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Microchip Technology vs Arm Holdings: MCHP and ARM compared
Microchip Technology is the larger company: $1.6B of revenue in its latest quarter (Q2 FY27) against $1.4B for Arm Holdings (Q2 FY27). Microchip Technology is growing faster (+42% against +27% a year earlier). Microchip Technology is more profitable, with an operating margin of 28.6% against 13.9%.
Where the money goes: MCHP and ARM
Microchip Technology (MCHP) · Q2 FY27
Microchip Technology, Q2 FY27: revenue $1.6B (+42% year over year), operating margin 28.6%, net earnings $401M, operating cash flow $419M. The chart follows the revenue to costs, profit and cash.
Arm Holdings (ARM) · Q2 FY27
Arm Holdings, Q2 FY27: revenue $1.4B (+27% year over year), operating margin 13.9%, net earnings $130M, operating cash flow $207M. The chart follows the revenue to costs, profit and cash.
| Microchip Technology (MCHP) | Arm Holdings (ARM) | |
|---|---|---|
| Latest quarter | Q2 FY27 | Q2 FY27 |
| Revenue | $1.6B | $1.4B |
| Revenue growth, Y/Y | +42% | +27% |
| Gross margin | 65.9% | 97.1% |
| Operating margin | 28.6% | 13.9% |
| Net earnings | $401M | $130M |
| Net margin | 24.8% | 9.0% |
| Operating cash flow | $419M | $207M |
| Free cash flow | $396M | $135M |
| Market value | $32.2B | $186.8B |
| P/E | 38.4× | 196.9× |
| Analysts’ mean target | $93.29 | $273.40 |
Where the revenue comes from
Microchip Technology
- Mixed-signal Microcontrollers: $774M (48%)
- Analog: $459M (28%)
- Other: $388M (24%)
Arm Holdings
- Revenue from external customers: $1.0B (71%)
- Revenue from related parties: $424M (29%)
Questions
Which is bigger, Microchip Technology or Arm Holdings?
Microchip Technology is the larger company: $1.6B of revenue in its latest quarter (Q2 FY27) against $1.4B for Arm Holdings (Q2 FY27).
Is Microchip Technology or Arm Holdings growing faster?
Microchip Technology is growing faster (+42% against +27% a year earlier).
Which is more profitable, Microchip Technology or Arm Holdings?
Microchip Technology is more profitable, with an operating margin of 28.6% against 13.9%.
More: Microchip Technology earnings · how Microchip Technology makes money · Arm Holdings earnings · how Arm Holdings makes money
From the companies' latest 10-Q, 10-K or earnings release (10-Q filed Nov 5, 2026; 6-K filed Nov 4, 2026). Fiscal quarters can end on different dates. Not investment advice.