Microchip Technology Incorporated (MCHP) Earnings Call Transcripts

Microchip Technology Incorporated's Latest Earnings Call - Q1 FY2027

Microchip Technology Incorporated reported strong Q1 Fiscal Year 2027 results, with net sales of $1.485 billion, up 38% year-over-year, and non-GAAP earnings per share of $0.76, exceeding guidance by $0.07. The company provided optimistic guidance for the upcoming quarter, expecting net sales to increase by approximately 8% sequentially, driven by robust demand in data centers and other end markets. Management highlighted significant growth potential in data center sales, projecting a total of $1 billion for calendar year 2026, a 69% increase from 2025.

Reported metrics

Guidance from management

Management expects net sales for Q2 FY 2027 to increase by approximately 8% sequentially, with non-GAAP gross margins projected between 66% and 67%. Non-GAAP EPS is expected to be between $0.91 and $0.95.

What management said

So I would say we're kind of, like we said last quarter, that inventory reserves have normalized at this point in time. We did reserve quite a bit of product based on our accounting policies and where the business was at during the down cycle, and there is sell-through. There's sell-through every quarter. And new reserves are coming down. So it definitely is a net benefit to margins, but we don't think that's going a...

So we think the entire quarter of increased prices, although there are some expenses, too, we are getting cost increases also from foundries and OSATs and all that. So there is a balancing on that, too. But full quarter of increased prices will balance some of these one-time costs that you talked about or one-time benefits you talked about. One is a very rich mix, product mix in licensing, and second being this one...

What analysts pressed on

Analysts expressed concerns about the sustainability of the current growth cycle and potential inventory issues among direct customers. There were questions regarding the impact of rising input costs on margins and the ability to maintain pricing power in the face of these challenges.

Main topics on the call

• Data Center Sales Growth — Management reported that total net sales from data centers are expected to reach approximately $1 billion in calendar year 2026, representing a 69% increase from $591 million in 2025. Steve Sanghi stated, "Data center ex...
• Strong Financial Performance — Microchip's Q1 results showed net sales of $1.485 billion, up 38% year-over-year, and non-GAAP gross margins improved to 63.8%. Eric Bjornholt noted, "All of our non-GAAP financial results were above our guidance provide...
• Inventory Management — The company reported a decrease in inventory days to 175, down 10 days from the previous quarter. Management indicated that they are nearing their target range of 130 to 150 days of inventory, stating, "We are getting pr...
• Guidance for Q2 FY 2027 — Management expects net sales for the September quarter to be up approximately 8% sequentially, with non-GAAP EPS guidance between $0.91 and $0.95. Steve Sanghi mentioned, "We expect our net sales for the September quarte...

Read the full Microchip Technology Incorporated transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 120 Microchip Technology Incorporated earnings call transcripts on record, spanning January 7, 2020 to August 6, 2026. Based on this history, Microchip Technology Incorporated reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

MCHP

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Calls on record

120

First call

January 7, 2020

Most recent

August 6, 2026

Reporting cadence

quarterly