Microchip Technology (MCHP) Q3 FY2026 earnings: revenue $1.2 billion, up 15.6% on the year

Microchip Technology Inc. (MCHP) reported revenue of $1.2 billion for Q3 FY2026, the quarter ended 31 December 2025, up 15.6% on the same quarter a year earlier. Net income was $63 million, and diluted earnings per share $0.06. The figures are the company's own, from the 10-Q it filed with the SEC on 5 February 2026.

Revenue

$1.2 billion

+15.6% on the year · +4.0% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

12.8%

3.0% a year earlier

Q4 FY2024Q3 FY2026

Net income

$63 million

+50.4% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$0.06

+100.0% on the quarter

Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 13 new.

Net sales rose 15.6% year over year: Net sales were $1.186 billion, up 4.0% sequentially and 15.6% from the year-ago quarter.
Non-GAAP earnings of $0.44 per share: Non-GAAP net income was $252.8 million, or $0.44 per diluted share, against $107.3 million, or $0.20, in the prior-year quarter.
Non-GAAP gross margin up from 52%: Non-GAAP gross margin was 60.5%, up from 52% in the March 2025 quarter. Management attributed the change to cumulative operational improvements.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	1,186	1,140	1,026	+4.0%	+15.6%
Cost of revenue	479	502	465	-4.7%	+3.1%
Gross profit	707	638	561	+10.8%	+25.9%
Gross margin	59.6%	55.9%	54.7%
Research and development	274	262	246	+4.6%	+11.4%
Selling, general and administrative	168	172	158	-2.2%	+6.5%
Operating income	152	88.9	30.9	+70.6%	+390.9%
Operating margin	12.8%	7.8%	3.0%
Interest expense	55.9	56.3	68.7	-0.7%	-18.6%
Pre-tax income	93.6	31.8	-46.1	+194.3%
Income tax	30.9	-9.9	7.5		+312.0%
Effective tax rate	33.0%	-31.1%	n/a
Net income	62.7	41.7	-53.6	+50.4%
Net margin	5.3%	3.7%	-5.2%
Diluted EPS	$0.06	$0.03	-$0.10	+100.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	341	88.1	272	+287.5%	+25.7%
Capital expenditure	22.5	36.5	18.1	-38.4%	+24.3%
Free cash flow	319	51.6	253	+518.0%	+25.8%
Free cash flow margin	26.9%	4.5%	24.7%
Cash from investing	-44.5	-62.0	-42.1
Cash from financing	-283	-356	70.5
Depreciation and amortisation	172	173	187	-0.5%	-8.0%
Share-based compensation	72.6	61.6	49.4	+17.9%	+47.0%
Buybacks	0.0	0.0	6.5
Dividends paid	246	246	245	+0.1%	+0.6%
Dividend per share	$0.46	$0.46	$0.46	0.0%	0.0%
Diluted shares, weighted	546m	545m	537m	+0.1%	+1.5%
Shares outstanding at period end	541m	540m	538m	+0.1%	+0.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	6,560	6,696	6,032	-2.0%	+8.8%
Debt	5,366	5,376	6,750	-0.2%	-20.5%
Other liabilities	2,399	2,398	2,851	+0.0%	-15.9%
Total liabilities and equity	14,326	14,470	15,632	-1.0%	-8.4%
Fixed assets	1,130	1,154	1,152	-2.0%	-1.9%
Goodwill	6,696	6,696	6,685	0.0%	+0.2%
Intangible assets	2,099	2,170	2,518	-3.2%	-16.6%
Cash and equivalents	251	237	586	+5.9%	-57.2%
Receivables	731	746	857	-2.0%	-14.7%
Inventory	1,058	1,095	1,356	-3.4%	-22.0%
Other assets	2,361	2,373	2,478	-0.5%	-4.7%
Total assets	14,326	14,470	15,632	-1.0%	-8.4%

Questions

What was Microchip Technology's revenue in Q3 FY2026?

Microchip Technology (MCHP) reported revenue of $1.2 billion for Q3 FY2026, the quarter ended 31 December 2025, up 15.6% on the same quarter a year earlier.

How much did Microchip Technology earn in Q3 FY2026?

Net income for Q3 FY2026 was $63 million, and diluted earnings per share $0.06.

When did Microchip Technology report Q3 FY2026 results?

Microchip Technology filed its 10-Q for the quarter ended 31 December 2025 with the SEC on 5 February 2026.

Quarterly results, the last 20 quarters

	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	1,758	1,844	1,964	2,073	2,169	2,233	2,289	2,254	1,766	1,326	1,241	1,164	1,026	970	1,076	1,140	1,186	1,311	1,485	1,622
Cost of revenue	604	624	654	675	698	713	730	727	646	536	504	495	465	469	499	502	479	512	546	554
Gross profit	1,153	1,220	1,310	1,398	1,471	1,519	1,558	1,527	1,120	790	737	668	561	501	577	638	707	800	939	1,068
Gross margin	66%	66%	67%	67%	68%	68%	68%	68%	63%	60%	59%	57%	55%	52%	54%	56%	60%	61%	63%	66%
R&D	245	259	269	269	282	298	298	293	266	240	242	241	246	255	256	262	274	294	309	318
SG&A	178	187	189	202	203	204	204	197	172	162	150	157	158	152	159	172	168	174	184	187
Operating income	515	550	701	755	812	848	903	885	529	254	219	147	30.9	-100	32.1	88.9	152	217	337	464
Operating margin	29%	30%	36%	36%	37%	38%	39%	39%	30%	19%	18%	13%	3%	-10%	3%	8%	13%	17%	23%	29%
Interest expense	62.1	57.8	50.3	53.3	52.8	47.5	47.2	46.8	49.2	55.1	61.8	59.1	68.7	69.6	57.4	56.3	55.9	51.7	48.8	47.3
Pre-tax income	442	479	647	699	762	802	848	834	484	200	162	91.5	-46.1	-168	-15.8	31.8	93.6	164	290	418
Tax rate	20%	9%	22%	22%	24%	25%	21%	20%	13%	23%	20%	14%	n/a	n/a	n/a	-31%	33%	12%	21%	4%
Net income	353	438	507	546	580	604	666	667	419	155	129	78.4	-53.6	-155	-18.6	41.7	62.7	144	230	401
Net margin	20%	24%	26%	26%	27%	27%	29%	30%	24%	12%	10%	7%	-5%	-16%	-2%	4%	5%	11%	15%	25%
Diluted EPS	$0.62	$0.33	$0.90	$0.98	$1.04	$1.09	$1.21	$1.21	$0.77	$0.28	$0.24	$0.14	-$0.10	-$0.29	-$0.09	$0.03	$0.06	$0.21	$0.37	$0.68
Operating cash flow	853	748	840	793	1,278	710	993	616	853	430	377	43.6	272	206	276	88.1	341	257	512	419
Capital expenditure	90.7	115	122	110	141	113	111	74.4	59.5	40.1	72.9	20.8	18.1	14.2	17.9	36.5	22.5	14.2	13.9	23.1
Free cash flow	763	633	718	683	1,137	597	882	542	794	390	304	22.8	253	192	258	51.6	319	243	498	396
Buybacks	166	260	195	247	230	274	140	340	115	387	72.7	17.3	6.5	0.0	0.0	0.0	0.0	0.0	n/a	n/a
Dividends paid	129	141	153	166	180	196	209	223	237	242	243	244	245	245	246	246	246	247	247	248
Shares outstanding	556m	555m	552m	550m	548m	545m	544m	541m	540m	537m	537m	537m	538m	539m	540m	540m	541m	542m	543m	544m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 December 2025, filed 5 February 2026: the filing.