Microchip Technology (0K19.L) Q1 2026 Earnings Report

Microchip Technology reported QQ1 2026 revenue of $1.0755 billion, up 10.8% sequentially but down 13.4% year over year. The quarter delivered a solid gross margin of 53.6% on gross profit of $576.7 million, and EBITDA of $211.3 million (about 19.6% of revenue). However, operating income remained modest at $32.1 million (2.98% operating margin), and net income was negative at $18.6 million, yielding an EPS of -$0.086. The result highlights a positive QoQ trajectory in revenue and margin expansion relative to the prior quarter, but the year-ago comparables remain challenging and pressure on net profitability persists due to higher other expenses and depreciation/amortization drag, coupled with interest costs.

The revenue rebound reflects ongoing demand for Microchip’s embedded controller technologies and broader MCU/processor product lines, supported by an enlarged mix of high-value applications (industrial, automotive, and IoT). Yet profitability remains restrained by non-operational headwinds and cyclical semiconductor dynamics. Management commentary (as available in the call context) typically emphasizes operating discipline, continued R&D investment, and execution to drive mix improvements, though explicit forward targets were not disclosed in the provided data. The absence of balance sheet and cash flow specifics in the dataset limits a full assessment of liquidity and leverage, but the visible earnings metrics point to a company with strong gross margins that must convert operating discipline and cash efficiency into sustained profitability.