Analyst Conference Summary

semiconductors

conference date: November 5, 2026 @ 2:00 PM Pacific Time
for quarter ending: September 30, 2026 (Q2, second fiscal quarter 2027)

Forward-looking statements

Overview: strong sales ramp

Basic data (GAAP):

Revenue was $ billion, up % sequentially from $1.48 billion, and up % from $ billion in the year-earlier quarter.

Net income was $ million, up % sequentially from $202 million, and up from $ million in the year-earlier quarter.

EPS (diluted earnings per share) were $, up % sequentially from $0.37, and up from $ year-earlier.

Guidance:

Conference Highlights:

CEO Steve Sanghi said ""

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

New strategic growth pillars are connectivity, compute, and AI/ML (machine learning).

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

Inventory at distributors was at days at end of quarter. Inventory is now low overall, some replenishment needs to take place. Book to bill was well above 1. Lead times are now increasing on many products. Requests for expedited shipping are increasing. Made price adjustments which started the second half of August.

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 $439 million and up % from $ million year-earlier. EPS was $, up % sequentially from $0.76 and up % from $ year-earlier.

Cash and investments ended at $ million, up sequentially from $272 million. Cash flow from operations was $ million. $ million capital spend in quarter. $ million free cash flow. Long term debt was about $ billion, down about $ million in quarter. $ 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.

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