MCHP · 8-K · 20260806PR000037

Operating Expense Trends

MICROCHIP TECHNOLOGY INC · 2026-08-06 · Importance 52 · Surprise 30 · No source text

Reported R&D expense increased 20.9% year over year to $308.9 million from $255.5 million, while its sales ratio declined to 20.8% from 23.8%. Reported SG&A increased 15.7% to $184.3 million from $159.3 million, while its sales ratio declined to 12.4% from 14.8%. Non-GAAP R&D rose to $267.8 million from $226.4 million, and non-GAAP SG&A rose to $158.7 million from $135.7 million. Total GAAP operating expenses increased to $602.1 million from $544.6 million, but declined to 40.6% of sales from 50.6%.

Key facts

• Second quarter fiscal 2027 GAAP operating expenses guidance: 37.3% to 37.4% of net sales (or $155.7 to $159.7 million); Non-GAAP operating expenses guidance: 27.5% of net sales. source
• Returned approximately $246.9 million to common stockholders in the June quarter through dividends. source
• GAAP operating expenses for the quarter ended June 30, 2026: $602.1 million (40.6% of net sales); Non-GAAP operating expenses: $426.5 million (28.7% of net sales). source
• Research and development expense for the quarter ended June 30, 2026: GAAP $308.9 million (20.8% of net sales); Non-GAAP R&D expense $267.8 million (18.0% of net sales). source
• Selling, general and administrative expense for the quarter ended June 30, 2026: GAAP $184.3 million (12.4% of net sales); Non-GAAP SG&A $158.7 million (10.7% of net sales). source
• Amortization of acquired intangible assets for the quarter ended June 30, 2026: $90.0 million (down from $107.6 million in prior year quarter). source
• Special charges and other, net for the quarter ended June 30, 2026: $18.9 million (compared to $22.2 million in prior year quarter). source
• GAAP other expense, net for the quarter ended June 30, 2026: $(46.9) million (compared with $(47.9) million in prior year quarter). source

Impact estimates