How does Microchip Technology (MCHP) make money?

Microchip Technology (MCHP) generates revenue primarily from Semiconductor Products Member, which accounted for 96.5% of total revenue in TTM through Q1 2026. The company reported $4.71B in revenue and converted 4.3% of it into net profit, equivalent to roughly $202M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Microchip Technology (MCHP)?

Microchip Technology (MCHP) reported a gross profit margin of 57.7% in TTM through Q1 2026, equivalent to $2.72B in gross profit on $4.71B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Microchip Technology (MCHP)?

Microchip Technology (MCHP) reported an operating profit margin of 10.4% in TTM through Q1 2026, equivalent to $490M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Microchip Technology (MCHP)?

Microchip Technology (MCHP) reported a net profit margin of 4.3% in TTM through Q1 2026, equivalent to $202M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Microchip Technology (MCHP) profitable?

Yes. Microchip Technology (MCHP) reported $202M in net income for TTM through Q1 2026, with a net profit margin of 4.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Microchip Technology (MCHP) invest in research and development?

Microchip Technology (MCHP) invested $1.09B in research and development during TTM through Q1 2026, roughly 23.0% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Microchip Technology (MCHP) spend on capital expenditures?

Microchip Technology (MCHP) spent $91.1M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Microchip Technology (MCHP) generate?

Microchip Technology (MCHP) generated $871M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 18.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Microchip Technology (MCHP)?

Microchip Technology (MCHP) had an effective tax rate of 15.9% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Microchip Technology (MCHP)?

Microchip Technology (MCHP) reports revenue across 2 reportable product segments, led by Semiconductor Products Member at 96.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Microchip Technology Makes Money: 2026 Visual Revenue Map

Microchip Technology (MCHP) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 21, 2026).

Microchip Technology discloses geographic revenue only in annual filings. to view the full breakdown.

Microchip Technology (MCHP) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Microchip Technology (MCHP), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Semiconductor Products Member	$4.55B	96.5%
Technology Licensing Member	$164M	3.5%
Total	$4.71B	100%

Semiconductor Products Member$4.55B
Technology Licensing Member$164M
Total$4.71B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Microchip Technology (MCHP) reports revenue across 2 reportable product segments; the largest segment was Semiconductor Products Member at 96.5%, followed by Technology Licensing Member (3.5%).

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