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Microchip Technology MCHP Long Term Supply Arrangement — Contract with Customer, Liability

Other product segments

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$95.5M-0.9%

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Other financials

Income statement

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Revenue$1.3B+35.1%
Gross profit$799.6M+59.6%
Operating income$217.4M
Net income$144.2M+193%
EPS (diluted)$0.22+176%

Balance sheet

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Cash & equivalents$240.3M-68.9%
Total debt$5.6B-2.4%
Total equity$6.4B-9.1%
Total assets$14.4B-6.5%

Cash flow

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Operating cash flow$257.0M+24.8%
CapEx$14.2M0.0%
Free cash flow$242.8M+26.7%

Valuation

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Market cap$51.02B+37.1%
Enterprise value$56.42B+33.7%
P/E221.8×
P/S10.8×+2.4×

Profitability

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Gross margin57.7%+1.7pp
Operating margin10.4%
Net margin4.9%+4.9pp
FCF margin18.5%+0.9pp

Returns & leverage

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Return on equity3.4%+3.4pp
Debt / equity0.9×+0.1×
Current ratio2.1×-0.5×

Where this comes from

Reported directly by Microchip Technology in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The official record: Microchip Technology’s 10-K, filed May 21, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microchip Technology's long term supply arrangement — contract with customer, liability?
Microchip Technology (MCHP) reported long term supply arrangement — contract with customer, liability of $365.7M in Q1 2026.
How has Microchip Technology's long term supply arrangement — contract with customer, liability changed year-over-year?
Microchip Technology's long term supply arrangement — contract with customer, liability decreased by 27.1% year-over-year, from $501.5M to $365.7M.
What is the long-term trend for Microchip Technology's long term supply arrangement — contract with customer, liability?
Over 2 years (2024 to 2026), Microchip Technology's long term supply arrangement — contract with customer, liability has grown at a -39.3% compound annual growth rate (CAGR), from $3.34B to $1.23B.
What does long term supply arrangement — contract with customer, liability mean?
This represents the total financial obligation arising from long-term supply agreements where the company has received consideration from customers in advance of fulfilling performance obligations. It reflects the aggregate value of goods or services owed to customers under multi-year supply contracts. This liability is a key indicator of committed future revenue streams and customer backlog.