Microchip FY27 Q2: revenue $1.62 billion, up 42.2%; EPS $0.68
Microchip beat its own revenue and EPS guidance in the September quarter, and the December guide is only a small step down because about $53 million of infrequent revenue rolls off. We read this as Bullish: gross margin reached 65.9% on a GAAP basis, free cash flow was $396.1 million, and management says bookings remain well above one. The caveats are a guided margin pullback and $5.52 billion of long-term debt.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $0.68 came in well above the $0.53 to $0.54 that guidance implied, and non-GAAP EPS of $0.97 beat the $0.91 to $0.95 range. The $0.29 gap between the two reflects $90.2 million of acquired-intangible amortization and $72.0 million of share-based compensation, both real costs even if they are non-cash. On a GAAP basis, net income was $401.4 million, of which $27.8 million went to preferred dividends, leaving $373.6 million for common holders.
Net sales of $1.62 billion rose 42.2% from $1.14 billion a year earlier and 9.2% from the prior quarter, clearing the $1.604 billion midpoint of guidance. The mix was led by Mixed Signal Microcontrollers at $774.4 million, or 47.8% of revenue, with Analog at $459.0 million and Other Product Line at $388.1 million. Management attributed the breadth to industrial and data center demand, not a single product cycle.
December quarter revenue is guided to $1.573 billion to $1.638 billion, a midpoint of $1.6055 billion, or down 1.0% sequentially but up roughly 35.4% year over year. Non-GAAP gross margin is guided to 64.0% to 65.0%, a step below the 66.5% just delivered, and non-GAAP EPS is guided to $0.87 to $0.95. The company has now guided above its midpoint and then beaten it in each of the last four quarters shown.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-05
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