Free cash flow
Microchip Technology Free cash flow decreased by 23.9% to $242.80M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 26.7%, from $191.70M to $242.80M. Over 4 years (FY 2022 to FY 2026), Free cash flow shows a downward trend with a -23.0% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $543.60M | $533.20M | $762.70M | $633.10M | $718.50M | $682.90M | $1.14B | $596.80M | $882.10M | $541.80M | $793.80M | $389.90M | $304.20M | $22.80M | $253.40M | $191.70M | $257.70M | $51.60M | $318.90M | $242.80M |
| QoQ Change | — | -1.9% | +43.0% | -17.0% | +13.5% | -5.0% | +66.4% | -47.5% | +47.8% | -38.6% | +46.5% | -50.9% | -22.0% | -92.5% | >999% | -24.3% | +34.4% | -80.0% | +518.0% | -23.9% |
| YoY Change | — | — | — | — | +32.2% | +28.1% | +49.0% | -5.7% | +22.8% | -20.7% | -30.2% | -34.7% | -65.5% | -95.8% | -68.1% | -50.8% | -15.3% | +126.3% | +25.8% | +26.7% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is Microchip Technology's free cash flow?
- Microchip Technology (MCHP) reported free cash flow of $242.80M in Q1 2026.
- How has Microchip Technology's free cash flow changed year-over-year?
- Microchip Technology's free cash flow increased by 26.7% year-over-year, from $191.70M to $242.80M.
- What is the long-term trend for Microchip Technology's free cash flow?
- Over 4 years (2022 to 2026), Microchip Technology's free cash flow has grown at a -23.0% compound annual growth rate (CAGR), from $2.47B to $871.00M.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.