EarningsQ1 2027 Earnings Report
MX:MCHP Q1 2027 EPS Results
Actual EPS$13.68
Consensus EPS$12.60
Beat/MissBeat by +$1.08
One Year Ago EPS$4.86
MX:MCHP Q1 2027 Revenue Results
Actual Revenue$26.73B
Expected Revenue$26.26B
Beat/MissBeat by +$471.74M
YoY Revenue Growth+38.05%
Earnings Announcement Details
QuarterQ1 2027
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:MCHP Upcoming Earnings
Microchip's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:MCHP Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated strong operational and financial momentum: robust revenue growth, expanding margins, very strong bookings, accelerating data-center exposure and notable design wins, supported by strong cash generation and improving leverage. Headwinds include supply-chain constraints (foundry/OSAT/substrate/test), some one-time/lumpy margin benefits that may not repeat, elevated inventory levels (though improving), and a high net-debt balance that management is prioritizing for paydown. On balance, the positive execution, strong bookings/backlog, and meaningful data-center opportunity outweigh the challenges.Company Guidance
Strong Revenue Growth
Net sales in the June quarter were $1.485 billion, up 13.2% sequentially and up 38% year-over-year.
Robust Margin and Profit Performance
Non-GAAP gross margin was 63.8% (GAAP 63.2%); non-GAAP operating margin was 35.1% (sequential improvement of 452 bps). Non-GAAP net income was $438.6M and non-GAAP diluted EPS was $0.76 (beat guidance midpoint by $0.07).
Strong Cash Generation
Operating cash flow was $511.5M and adjusted free cash flow was $478.6M in the quarter.
Data Center Exposure Accelerating
Total data center net sales for CY2025 were ~$591M (~14% of net sales). CY2026 data center sales are expected to be ~ $1.0B (approximately +69% YoY). Data center Q1 CY2026 sales were +77.2% YoY and Q2 CY2026 sales were +97.8% YoY.
Meaningful End-Market Diversification and Growth
June quarter end-market mix: Industrial 32.2%, Data center 17.1%, Aerospace & Defense 16.7%, Automotive 15.0%, Communication 8.2%, Consumer 7.4%, Compute 3.4%. Year-over-year growth by segment: industrial +24.3%, data center +97.8%, A&D +45.6%, automotive +29.3%, communication +53.3%, consumer +19.1%, compute +9.6%.
Strong Bookings and Backlog
Bookings in the June quarter were very strong with book-to-bill well above 1; June was the strongest booking quarter in ~4 years and distribution sell-through grew 17% sequentially.
Healthy Adjusted EBITDA and Leverage Progress
Adjusted EBITDA was $587.8M (39.6% of net sales); trailing 12-month adjusted EBITDA $1.798B. Net debt to adjusted EBITDA improved to 2.85 and management expects meaningful reduction through FY27.
Positive Guidance for September Quarter
Guidance: September net sales up ~8% sequentially (±1%) and up ~40.6% YoY at midpoint; non-GAAP gross margin guidance 66%–67%; non-GAAP EPS guide $0.91–$0.95 (midpoint +165.7% YoY, +22.4% sequentially).
Design Wins and Strategic AI/Edge Acquisition
Data Center Solutions BU design wins increased to 14 (12 Gen6 switch, 2 Gen6 retimer). Announced small acquisition of Hailo (AI edge) to accelerate roadmap; expected to close in September.
MX:MCHP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed