Microchip Tech Pref Shares MCHP 7.50 Perp 03/15/2028 | 8-K: FY2027 Q1 Revenue: USD 1.485 B

Revenue: As of FY2027 Q1, the actual value is USD 1.485 B.

EPS: As of FY2027 Q1, the actual value is USD 0.37.

EBIT: As of FY2027 Q1, the actual value is USD 336.8 M.

First Quarter Fiscal Year 2027 Financial Performance (Three Months Ended June 30, 2026)

Net Sales

MICROCHIP TECHNOLOGY INCORPORATED reported net sales of $1.485 billion, marking a 38.0% increase from $1.076 billion in the prior year’s first fiscal quarter and a 13.2% sequential increase, surpassing guidance expectations .

Gross Profit and Margin

On a GAAP basis, gross profit was $938.9 million, with a gross margin of 63.2%, compared to $576.7 million and a 53.6% margin in the first quarter of fiscal year 2026 . Non-GAAP gross profit reached $947.6 million, and the gross margin expanded sequentially to 63.8%, exceeding guidance, compared to $584.4 million and a 54.3% margin in the prior year period .

Operating Income and Margin

GAAP operating income was $336.8 million, representing 22.7% of net sales, a significant increase from $32.1 million, or 3.0% of net sales, in Q1 FY26 . Non-GAAP operating income was $521.1 million, or 35.1% of net sales, up from $222.3 million, or 20.7% of net sales, in the prior year .

Operating Expenses

GAAP operating expenses totaled $602.1 million (40.6% of net sales) for Q1 FY27, compared to $544.6 million (50.6% of net sales) in Q1 FY26 . Non-GAAP operating expenses were $426.5 million (28.7% of net sales) for Q1 FY27, compared to $362.1 million (33.7% of net sales) for Q1 FY26 .

GAAP research and development expenses were $308.9 million (20.8% of net sales), up from $255.5 million (23.8% of net sales) in Q1 FY26 . Non-GAAP research and development expenses were $267.8 million (18.0% of net sales), compared to $226.4 million (21.1% of net sales) in Q1 FY26 .

GAAP selling, general and administrative expenses were $184.3 million (12.4% of net sales), compared to $159.3 million (14.8% of net sales) in Q1 FY26 . Non-GAAP selling, general and administrative expenses were $158.7 million (10.7% of net sales), compared to $135.7 million (12.6% of net sales) in Q1 FY26 .

Net Income

GAAP net income attributable to common stockholders was $202.0 million, a significant improvement from a GAAP net loss of - $46.4 million in the prior year . Non-GAAP net income was $438.6 million, up from $154.7 million in Q1 FY26 .

Other Financial Items

Other expense, net, was - $46.9 million . The GAAP income tax provision was $60.1 million, while the Non-GAAP income tax provision was $35.6 million . Dividends on Series A Preferred Stock amounted to - $27.8 million . The company returned approximately $246.9 million to common stockholders through dividends during the June quarter and declared a quarterly dividend of 45.5 cents per share on common stock for the September quarter .

Cash Flow

GAAP cash flow from operations was $511.5 million, an increase from $275.6 million in Q1 FY26 . Free cash flow was $497.6 million, up from $257.7 million in the prior year . Capital expenditures were - $13.9 million, compared to - $17.9 million in Q1 FY26 .

Balance Sheet and Operational Metrics

MICROCHIP TECHNOLOGY INCORPORATED reduced its net debt by approximately $170 million during the June quarter . Inventory days declined from 185 days on March 31 to 175 days on June 30 . Distribution sell-through increased meaningfully, bookings remained strong with a book-to-bill ratio well above 1, and customer activity improved across several key end markets . PCIe Gen6 connectivity design wins doubled sequentially from six programs in the March quarter to 12 programs in the June quarter .

Second Quarter Fiscal Year 2027 Outlook

For the September quarter, MICROCHIP TECHNOLOGY INCORPORATED expects net sales to increase sequentially by 7% to 9%, which at the midpoint would represent approximately 40.6% year-over-year growth . The company forecasts GAAP gross profit between 65.4% and 66.3%, and Non-GAAP gross profit between 66.0% and 67.0% . Capital expenditures are projected to be between $20 million and $25 million for the quarter, with approximately $100 million anticipated for all of fiscal year 2027 .