Microchip sales rise 42.2 per cent ahead of a softer December quarter
Microchip’s September-quarter sales grew 42.2 per cent from a year earlier, with industrial and data-centre applications supporting demand. Its December-quarter forecast nevertheless puts sales 1 per cent below the latest quarter at the midpoint. Management expects about 53 million dollars of infrequent revenue to disappear, while ordinary December seasonality also weighs on the comparison.
Economics & Markets··Midday
September sales exceed the earlier forecast midpoint
Microchip Technology increased sales by 42.2 per cent from a year earlier in its second quarter of fiscal 2027, which ended on September 30. The semiconductor maker’s next-quarter outlook points to softer sales after a temporary revenue benefit.[1], [2]
Quarterly net sales reached 1.622 billion dollars, up 9.2 per cent from the preceding quarter and above the 1.604 billion dollar midpoint forecast in August. Chief executive Steve Sanghi said growth extended across end markets, with support from industrial and data-centre applications.[1]
Net income and adjusted earnings rise
Net income attributable to common shareholders under generally accepted accounting principles was 373.6 million dollars, against 13.9 million dollars a year earlier. Diluted earnings were 0.68 dollars per share. Adjusted net income reached 559.2 million dollars, or 0.97 dollars per share. Those adjustments exclude items including share-based compensation, restructuring and acquisition expenses.[1]
December guidance excludes a temporary revenue contribution
Management forecast December-quarter sales of 1.573 billion dollars to 1.638 billion dollars. The midpoint is 1 per cent below September’s result but about 35.4 per cent above a year earlier. About 53 million dollars of infrequent September revenue is not expected to recur. Management said ordinary December seasonality means a 3–5 per cent sequential decline and forecast an accounting gross margin of 62.9–63.9 per cent.[1]
