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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…

Microchip Technology revenue by segment, Q2 FY27Microchip Technology revenue by segment, Q2 FY27Mixed-signal Microcontrollers$774MAnalog$459MOther$388M
Microchip Technology: revenue by line, Q4 FY25 to Q2 FY27Microchip Technology: revenue by line, Q4 FY25 to Q2 FY27Mixed-signal Microcon…AnalogOtherMixed-signal Microcontrollers: $774M latest$774MAnalog: $459M latest$459MOther: $388M latest$388MQ4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27Q2 FY27
The mix barely moved between Q4 FY25 and Q2 FY27.
Microchip Technology revenue by quarterMicrochip Technology revenue by quarter$970MQ4 FY25$1.1BQ1 FY26$1.1BQ2 FY26$1.2BQ3 FY26$1.3BQ4 FY26$1.5BQ1 FY27$1.6BQ2 FY27
Microchip Technology: where each dollar of revenue goesMicrochip Technology: where each dollar of revenue goesCost of revenue34¢Gross profit66¢Operating expenses37¢Operating profit29¢Income tax1¢Net earnings25¢Operating cash flow26¢Free cash flow24¢

Revenue by segment, Q2 FY27

SegmentRevenueShareQ/QY/Y
Mixed-signal Microcontrollers$774M47.8%+5%+32%
Analog$459M28.3%+12%+43%
Other$388M23.9%+16%+66%

Where each dollar of revenue goes

LineQ2 FY27% of revenue
Revenue$1.6B100.0%
Cost of revenue$554M34.1%
Gross profit$1.1B65.9%
Operating expenses$604M37.2%
Operating profit$464M28.6%
Income tax$16.1M1.0%
Net earnings$401M24.8%
Operating cash flow$419M25.9%
Free cash flow$396M24.4%

Revenue, quarter by quarter

QuarterRevenueY/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%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.