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How Microchip Technology (MCHP) makes money
Microchip Technology (MCHP) made $1.6B of revenue in the second quarter fiscal 2027 (Q2 FY27), +42% from a year earlier. Mixed-signal Microcontrollers brought in $774M (48%); Analog brought in $459M (28%); Other brought in $388M (24%). Of every dollar of revenue, 66¢ was left as gross profit, 29¢ was left as operating profit, 25¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q2 FY27
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Mixed-signal Microcontrollers | $774M | 47.8% | +5% | +32% |
| Analog | $459M | 28.3% | +12% | +43% |
| Other | $388M | 23.9% | +16% | +66% |
Where each dollar of revenue goes
| Line | Q2 FY27 | % of revenue |
|---|---|---|
| Revenue | $1.6B | 100.0% |
| Cost of revenue | $554M | 34.1% |
| Gross profit | $1.1B | 65.9% |
| Operating expenses | $604M | 37.2% |
| Operating profit | $464M | 28.6% |
| Income tax | $16.1M | 1.0% |
| Net earnings | $401M | 24.8% |
| Operating cash flow | $419M | 25.9% |
| Free cash flow | $396M | 24.4% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q2 FY27 | $1.6B | +42% |
| Q1 FY27 | $1.5B | +38% |
| Q4 FY26 | $1.3B | +35% |
| Q3 FY26 | $1.2B | +16% |
| Q2 FY26 | $1.1B | -2% |
| Q1 FY26 | $1.1B | -13% |
| Q4 FY25 | $970M | -27% |
From Microchip Technology's 10-Q filed Nov 5, 2026 (on EDGAR).
Questions
How does Microchip Technology make money?
Microchip Technology (MCHP) made $1.6B of revenue in the second quarter fiscal 2027 (Q2 FY27), +42% from a year earlier. Mixed-signal Microcontrollers brought in $774M (48%); Analog brought in $459M (28%); Other brought in $388M (24%). Of every dollar of revenue, 66¢ was left as gross profit, 29¢ was left as operating profit, 25¢ was left as net earnings.
What is Microchip Technology's biggest business?
Mixed-signal Microcontrollers: $774M in the second quarter fiscal 2027, 48% of revenue, +32% from a year earlier.
What is Microchip Technology's profit margin?
Net earnings were $401M, 24.8% of revenue, in the second quarter fiscal 2027; the operating margin was 28.6%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.