The strong beat and raised guidance suggest the cyclical recovery is accelerating. Traders should watch for continued momentum in the June quarter, as guidance implies 11% sequential revenue growth and further margin expansion toward the 65% long-term target. The stock likely rallies on this report.
Price Chart
Executive Summary
Microchip Technology reported Q4 FY2026 net sales of $1.311B (+35.1% YoY), well above the $1.260B guidance midpoint, and non-GAAP EPS of $0.57, beating the $0.48-$0.52 guidance range. The company raised Q1 FY2027 guidance to $1.455B revenue midpoint and non-GAAP EPS $0.69, signaling accelerating demand recovery across end markets with expanding gross margins.
Key Financial Metrics
Key Facts
- Q4 net sales $1.311B, +35.1% YoY and +10.6% sequentially, above the high end of guidance
- Non-GAAP diluted EPS $0.57, beating the $0.48-$0.52 guidance range
- GAAP diluted EPS $0.21, well above guidance of $0.08-$0.12
- Non-GAAP gross margin 61.6%, up from 52.0% in the prior-year quarter
- Q1 FY2027 guidance: net sales $1.442B-$1.469B, non-GAAP EPS $0.67-$0.71, both above consensus
- Full FY2026 net sales $4.713B, +7.1% YoY; non-GAAP net income $933.9M, +31.8% YoY
- Inventory reduced to 185 days from 201 days, distributor inventory at 26 days (near low end of historical range)
Financial Impact
Q4 net sales beat by $51M (4.1%) vs guidance midpoint; non-GAAP EPS beat by $0.07 (14%) vs midpoint
Risk Factors
- Macroeconomic headwinds and tariff uncertainty could slow recovery
- Inventory normalization may impact near-term factory utilization
- High debt load ($5.5B) limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000827054-26-000012 |
| Document: mchp-20260507.htm | 0000827054-26-000012 |
| Document: 0000827054-26-000012-index-headers.html | 0000827054-26-000012 |
| Document: 0000827054-26-000012-index.html | 0000827054-26-000012 |
| Document: 0000827054-26-000012.txt | 0000827054-26-000012 |
| 8-K Data (Synthetic) | 0000827054-26-000012 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 1, 2026 21w ago | 8-K | $81.10 $64.77 | ▼ −20.14% | ▼ −21.25% | $65.26 (−19.53%) |
May 7, 2026 24w ago | 8-K | $83.74 $68.91 | ▼ −17.71% | ▼ −22.55% | $65.26 (−22.07%) |
Mar 30, 2026 30w ago | Court Ruling | $54.08 $79.05 | ▲ +46.17% | ▲ +29.68% | $65.26 (+20.67%) |
US Market Status
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