Microchip Forecasts $1.456 B Q1 Revenue, 35.3% Growth and $0.455 Dividend
Microchip reported Q4 net sales of $1.311 billion, up 35.1% year-over-year and 10.6% sequentially, with non-GAAP EPS of $0.57 outperforming the high end of its $0.48–$0.52 guidance. The company set June quarter net sales guidance midpoint at $1.456 billion, up 35.3% YoY and 11.0% sequentially, and declared a $0.455 dividend.
1. Q4 Financial Results
Microchip reported net sales of $1.311 billion for the quarter ended March 31, 2026, reflecting a 35.1% increase from the prior year and a 10.6% sequential rise. The company delivered non-GAAP gross margin of 61.6% and non-GAAP EPS of $0.57, topping its $0.48–$0.52 guidance range.
2. Q1 Guidance and Demand Outlook
For the quarter ending June 2026, Microchip set net sales guidance at a midpoint of $1.456 billion, indicating 35.3% year-over-year growth and 11.0% sequential growth, driven by broad-based chip demand recovery and normalized customer inventories. Management highlighted strong booking trends in data center connectivity and AI applications as catalysts for continued momentum.
3. Dividend and Capital Return
The board declared a quarterly cash dividend of $0.455 per share, payable June 5 to shareholders of record May 22, marking continued commitment to shareholder returns following $984 million returned through dividends in fiscal 2026.