Microchip Technology reported strong financial results for its second quarter of fiscal year 2027, with net sales and profitability exceeding management's guidance and analyst expectations. Growth was driven primarily by industrial and data center applications, supported by a book-to-bill ratio well above one.
Key Highlights
- Net sales reached $1.622 billion, a 42.2% increase year-over-year and 9.2% sequential growth.
- Non-GAAP gross margin hit 66.5%, matching analyst expectations and trending toward the company's long-term target.
- Data center design wins for PCIe Gen6 switches and retimers doubled sequentially to 24 from 12 in the prior quarter.
- The company completed the acquisitions of Hailo and Vorago Technologies to expand edge AI and radiation-hardened semiconductor capabilities.
- Management expects December quarter sales to be down 1% sequentially at the midpoint, which is 5% to 7% better than historical seasonal trends.