MCHP · 8-K · 20260806PR000037
Gross Margin Drivers
MICROCHIP TECHNOLOGY INC · 2026-08-06 · Importance 76 · Surprise 64 · In source text
GAAP gross profit was $938.9 million, or 63.2% of net sales, compared with $576.7 million, or 53.6%, a year earlier. Non-GAAP gross profit was $947.6 million, or 63.8%, versus $584.4 million, or 54.3%, in the prior-year quarter. Management attributed the sequential margin expansion to higher factory utilization, lower underutilization charges, and improved operating leverage. Inventory days declined from 185 on March 31, 2026 to 175 on June 30, 2026.
Key facts
- GAAP gross profit dollars for quarter ended June 30, 2026: $938.9 million; Non-GAAP gross profit dollars: $947.6 million (share-based compensation expense adjustment $8.7 million). source
- GAAP gross profit percentage for the quarter ended June 30, 2026: 63.2%. source
- Non-GAAP gross profit percentage for the quarter ended June 30, 2026: 63.8%. source
- Cost of sales for quarter ended June 30, 2026: $545.8 million (implying gross profit $938.9 million on net sales $1,484.7 million). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | — | Cost of sales for quarter ended June 30, 2026: $545.8 million (implying gross profit $938.9 million on net sales $1,484.7 million). |