Analyst Conference Summary

semiconductors

conference date: May 7, 2026 @ 2:00 PM Pacific Time
for quarter ending: March 31, 2026 (Q4, fourth fiscal quarter 2026)

Forward-looking statements

Overview:

Basic data (GAAP):

Revenue was $ billion, up % sequentially from $1.19 billion, and up % from $ billion in the year-earlier quarter.

Net income was $ million, up sequentially from negative $62.7 million, and down % from $ million in the year-earlier quarter.

EPS (diluted earnings per share) were $, up sequentially from $0.06, and up from negative $ year-earlier.

Guidance:

Conference Highlights:

CEO Steve Sanghi said ""

Declared a 45.5 cent dividend for shareholders of record on May 23, payable June 10, 2026. Going forward expects for cash flow to exceed the dividend, and excess will be used to pay off debt.

Revenue was % from mixed signal MCUs; % analog; % other. By end market % industrial, % data center, % defense, % automotive, % consumer appliance, % communications.

Microchip closed Fab 2 in mid-May 2025. It is on rotating schedules at Fabs 4 and 5. CHIPS Act activity has been paused.

days of inventory at end of quarter, down sequentially from 201 days. Targetting 130 to 150 days. Inventory at distributors is at days, which is normal. Lead times are very short. Inventories at Microchip ended the quarter at $ billion, down slightly. Believes substantial inventory reduction has also taken place at end customers.

As usual, many new products were added in the quarter. Microchip conserving capital but supporting new, fast-growing products.

Non-GAAP numbers: Net income was $ million, up % sequentially from $253 million and up % from $ million year-earlier. EPS was $, up % sequentially from $0.44 and up % from $ year-earlier.

Cash and investments ended at $ million, up sequentially from $250 million. Cash flow from operations was $ million. $ million capital spend in quarter. $ million free cash flow. Long term debt was about $ billion. $ million used for dividends. $0 million used for stock repurchases.

GAAP cost of goods sold was $ million, leaving gross profit of $ million. Operating expenses of $ million consisted of: research and development $ million; selling, general and administrative $ million; amortization $ million; and special charges $ million. Leaving operating income of $ million. Other expense $ million. Income tax $ million. Net income $ million. Dividends on Series A Preferred stock $ million. Leaving $ million net income attributable to common stockholders.

Q&A selective summary:

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