Microchip Q1 Net Sales $1.485B, EPS $0.76; Beats Guidance
Microchip Technology reported strong first-quarter fiscal year 2027 results, with net sales reaching $1.485 billion and non-GAAP diluted EPS of $0.76, both exceeding the company's guidance. The company saw significant year-over-year and sequential growth in net sales, alongside improved operational metrics like declining inventory days and a book-to-bill ratio well above 1. Microchip also announced a quarterly dividend of 45.5 cents per share and continued to strengthen its balance sheet by reducing net debt by approximately $170 million. For the second quarter of fiscal 2027, the company expects continued growth with net sales projected between $1.589 billion and $1.618 billion and non-GAAP diluted EPS between $0.91 and $0.95.
Key Highlights
- Net sales for Q1 FY2027 were $1.485 billion, exceeding guidance of $1.456 billion.
- Non-GAAP diluted EPS was $0.76, surpassing guidance of $0.67 to $0.71.
- Net sales increased 38.0% year-over-year and 13.2% sequentially.
- Declared a quarterly cash dividend of 45.5 cents per share for the September quarter.
- Reduced net debt by approximately $170 million during the June quarter.
- Forecasts Q2 FY2027 net sales between $1.589 billion and $1.618 billion.
- Anticipates Q2 FY2027 Non-GAAP diluted EPS between $0.91 and $0.95.
- Non-GAAP gross profit expanded sequentially to 63.8%, above guidance range.
Price Impact
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