Microchip Technology Incorporated

Microchip Technology Incorporated Earnings Recaps

MCHP Information Technology 1 recap
Q3 2026 Feb 6, 2026

Microchip Technology posted solid Q3 results for FY 2026, reporting a sequential revenue increase of 4% to $1.186 billion, exceeding previous guidance, driven by strategic advancements in automotive and industrial connectivity.

Key takeaways
  • Non-GAAP gross margin reached 60.5%, despite inventory and capacity underutilization charges totaling $110.1 million.
  • Non-GAAP net income was $252.8 million, translating to earnings per diluted share of $0.44, surpassing guidance by $0.04.
  • Operating cash flow was robust at $341.4 million, with adjusted free cash flow at $305.6 million.
  • A significant decrease in net debt to adjusted EBITDA ratio to 4.18 from 4.69, reflecting improved financial leverage.
  • Strategic partnership with Hyundai Motor Group announced, enhancing the company's position in the automotive Ethernet market.
Full recap