Microchip Technology (MCHP) reported net income attributable to common stockholders of $373.6 million in the second fiscal quarter of 2027, ended September 30, 2026. Earnings per share (EPS) were $0.68, compared with $13.9 million and $0.03 per share in the same period a year earlier. The company says the GAAP result was affected by the amortization of intangible assets from prior acquisitions.
Revenue was $1.622 billion ($1,621.5 million), up 42.2% from $1.140 billion a year earlier and up 9.2% from the prior quarter. GAAP operating income totaled $464.5 million, with a margin of 28.6%, and gross margin was 65.9%. Free cash flow was $396.1 million, versus $51.6 million a year earlier.
On a non-GAAP basis (which excludes items such as stock-based compensation, amortization of intangibles and acquisition costs), net income was $559.2 million and non-GAAP earnings per share were $0.97. Non-GAAP operating income was $639.9 million, with a margin of 39.5%. CEO Steve Sanghi said sales came in above the high end of guidance, with "broad-based" growth across markets, driven by industrial and data center applications.
The board declared a quarterly dividend of $0.455 per share of common stock, payable on December 8, 2026 to shareholders of record on November 23, 2026. It also declared a dividend of $18.750 per share on the 7.50% Series A preferred stock, payable on December 15, 2026 to shareholders of record on December 1, 2026. Victor Peng announced on November 3, 2026 that he will leave the board due to time constraints, as he is CEO of PsiQuantum. The company completed the acquisitions of Hailo, on September 17, and Vorago Technologies, on October 8.
For the third fiscal quarter of 2027, Microchip projects revenue between $1.573 billion and $1.638 billion, and GAAP earnings per share between $0.47 and $0.50. Expected non-GAAP earnings per share are between $0.87 and $0.95. Capital expenditures (capex) are expected to be about $35 million in the quarter and approximately $100 million in fiscal year 2027.
