Microchip
We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications.
10-K, May 21, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0000827054-26-000016 · filed May 21, 2026
Business
How does Microchip make money?
Semiconductor Products is 97.0% of revenue.
Source and method
Revenue by segments, FY2025.
annual report FY2025 · 0000827054-25-000077 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($4.4B).
- Semiconductor Products: $4.3B · 97.0%
- Technology Licensing: $131M · 3.0%
What is left of every $100?
Of every $100 in revenue, $5 is net income.
Source and method
Of every $100 of revenue, FY2026.
Calculated: amount ÷ revenue × 100.
- Revenue: $4.7B
- Gross profit: $2.7B
- Operating income: $490M
- Net income: $230M
- Free cash flow: $871M
Where do customers sit?
No revenue-by-region breakdown in the latest annual report's XBRL data.
In the company’s words ›
“With over 35 years of technology leadership, our broad product portfolio offers a Total System Solution for our customers that can provide a large portion of the silicon requirements in their applications.”
“TSS is a combination of hardware, software and services which help our customers increase their revenue, reduce their costs and manage their risks compared to other solutions.”
“Our strategic focus includes general purpose and specialized mixed-signal microcontrollers, microprocessors, analog, FPGA, data center, networking, and memory products.”
Item 1 · Business · 10-K · 0000827054-26-000016 · filed May 21, 2026
Where did the growth actually come from?
Semiconductor Products drove 98% of growth.
Source & method
- Counted
- Segment revenue as filed, first and last fiscal year of the range.
- Formulas
- Change = segment revenue (to) − segment revenue (from); share of growth = change / total revenue change (calculated). Not allocated = total revenue − sum of reported segments (calculated, never filled in).
- Guards
- Segment break: if the company redrew its segments inside the range, no share of growth is claimed. No segment break reported for this company. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Thesis
Why do people invest?
3 reasons in the company’s own words.
Revenue +3%
“Net sales related to these products and services increased approximately 3.4% in fiscal 2026 compared to fiscal 2025.”
Item 7 · MD&A · 10-K · 0000827054-26-000016 · filed May 21, 2026
Position (in the company’s words)
“With the exception of Arrow Electronics, our largest distributor, which made up 12% and 10% of our net sales, in fiscal 2026 and in fiscal 2025, respectively, no distributor or direct customer accounted for more than 10% of our net sales.”
Item 1 · Business · 10-K · 0000827054-26-000016 · filed May 21, 2026
R&D investment
“R&D expenses for fiscal 2026 were $1.09 billion, or 23.0% of net sales, compared to $983.8 million, or 22.4% of net sales, for fiscal 2025.”
Item 7 · MD&A · 10-K · 0000827054-26-000016 · filed May 21, 2026
Number check (R&D expense): stated $1.1B matches the stored value ($1.1B, ±10%)
R&D expense: $1.1B FY2026 · +10.4% vs FY2025 · Profitability charts
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
3 of 3 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 7.1% to $4.7B.
Revenue grew 38% YoY to $1.5B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue fell 42.9%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
10.4% operating margin, up from 6.7%.
57.7% gross margin, up from 56.1%.
Operating income grew 65% to $490M.
Net income: $230M in FY2026.
R&D grew 10% to $1.1B.
SG&A grew 9.2% to $674M.
EPS diluted: $0.22 in FY2026.
22.7% operating margin, up from 3.0%.
63.2% gross margin, up from 53.6%.
Operating income grew 949% YoY to $337M.
Net income: $230M in FY2027 Q1.
R&D grew 21% YoY to $309M.
SG&A grew 16% YoY to $184M.
EPS diluted: $0.37 in FY2027 Q1.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Keeps $18 of every $100 as free cash.
Operating cash flow grew 7.1% to $962M.
Capex fell 28% to $91.1M.
Buybacks: $0 in FY2026.
Dividends grew 0.9% to $984M.
Stock-based compensation grew 42% to $255M.
Free cash flow grew 93% YoY to $498M.
Operating cash flow grew 86% YoY to $512M.
Capex fell 22% YoY to $13.9M.
Buybacks: $0 in FY2026 Q4.
Dividends grew 0.6% YoY to $247M.
Stock-based compensation grew 42% YoY to $75.0M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$240M cash vs $5.5B debt.
Total debt fell 2.4% to $5.5B.
Interest expense fell 15% to $221M.
Total assets fell 6.5% to $14.4B.
Equity fell 9.1% to $6.4B.
Cash fell 52% YoY to $272M.
Total debt fell 1.8% YoY to $5.4B.
Interest expense fell 15% YoY to $48.8M.
Total assets fell 3.8% YoY to $14.4B.
Equity fell 5.9% YoY to $6.5B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
How much revenue hangs on one customer?
One Microchip customer: $566M.
Source & method
- Counted
- Largest customers as disclosed in the annual report (share of revenue).
- Formulas
- One customer in dollars = disclosed share × total revenue of the same fiscal year (calculated), only where the filing text confirms the share is of total revenue.
- Guards
- Anonymous customers stay anonymous. Segment-based shares are never multiplied by total revenue. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (Microchip annual report)
“With the exception of Arrow Electronics, our largest distributor, which made up 12% and 10% of our net sales, in fiscal 2026 and in fiscal 2025, respectively, no distributor or direct customer accounted for more than 10% of our net sales.”
10-K · 0000827054-26-000016 · filed May 21, 2026 · basis: filing text, verified verbatim
Suppliers named by Microchip
No supplier among the covered companies is named in the filings.
Microchip holds stakes in
No stake in a covered company found in SEC filings.
Others name Microchip
2 competitor mentions (e.g. Astera Labs, NXP) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 53 risk factors, one per theme.
Supply chain and manufacturing
“Our operating results may be adversely impacted by the inability of our key suppliers to provide us with necessary raw materials, components, or equipment.”
Item 1A · Risk Factors · 10-K · 0000827054-26-000016 · filed May 21, 2026
Competition
“Intense competition in the markets we serve may lead to pricing pressures, reduced sales or reduced market share.”
Item 1A · Risk Factors · 10-K · 0000827054-26-000016 · filed May 21, 2026
Trade, government policy and geopolitics
“We may lose sales if critical materials from concentrated sources become restricted or subject to export controls.”
Item 1A · Risk Factors · 10-K · 0000827054-26-000016 · filed May 21, 2026
Economic conditions
“Our operating results are impacted by global economic conditions and may fluctuate in the future due to a number of factors that could reduce our net sales and profitability.”
Item 1A · Risk Factors · 10-K · 0000827054-26-000016 · filed May 21, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
BlackRock, Inc. holds 10%.
BlackRock, Inc.10%
13G/A · as of Jan 31, 2026 · filed Feb 6, 2026
Vanguard Capital Management LLC7.5%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
Vanguard Portfolio Management LLC6%
13G · as of Mar 31, 2026 · filed Apr 29, 2026
State Street Corp5.2% (then)
13G · as of Dec 31, 2024 · filed Feb 5, 2025 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
6 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.9.8%
65.9M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC5.3%
35.4M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Vanguard Portfolio Management LLC4.9%
33.1M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp4.4%
29.3M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Invesco Ltd.3.8%
25.4M shares · 13F filed Aug 14, 2026 · share of 13F-reported
1,315 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding. 1 large filing with inconsistent reported value per share left out.
Insiders, last 12 months (Form 4, open market)
0 purchases · 22 sales · $71.1M sold
Grants, gifts and tax withholding counted separately · window Oct 14, 2025 – Oct 14, 2026
All metrics
All metrics · 35 SEC metrics, FY2017–FY2026
Income statement 11
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| Discontinued operations | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A | ||||||||||
Balance sheet 9
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | ||||||||||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 7
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | not reported | |||||||||
| Capex | ||||||||||
| Dividends | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 4
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| NCI income | not reported | not reported | not reported | not reported | not reported | not reported | not reported | not reported | ||
| Other income (incl. interest) calc. | ||||||||||
| Pretax income | ||||||||||
| Total liabilities calc. | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values