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Microchip Technology cash flow, quarter by quarter

Latest: Q2 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$396M in Q2 FY27 · $1.5B over twelve months

Operating cash flow$419M
Capital spending−$23.1M
Free cash flow+$396M
Cash / net income1.0×
Cash conversion cycle194 days

Analysis

In Q2 FY27, Microchip Technology generated $419M of operating cash flow and spent $23.1M on capital projects, leaving free cash flow of $396M. That is $344M more than in Q2 FY26 ($51.6M).

Over the twelve months to Sep 30, 2026, operating cash flow was $1.5B; the largest uses were dividends ($987M), net borrowing (+) / repaid (−) ($751M), other investing ($174M); besides operations, cash came from other financing ($700M), shares issued ($65.0M); the cash balance rose by $220M.

Operating cash flow was $419M against net income of $401M — 1.0× profit, roughly in line with earnings. The largest differences: depreciation & amortization +$156M, stock-based pay +$72.0M, payables −$67.1M.

Its cash conversion cycle was 194 days (receivables 55 + inventory 180 − payables 41).

Free cash flow

Microchip Technology: free cash flow by quarterMicrochip Technology: free cash flow by quarter$253MQ3 FY25$192MQ4 FY25$258MQ1 FY26$51.6MQ2 FY26$319MQ3 FY26$243MQ4 FY26$498MQ1 FY27$396MQ2 FY27
Operating cash flow less capital spending.
Microchip Technology: operating cash flow against capital spendingMicrochip Technology: operating cash flow against capital spendingOperating cash flowCapital spending$272M$18.1MQ3 FY25$206M$14.2MQ4 FY25$276M$17.9MQ1 FY26$88.1M$36.5MQ2 FY26$341M$22.5MQ3 FY26$257M$14.2MQ4 FY26$512M$13.9MQ1 FY27$419M$23.1MQ2 FY27
Latest (Q2 FY27): Operating cash flow $419M, Capital spending $23.1M.

Capital allocation, year by year

Microchip Technology: where the cash came from (up) and went (down), by fiscal yearMicrochip Technology: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingBuybacksDividendsFY22: Operating cash flow $2.8BFY22: Net borrowing −$951MFY22: Shares issued $70.5MFY22: Asset sales $14.1MFY22: Capital spending −$370MFY22: Buybacks −$426MFY22: Dividends −$504M$2.9BFY22FY23: Operating cash flow $3.6BFY23: Net borrowing −$1.5BFY23: Shares issued $82.3MFY23: Asset sales $900KFY23: Capital spending −$486MFY23: Buybacks −$946MFY23: Dividends −$695M$3.7BFY23FY24: Operating cash flow $2.9BFY24: Net borrowing −$1.2BFY24: Shares issued $82.1MFY24: Asset sales $400KFY24: Capital spending −$285MFY24: Buybacks −$982MFY24: Dividends −$912M$3.0BFY24FY25: Operating cash flow $898MFY25: Net borrowing −$186MFY25: Shares issued $1.5BFY25: Capital spending −$126MFY25: Buybacks −$96.5MFY25: Dividends −$976M$2.4BFY25FY26: Operating cash flow $962MFY26: Net borrowing −$1.0BFY26: Shares issued $61.7MFY26: Capital spending −$91.1MFY26: Dividends −$984M$1.0BFY26
Over these 5 years operating cash flow totalled $11.2B; the largest uses were net borrowing ($4.8B) and dividends ($4.1B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$457M
Debt$5.5B
Net debt$5.1B
Due within a year$387M

Microchip Technology funds itself: free cash flow was $1.5B over the last twelve months, and $457M of cash and investments stands against $5.5B of debt ($387M due within a year, 1.2× covered by cash).

Microchip Technology: debt maturities by year (FY26)Microchip Technology: debt maturities by year (FY26)$387MYear 1$1.0BYear 2$1.0BYear 3$1.9BYear 4$1.2BYear 5
Principal due in each year as disclosed in the annual report, against $457M of cash and investments now.

Where the cash came from and went

Microchip Technology: sources (+) and uses (−) of cash, Q2 FY27Microchip Technology: sources (+) and uses (−) of cash, Q2 FY27Operating cash flow$419MDividends−$248MCash drawn (+) / kept (−)−$185MNet borrowing (+) / repaid (−)$153MOther investing−$76.4MOther financing−$32.0MTaxes on employees’ shares−$28.7MCapital spending−$23.1MShares issued$20.6M
Microchip Technology: sources (+) and uses (−) of cash, TTM to Q2 FY27Microchip Technology: sources (+) and uses (−) of cash, TTM to Q2 FY27Operating cash flow$1.5BDividends−$987MNet borrowing (+) / repaid (−)−$751MOther financing$700MCash drawn (+) / kept (−)−$220MOther investing−$174MTaxes on employees’ shares−$87.8MCapital spending−$73.7MShares issued$65.0M

From profit to cash

Microchip Technology: net income to operating cash flow, Q2 FY27Microchip Technology: net income to operating cash flow, Q2 FY27Net income$401MDepreciation & amortization$156MStock-based pay$72.0MDeferred taxes−$40.4MReceivables$7.0MInventory−$65.6MPayables−$67.1MIncome taxes payable$6.7MOther operating capital−$53.6MOperating cash flow$419M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 FY275518041194
Q1 FY275717436194
Q4 FY265618432208
Q3 FY265720732232
Q2 FY266120730238
Q1 FY266222529257
Q4 FY257225434292
Q3 FY258526740313

Every quarter

QuarterOperating cash flowCapital spendingBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q2 FY27$419M−$23.1M—−$248M$153M$20.6M−$185M$396M
Q1 FY27$512M−$13.9M—−$247M−$138M$13.0M−$32.0M$498M
Q4 FY26$257M−$14.2M—−$247M−$754M$19.2M$10.4M$243M
Q3 FY26$341M−$22.5M—−$246M−$11.7M$12.2M−$13.9M$319M
Q2 FY26$88.1M−$36.5M—−$246M$1.1B$17.9M$330M$51.6M
Q1 FY26$276M−$17.9M—−$246M−$174M$12.4M$205M$258M
Q4 FY25$206M−$14.2M—−$245M−$1.1B$20.0M−$186M$192M
Q3 FY25$272M−$18.1M−$6.5M−$245M−$248M$11.8M−$300M$253M

Microchip Technology: income statement and cash flow

Microchip Technology, Q2 FY27: revenue $1.6B (+42% year over year), operating margin 28.6%. The chart follows the revenue to costs, profit and cash.

Microchip Technology: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.