Microchip Technology reported Q1 FY2027 (ended June 30, 2026) **net sales of $1.485 billion** – up **13.2% sequentially** and **38.0% year‑on‑year** – beating its May guidance midpoint of $1.456B.

GAAP results: gross margin 63.2%, operating income $336.8M (22.7% of sales), net income $202M, **EPS $0.37** (above $0.28–0.29 guide).
Non‑GAAP: gross margin 63.8%, operating income $521.1M (35.1% of sales), net income $438.6M, **EPS $0.76** (above $0.67–0.71 guide).

The company paid $246.9M in dividends and declared a **Q2 dividend of $0.455/share**. Net debt was reduced by ~$170M during the quarter.

CEO Steve Sanghi highlighted inventory days dropped from 185 to 175, gross margin exceeded guidance highs, channel sell‑through improved, and book‑to‑bill remained well above 1 – with broad‑based demand recovery across industrial, automotive, and other core end markets.

ICgoodFind Takeaway:
Microchip’s revenue beat and inventory drawdown signal MCU demand is bouncing back – industrial and auto markets are leading the recovery.