Microchip revenue up 38% as recovery plan yields results; IRS settlement closes 2007-2015 dispute

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

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  Revenue rose 38.0% YoY to $1.5B in Q1 FY2027, driven by customers reducing excess inventory and new design wins entering production. Operating income surged to $336.8M from $32.1M, with operating margin expanding to 22.7% from 3.0%.

  MD&A: Revenue and Operating Income verify on EDGAR →
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  Gross margin improved 960 basis points to 63.2%, driven by favorable product mix, lower unabsorbed capacity charges ($13.0M favorable), reduced inventory reserves ($68.6M favorable), and higher licensing revenue ($9.6M favorable).

  MD&A: Gross Margin verify on EDGAR →
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  Company reached settlement with IRS in September 2025 for fiscal 2007-2015 transfer-pricing disputes, resolving Tax Court petitions filed in 2021 and 2023. U.S. and Germany tax contingencies removed from material-risk disclosure.

  MD&A: Tax Matters; Legal Proceedings verify on EDGAR →