How does Microchip Technology (MCHP) make money?

Microchip Technology (MCHP) primarily makes money through Semiconductor Products Member, which accounts for 96.3% of total revenue. For TTM through Q4 2025, Microchip Technology generated $4.37B in total revenue with a net profit margin of -2.2%.

What is Microchip Technology (MCHP) gross profit margin?

Microchip Technology (MCHP) reported a gross profit margin of 51.6% for TTM through Q4 2025, equivalent to $2.25B in gross profit. This means Microchip Technology retains 51.6% of each revenue unit after direct costs of production.

What is Microchip Technology (MCHP) operating profit margin?

Microchip Technology (MCHP) reported an operating profit margin of 4.1% for TTM through Q4 2025, equivalent to $178.70M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Microchip Technology (MCHP) net profit margin?

Microchip Technology (MCHP) reported a net profit margin of -2.2% for TTM through Q4 2025, equivalent to −$96.60M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Microchip Technology (MCHP) invest in R&D?

Microchip Technology (MCHP) invested $1.01B in research and development in TTM through Q4 2025 (23.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.

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

Microchip Technology (MCHP) spent $91.10M on capital expenditures in TTM through Q4 2025 (2.1% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Microchip Technology (MCHP) free cash flow?

Microchip Technology (MCHP) generated $819.90M in free cash flow for TTM through Q4 2025 (18.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

How Microchip Technology (MCHP) Makes Money: A Visual Guide

Microchip Technology (MCHP) generated $4.37B in revenue but reported a net loss of $96.60M. Its largest revenue source is Semiconductor Products Member (96.3% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Microchip Technology (MCHP) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 5, 2026).

Frequently asked questions

How does Microchip Technology (MCHP) make money?: Microchip Technology (MCHP) primarily makes money through Semiconductor Products Member, which accounts for 96.3% of total revenue. For TTM through Q4 2025, Microchip Technology generated $4.37B in total revenue with a net profit margin of -2.2%.
What is Microchip Technology (MCHP) gross profit margin?: Microchip Technology (MCHP) reported a gross profit margin of 51.6% for TTM through Q4 2025, equivalent to $2.25B in gross profit. This means Microchip Technology retains 51.6% of each revenue unit after direct costs of production.
What is Microchip Technology (MCHP) operating profit margin?: Microchip Technology (MCHP) reported an operating profit margin of 4.1% for TTM through Q4 2025, equivalent to $178.70M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Microchip Technology (MCHP) net profit margin?: Microchip Technology (MCHP) reported a net profit margin of -2.2% for TTM through Q4 2025, equivalent to −$96.60M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Microchip Technology (MCHP) invest in R&D?: Microchip Technology (MCHP) invested $1.01B in research and development in TTM through Q4 2025 (23.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Microchip Technology (MCHP) spend on capital expenditures?: Microchip Technology (MCHP) spent $91.10M on capital expenditures in TTM through Q4 2025 (2.1% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Microchip Technology (MCHP) free cash flow?: Microchip Technology (MCHP) generated $819.90M in free cash flow for TTM through Q4 2025 (18.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.