Microchip Technology vs Skyworks Solutions
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KIRA’s take AI analyst
I put Microchip Technology and Skyworks Solutions side by side, using each one’s latest annual report. Here is what stands out:
- Microchip Technology is the larger business, with $4.7B of revenue in fiscal 2026 against $4.1B for Skyworks Solutions.
- Microchip Technology grew revenue faster (7.1%, against −2.2%).
- Skyworks Solutions kept more of each dollar of sales as operating profit (12.2% operating margin, against 10.4%).
- Skyworks Solutions turned more of its sales into free cash flow (27.1% FCF margin, against 18.5%).
- Skyworks Solutions earned a higher return on the capital invested in it (8.5%, against 3.5%).
- Investors pay more for each dollar of Microchip Technology’s earnings: a P/E of 111.6x against 43.2x for Skyworks Solutions.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Microchip Technology
MCHP
3/11
Revenue growthGross marginPiotroski F-score
Skyworks Solutions
SWKS
8/11
5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | MCHP FY26 | SWKS FY25 |
|---|---|---|
| Size | ||
| Market cap | $41.8B | $12.6B |
| Revenue | $4.7B | $4.1B |
| Free cash flow | $871M | $1.1B |
| Net income | $230M | $477M |
| Growth | ||
| Revenue growth | 7.1% | −2.2% |
| 5-year growth | −2.8% | 4.0% |
| Share count change | 1.5% | −4.0% |
| Profitability | ||
| Gross margin | 57.7% | 41.2% |
| Operating margin | 10.4% | 12.2% |
| Net margin | 4.9% | 11.7% |
| FCF margin | 18.5% | 27.1% |
| Return on capital | 3.5% | 8.5% |
| Return on equity | 3.4% | 7.9% |
| Balance sheet | ||
| Net debt | $5.3B | −$878M |
| Net debt / EBITDA | 4.5x | −0.9x |
| Dividends and buybacks | $984M | $1.3B |
| Valuation & quality | ||
| P/E | 111.6x | 43.2x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.