Microchip Technology (NASDAQ:MCHP) Issues Q2 2027 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its second quarter 2027 earnings guidance on Thursday. The company provided EPS guidance of 0.910-0.950 for the period, compared to the consensus estimate of 0.760. The company issued revenue guidance of $1.6 billion-$1.6 billion, compared to the consensus revenue estimate of $1.5 billion.

Analysts Set New Price Targets

MCHP has been the subject of a number of research reports. Wall Street Zen raised Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Needham & Company LLC increased their price target on shares of Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Weiss Ratings lowered shares of Microchip Technology from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, July 24th. Cantor Fitzgerald restated an “overweight” rating and set a $125.00 price objective on shares of Microchip Technology in a research note on Monday, August 3rd. Finally, Barclays upped their price objective on shares of Microchip Technology from $80.00 to $105.00 and gave the company an “equal weight” rating in a report on Monday, May 11th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Microchip Technology presently has a consensus rating of “Moderate Buy” and an average target price of $98.85.

Microchip Technology Price Performance

Shares of NASDAQ MCHP opened at $84.69 on Friday. The company has a debt-to-equity ratio of 0.85, a current ratio of 2.09 and a quick ratio of 1.18. The firm’s 50 day simple moving average is $87.14 and its 200-day simple moving average is $81.30. Microchip Technology has a 12 month low of $48.52 and a 12 month high of $105.91. The stock has a market capitalization of $45.99 billion, a price-to-earnings ratio of 403.30, a PEG ratio of 0.75 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.06. The firm had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.46 billion. Microchip Technology had a net margin of 4.88% and a return on equity of 10.87%. The firm’s quarterly revenue was up 38.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.27 earnings per share. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Analysts expect that Microchip Technology will post 2.7 EPS for the current year.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 24th will be given a dividend of $0.455 per share. The ex-dividend date is Monday, August 24th. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.1%. Microchip Technology’s dividend payout ratio (DPR) is 866.67%.

Insider Activity at Microchip Technology

In related news, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $93.44, for a total value of $467,200.00. Following the completion of the transaction, the chief operating officer owned 135,508 shares of the company’s stock, valued at approximately $12,661,867.52. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Matthew W. Chapman sold 10,000 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $95.48, for a total value of $954,800.00. Following the transaction, the director directly owned 20,665 shares of the company’s stock, valued at approximately $1,973,094.20. The trade was a 32.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,750 shares of company stock worth $2,543,170 in the last 90 days. Corporate insiders own 1.79% of the company’s stock.

Microchip Technology News Roundup

Here are the key news stories impacting Microchip Technology this week:

• Positive Sentiment: Quarterly results exceeded expectations. Microchip reported fiscal Q1 2027 earnings of $0.76 per share, above the $0.70 consensus estimate, while revenue rose 38% year over year to $1.48 billion, topping expectations of $1.46 billion. Management cited demand recovery, inventory normalization, higher factory utilization and improved cash flow. MCHP Q1 Earnings Beat Estimates, Revenues Rise on Demand Recovery
• Positive Sentiment: Forward guidance was well above Wall Street forecasts. Microchip projected fiscal Q2 EPS of $0.91-$0.95 and revenue of approximately $1.6 billion, versus consensus estimates of $0.76 EPS and $1.5 billion in revenue. The outlook reflects strengthening demand for chips used in AI data centers, industrial, automotive and aerospace applications. Microchip Tech forecasts upbeat quarterly revenue on strong demand
• Positive Sentiment: Analysts see potential for a longer growth cycle. Commentary highlighted data-center-related revenue and AI infrastructure demand as possible drivers of sustained growth. Rosenblatt reaffirmed its “buy” rating and maintained a $120 price target. Microchip’s data center-related revenue likely drives longer up-cycle
• Neutral Sentiment: Microchip declared a quarterly dividend of $0.455 per share, payable September 9 to shareholders of record August 24. The dividend provides income support and represents an annualized yield of roughly 2.2%.
• Negative Sentiment: Truist lowered its price target to $90 from $105 and retained a “hold” rating. The revision suggests some caution about how much of the recovery is already reflected in MCHP’s valuation, despite the improved outlook. Truist price-target update

Hedge Funds Weigh In On Microchip Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Miller Capital Partners Inc. purchased a new position in Microchip Technology in the 4th quarter valued at about $29,000. EFG International AG purchased a new stake in Microchip Technology during the 4th quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of Microchip Technology by 4,663.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 524 shares of the semiconductor company’s stock valued at $33,000 after acquiring an additional 513 shares during the last quarter. Garton & Associates Financial Advisors LLC acquired a new position in shares of Microchip Technology during the fourth quarter valued at approximately $33,000. Finally, Rossby Financial LCC lifted its position in shares of Microchip Technology by 41.1% in the fourth quarter. Rossby Financial LCC now owns 628 shares of the semiconductor company’s stock valued at $40,000 after acquiring an additional 183 shares in the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.