Microchip Tech (MCHP) Reports Strong Q4 and FY 2026 Results, Exceeding EPS Guidance

Microchip Technology Inc. (NASDAQ:MCHP) is one of the best large cap stocks to buy under $100. On May 7, Microchip reported FQ4 2026 net sales of $1.311 billion, up 35.1% year-over-year, with GAAP EPS of $0.21 and non-GAAP EPS of $0.57, exceeding previous guidance. For the full fiscal year 2026, net sales rose 7.1% to $4.713 billion, generating GAAP net income of $118.8 million ($0.22 per diluted share) and non-GAAP net income of $933.9 million ($1.64 per diluted share).

The company successfully executed its recovery plan, returning $984.0 million to shareholders through dividends and reducing inventory by $320.9 million from its peak in late 2024 to bring days of inventory down to 185 days. Driven by improving demand conditions, normalizing customer inventory, and design wins in data center and AI applications, factory utilization is being increased to capture growing operating leverage.

For FQ1 2027, Microchip Technology Inc. (NASDAQ:MCHP) expects strong momentum to continue, forecasting a net sales midpoint of $1.456 billion, which represents an 11% sequential increase. Q1 non-GAAP gross margins are projected between 62.25% and 63.25%, with non-GAAP EPS expected to rise to a range of $0.67 to $0.71, while full-year capital expenditures will be managed at ~$100 million.

Microchip Technology Inc. (NASDAQ:MCHP) provides smart, connected, and secure embedded control solutions. Its semiconductor products business designs, develops, manufactures, and markets mixed-signal microcontrollers, development tools, analog and interface products, timing and connectivity devices, and memory products.

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