Microchip Technology Announces Financial Results for Fourth Quarter and Fiscal Year 2026

Microchip Technology Incorporated, a leading provider of embedded control solutions, reported strong financial results for the quarter and fiscal year ended March 31, 2026. Net sales reached $1.311 billion, a 35.1% increase year-over-year and 10.6% sequentially, surpassing the midpoint of guidance provided in February. GAAP earnings per share (EPS) were $0.21, exceeding the guided range of $0.08 to $0.12, while Non-GAAP EPS hit $0.57, above the projected $0.48 to $0.52 range. For the full fiscal year 2026, net sales totaled $4.713 billion, a 7.1% increase from the prior year. GAAP net income attributable to common stockholders was $118.8 million, impacted by acquisition-related adjustments, but Non-GAAP net income reached $933.9 million, with Non-GAAP EPS of $1.64. The company returned $984 million to shareholders through dividends. CEO Steve Sanghi attributed the results to broad-based demand improvement across product lines, noting progress in inventory normalization and disciplined execution of a nine-point recovery plan. Inventory levels were reduced by $22.3 million during the quarter, with days of inventory dropping from 201 to 185, while distributor inventory declined to 26 days. Sanghi emphasized the importance of inventory and capacity management, which he said will support higher factory utilization and long-term margin objectives. CFO Eric Bjornholt highlighted improved operating leverage and working capital management, contributing to the strong financial performance. The company expects continued momentum, with net sales guidance for the June 2026 quarter set at a midpoint of $1.456 billion, a 35.3% year-over-year increase. Microchip’s results reflect a recovery from earlier challenges, driven by stronger demand and operational efficiency.