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Microchip Technology

Microchip Technology (MCHP) Q1 2027 Earnings

Reported Aug 6, 2026 at 4:17 PM ET · SEC Source

Q1 27 EPS Adjusted

$0.76

BEAT +8.68%

Est. $0.70

Q1 27 Revenue

$1.48B

BEAT +1.79%

Est. $1.46B

Market Reaction

Did MCHP Beat Earnings? Q1 2027 Results

Microchip Technology posted a convincing beat across the board in its first quarter of fiscal 2027, extending its streak of topping Wall Street consensus EPS estimates to five consecutive quarters. The chipmaker reported adjusted non-GAAP EPS of $0.7… Read more Microchip Technology posted a convincing beat across the board in its first quarter of fiscal 2027, extending its streak of topping Wall Street consensus EPS estimates to five consecutive quarters. The chipmaker reported adjusted non-GAAP EPS of $0.76, ahead of the $0.70 consensus estimate by 8.68%, while net sales of $1.48 billion edged past the $1.46 billion estimate, reflecting 38.0% year-over-year growth. The primary engine behind the results was a pronounced recovery in demand and inventory normalization, with non-GAAP gross margin expanding to 63.8% and non-GAAP operating income climbing to $521.10 million, more than double the $222.30 million recorded a year ago. PCIe Gen 6 design wins doubled to 12 programs during the quarter, underscoring growing traction in data center and connectivity markets. Management guided Q2 fiscal 2027 net sales of $1.59 billion to $1.62 billion, implying roughly 40.6% year-over-year growth at the midpoint, with non-GAAP EPS guided at $0.91 to $0.95, signaling continued margin expansion ahead.

Key Takeaways

  • • Improving demand and continued inventory normalization
  • • Stronger factory utilization contributing to better operational leverage
  • • Distribution sell-through increased meaningfully
  • • Bookings remained strong with book-to-bill ratio well above 1
  • • Non-GAAP gross margin expanded sequentially to 63.8%, above guidance
  • • Inventory days declined from 185 to 175 days
  • • Lower underutilization charges and disciplined expense management

MCHP Forward Guidance & Outlook

For Q2 FY2027 (September quarter), Microchip expects net sales of $1.589 billion to $1.618 billion, representing 7% to 9% sequential growth and approximately 40.6% year-over-year growth at the midpoint. Non-GAAP gross profit margin is expected at 66.0% to 67.0%, with non-GAAP operating income margin of 38.5% to 39.5%. Non-GAAP diluted EPS is guided at $0.91 to $0.95. GAAP diluted EPS is guided at $0.53 to $0.54. Capital expenditures for the September quarter are expected between $20 million and $25 million, and approximately $100 million for all of fiscal 2027. The company has paused most factory expansion but is selectively adding production capacity and R&D equipment. Improving factory utilization and operational leverage are expected to support further progress toward long-term margin objectives.

24/7 Wall St

MCHP YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

“We kicked off fiscal 2027 on a strong note, with net sales increasing 38% year over year and 13.2% sequentially to $1.485 billion, above the high end of our guidance. Improving demand, continued inventory normalization, and stronger factory utilization contributed to better operational leverage during the quarter and support our continued progress towards our long-term business model.”

— Steve Sanghi, Q1 2027 Earnings Press Release

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