Microchip Technology Reports Q2 Fiscal 2026 Earnings

Microchip Technology ( (MCHP) ) has released its Q2 earnings. Here is a breakdown of the information Microchip Technology presented to its investors.

Microchip Technology Inc., headquartered in Chandler, Arizona, is a leading provider of smart, connected, and secure embedded control solutions, serving diverse markets such as industrial, automotive, consumer, aerospace and defense, communications, and computing.

In its latest earnings report for the second quarter of fiscal year 2026, Microchip Technology reported net sales of $1.140 billion, reflecting a 6% sequential increase but a 2% decline from the same period last year. The company exceeded its guidance midpoint of $1.130 billion and declared a quarterly dividend of 45.5 cents per share.

Key financial metrics highlighted include a GAAP gross profit of 55.9% and a non-GAAP gross profit of 56.7%. Operating income on a GAAP basis was $88.9 million, with a net income of $13.9 million, translating to an EPS of $0.03 per diluted share. On a non-GAAP basis, operating income was $277.2 million, with a net income of $199.1 million and an EPS of $0.35 per diluted share. The company also returned approximately $245.8 million to shareholders through dividends.

Strategically, Microchip introduced the industry’s first 3nm PCIe Gen 6 switch, targeting AI and enterprise data center applications, marking a significant technological advancement. The company is witnessing strong customer engagement across key growth markets, particularly in data center and aerospace and defense sectors.

Looking ahead, Microchip anticipates net sales for the December quarter to be around $1.129 billion, plus or minus $20 million. Despite the typical seasonal weakness in December, the company remains optimistic about its strategic positioning and expects stronger performance in future quarters, driven by operational improvements and robust market demand.