Microchip Technology Inc

Latest Results (24.10.2025):

Microchip Technology Inc. reported its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company achieved net sales of $1.0755 billion, reflecting a 10.8% increase sequentially while experiencing a 13.4% decline compared to the same quarter last year. Despite the year-over-year decrease, Microchip demonstrated operational improvements and maintained its strategic growth initiatives.

Net Sales Performance

For the first quarter of fiscal year 2026, Microchip Technology Inc. reported net sales of $1.0755 billion, marking a 10.8% increase from the previous quarter. However, this figure represents a 13.4% decline compared to the first quarter of fiscal year 2025. The reported sales exceeded the company's previously updated guidance midpoint of $1.0575 billion.

GAAP Financial Results

On a GAAP basis, the company achieved a gross profit margin of 53.6% and an operating income of $32.1 million, which is 3.0% of net sales. The GAAP net loss attributable to common stockholders was $46.4 million, or $0.09 per diluted share, compared to a net income of $129.3 million in the same quarter last year. The GAAP results were impacted by the amortization of acquired intangible assets.

Non-GAAP Financial Results

On a Non-GAAP basis, Microchip reported a gross profit margin of 54.3% and an operating income of $222.3 million, representing 20.7% of net sales. The Non-GAAP net income was $154.7 million, or $0.27 per diluted share, falling within the company's updated guidance of $0.22 to $0.26 per diluted share.

Shareholder Returns and Dividends

During the June quarter, Microchip Technology Inc. returned approximately $245.5 million to common stockholders through dividends. Additionally, the company declared a quarterly dividend of 45.5 cents per share for the September quarter, payable on September 5, 2025, to shareholders of record as of August 22, 2025.

Guidance and Future Outlook

Looking ahead to the second quarter of fiscal year 2026, Microchip projects net sales between $1.110 billion and $1.150 billion. The company anticipates continued operational leverage and margin expansion, supported by improved demand conditions and strategic initiatives. Management remains optimistic about sustained growth and enhanced shareholder value as they execute their strategic roadmap throughout fiscal year 2026.