Microchip rebounds with 7% revenue growth; settles IRS dispute; cuts workforce by 1,500

Filed May 21, 2026 · Period ending March 31, 2026 · Compared to 10-K May 23, 2025 · ~2 min read

Key Changes

• high

  Revenue grew 7.1% in fiscal 2026 after customers reduced excess inventory, with all product lines and geographies showing improvement. Gross margin expanded 160 basis points to 57.7% driven by product mix and lower inventory reserves.

  MD&A: Revenue Recovery verify on EDGAR →
• high

  Settled long-standing IRS dispute covering fiscal 2007-2015, removing a significant contingent liability that had been in U.S. Tax Court since December 2021.

  MD&A: Tax Matters verify on EDGAR →
• high

  Headcount reduced by approximately 1,500 employees (7.7%) to 17,900 as part of March 2025 restructuring plan; Fab 2 closure completed in May 2025. Prior disclosure estimated $90-100M annual savings from 10% workforce reduction.

  Business: Workforce verify on EDGAR →