favorable product mix, lower unabsorbed capacity charges ($13.0M favorable impact), lower inventory reserves ($68.6M favorable impact), and higher licensing revenue ($9.6M favorable impact). Operating margin improved significantly to 22.7% from 3.0%, reflecting strong operational leverage from revenue growth.
Watch Items from the Filing
Malaysian tax dispute: potential liability of $474.7M if IRB prevails on income adjustment for fiscal 2020; adjudication may commence within 18 months with tax stayed pending appeal.
Customer concentration risk: Arrow Electronics represents 12% of Q1 FY2027 revenue; loss of major distributor could materially impact sales and inventory levels.
Export control exposure: $474.7M of potential contingent liability from IRS settlement (fiscal 2007-2015); continued geopolitical risks including China tariff investigation and U.S. tariff policy changes.
Strong cash generation: operating cash flow of $511.5M YTD with improving inventory efficiency (175 days vs. 185 days YoY); gross debt of $5.40B but investment-grade rated.
Inventory management improving: distributor inventory at 25 days (vs. 26 days prior quarter); company maintains flexibility in manufacturing capacity following Fab 2 closure and paused capital expansion.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Cassidy Richard B. IIDirectorGrant or award · Aug 18, 2026
Little Mitchell RDirectorGrant or award · Aug 18, 2026
Peng VictorDirectorGrant or award · Aug 18, 2026
Congress trading in MCHP
16 transactions in MCHP reported by 8 members of Congress under the STOCK Act, most recent trade Sep 16, 2026. Reported transactions, not recommendations.
About MICROCHIP TECHNOLOGY INC (MCHP): stock profile, AI score and financials
MICROCHIP TECHNOLOGY INC (MCHP) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores MCHP at 52.9/100 on a composite quality score built from its SEC filings, placing it at rank #1,436 of 2,925 stocks — the top half of the AI-ranked universe. MCHP scores in the top quartile across revenue scale (78.2), earnings quality (76.5), free cash flow (75.6). Areas of concern include revenue growth (7.2), which score below median versus the broader universe. Shareholder dilution risk is elevated at 23.0/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2027), MICROCHIP TECHNOLOGY INC reports quarterly revenue of $1.5B, net income of $229.8M, an operating margin of 22.7%. Top institutional holders of MCHP by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. MCHP trades on the Nasdaq exchange and files with the SEC under CIK 827054. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate MCHP daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for MICROCHIP TECHNOLOGY INC directly from SEC EDGAR.