Microchip Swings to $230M Profit, CEO Adopts 10b5-1 Plan to Sell 950K Shares
MCHP sits 67% above its 52-week low of $48.52.
Summary
Microchip Technology swung to a $230 million profit in fiscal Q1 2027 on 38% revenue growth. CEO Steve Sanghi adopted a 10b5-1 plan to sell up to 950,236 shares, and the company disclosed a potential $475 million Malaysian tax liability.
Updates
· dpa-AFX — Microchip guided Q2 revenue to $1.589-$1.618 billion with adjusted EPS of $0.91-$0.95.
Key Events · Earnings and Guidance · MCHP
-
Q1 Profit Swing
Driven by 38% revenue growth to $1.48 billion and gross margin expansion to 63.2%, net income reached $229.8 million ($0.37/share), a sharp reversal from the $18.6 million loss a year ago.
-
CEO 10b5-1 Trading Plan
On May 15, 2026, CEO Steve Sanghi adopted a Rule 10b5-1 plan to sell up to 950,236 shares acquired via option exercises, with sales permitted as early as August 21, 2026.
-
Malaysian Tax Dispute
The Malaysian Inland Revenue Board has assessed income taxes and penalties of up to MYR 1.9 billion (~$474.7 million) for fiscal 2020; the company is contesting the assessment and believes it will prevail.
-
Convertible Debt Trigger
Because the stock price exceeded the conversion threshold, the 2017 Senior Convertible Debt became convertible at the holders' option starting July 1, 2026; the outstanding principal is $37.9 million.
Analysis · MCHP · Manufacturing
A dramatic turnaround defines Microchip's Q1 FY2027, as the end of inventory destocking fuels a 38% revenue surge and nearly 10 points of gross margin expansion. While the operating performance impresses, two disclosures warrant attention: CEO Steve Sanghi has adopted a pre-arranged trading plan to sell up to 950,236 shares starting August 21, and the company faces a potential $475 million Malaysian tax liability. The CEO's planned sales, though executed under a 10b5-1 plan, represent a significant monetization event that investors will weigh against the improving fundamentals.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, MCHP was trading at $80.79 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $40.4B. The 52-week trading range was $48.52 to $105.91. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.