Microchip Technology Inc

Company facts

Industry

Semiconductors & Related Devices

Headquarters

Chandler, Arizona

Most recent report

8-K, filed Aug 19, 2026

Incorporated

Delaware

Filings on record

1,000+ filings

On EDGAR

CIK 827054

Fiscal year ends

March

Filer status

Large accelerated filer

What to read: Jun 2026 10-Q

SECSift found 3 of 13 sections worth reading, with 2 positive, 6 notable, and 6 negative flags.

• Financial Statements (Item 1)

  Core financial statements with dramatic revenue and profit turnaround.
  Notable

  • No common stock repurchases in Q1; remaining authorization of $1.56B unused.
  Negative

  • Malaysian tax dispute could cost up to $474.7M if the IRB prevails; case uncertain.

• Management's Discussion (Item 2)

  Core MD&A with 38% sales jump, 63% gross margin, $475M Malaysian tax risk, covenant stepdown.
  Positive

  • Inventory reserve charges had a favorable $68.6M impact vs prior year, a huge swing.
  • Unabsorbed capacity charges improved by $13.0M as factory utilization normalizes.
  Notable

  • Arrow Electronics accounted for 12% of net sales in Q1 FY2027, up from 11%.
  • Preferred stock dividends were $27.8M in Q1 FY2027, a new recurring cash outflow.
  • Leverage covenant stepped down to 4.00x at June 2026, next step to 3.75x in Sep 2026.
  • Commercial paper reduced to $211M from $349M in the quarter, using operating cash flow.

• Risk Factors (Item 1A)

  Many specific numbers: $5.4B debt, no buybacks, $474.7M tax dispute, 52% distributor sales, 76% foreign sales.
  Notable

  • 76% foreign sales, with 19% China, 15% Taiwan, exposing trade risks.
  Negative

  • Outside foundries supplied 67% of net sales in Q1 FY2027, up from 65% in FY2026.
  • Distributor sales rose to 52% of net sales in Q1 FY2027 from 47% in FY2026.
  • Self-insured for cybersecurity; no specific cyber insurance.
  • Debt principal $5.40B, no share repurchases in June 2026 quarter, using borrowings for dividends.
  • Downgraded by one rating agency in March 2025, increasing borrowing costs.

What changed: Jun 2026 vs. Dec 2025

About 8% of MCHP's Jun 2026 10-Q is new information. 54 paragraphs were added, 205 changed, and 118 removed. Below are the most important lines SECSift identified.

• Item 1A 105
• Item 2 66
• Item 1 42
• Item 5 3
• Item 6 2
• Item 3 1
• Item 4 1