MCHPNEUTRAL

MCHP Gross Margin Analysis

63.2%

Updated 222h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering direct production costs, and MCHP’s current 63.2% means it keeps $0.632 of every sales dollar before operating expenses.

Sector Performance

74th percentile

MCHP

63.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

61.0%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of revenue left after covering direct production costs, and MCHP’s current 63.2% means it keeps $0.632 of every sales dollar before operating expenses.

That level sits well above the sector median of 45.6%, placing MCHP in the 75th percentile among peers. The year-over-year change is N/A, but the quarter-over-quarter change is +3.6%, and the historical values show an increase from 61.0% to 63

Frequently Asked Questions

What does the Gross Margin tell investors about MCHP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MCHP's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.