MCHP · 8-K · 20260806PR000037
Operating Income and Margins
MICROCHIP TECHNOLOGY INC · 2026-08-06 · Importance 76 · Surprise 64 · Contradicted
GAAP operating income increased to $336.8 million, or 22.7% of sales, from $32.1 million, or 3.0%, in the year-ago quarter. Non-GAAP operating income rose to $521.1 million, or 35.1% of sales, from $222.3 million, or 20.7%. The $184.3 million year-over-year improvement in GAAP operating income reflected higher gross profit despite $47.5 million of additional reported R&D and SG&A expense. Management cited factory utilization, lower underutilization charges, and disciplined expense management as drivers of profitability improvement.
Key facts
- Second quarter fiscal 2027 GAAP operating income guidance: 28.1% to 28.9% ($166.0 to $171.0 million); Non-GAAP operating income guidance: 38.5% to 39.5%. source
- GAAP operating income for three months ended June 30, 2025: $32.1 million, compared with $336.8 million in the three months ended June 30, 2026. source
- GAAP net income before dividends on Series A Preferred Stock for quarter ended June 30, 2026: net income $229.8 million, dividends on Series A Preferred Stock $(27.8) million, resulting in net income attributable to common stockholders $202.0 million. source
- GAAP operating income for the quarter ended June 30, 2026: $336.8 million, representing 22.7% of net sales. source
- Non-GAAP operating income for the quarter ended June 30, 2026: $521.1 million, representing 35.1% of net sales. source
- GAAP net income attributable to common stockholders for the quarter ended June 30, 2026: $202.0 million. source
- Non-GAAP net income for the quarter ended June 30, 2026: $438.6 million. source
- GAAP net loss attributable to common stockholders for the quarter ended June 30, 2025: $46.4 million, or $0.09 per diluted share (prior year quarter comparison). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +20.5% | GAAP operating income for three months ended June 30, 2025: $32.1 million, compared with $336.8 million in the three months ended June 30,… |
| operating_income | positive | committed | +9.7% | Second quarter fiscal 2027 GAAP operating income guidance: 28.1% to 28.9% ($166.0 to $171.0 million); Non-GAAP operating income guidance:… |
| margin | positive | committed | +4.9% | Second quarter fiscal 2027 GAAP operating income guidance: 28.1% to 28.9% ($166.0 to $171.0 million); Non-GAAP operating income guidance:… |
| margin | positive | committed | +3.3% | Second quarter fiscal 2027 GAAP operating income guidance: 28.1% to 28.9% ($166.0 to $171.0 million); Non-GAAP operating income guidance:… |
| net_income | positive | realized | — | GAAP net income before dividends on Series A Preferred Stock for quarter ended June 30, 2026: net income $229.8 million, dividends on… |