Description

Microchip Technology’s $1.311 Billion Rebound: Is The Recovery Finally Taking Hold?

Microchip Technology Incorporated reported financial results for its fourth quarter and fiscal year 2026 with sequential and year-over-year growth in revenue, margins, and profitability, supported by recovery across several end markets and operational improvements. Net sales for the March quarter reached $1.311 billion, representing a 10.6% sequential increase and a 35.1% rise compared to the prior-year quarter, exceeding previous guidance. For the fiscal year, net sales were $4.713 billion, up 7.1% from fiscal 2025. The company’s end market distribution remained relatively steady, with industrial (31%), data center and compute (18%), automotive (17%), aerospace and defense (16%), communication (9%), and consumer (9%) sectors forming its revenue base. On a non-GAAP basis, gross margins increased to 61.6% in the March quarter, despite capacity underutilization charges of $46.6 million. Operating expenses accounted for 31% of sales, leading to an operating income of 30.6% of sales. Non-GAAP net income was $327.