Microchip Technology (NASDAQ:MCHP) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Microchip Technology (NASDAQ:MCHP) announced its earnings results on Thursday. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.38 by $0.06, FiscalAI reports. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The firm had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.19 billion. Microchip Technology updated its Q4 2026 guidance to 0.480-0.520 EPS.

Microchip Technology Price Performance

NASDAQ MCHP traded down $0.19 during trading on Thursday, reaching $78.04. 11,222,812 shares of the company traded hands, compared to its average volume of 9,569,665. Microchip Technology has a 1-year low of $34.13 and a 1-year high of $81.43. The company has a market cap of $42.18 billion, a price-to-earnings ratio of -173.42, a P/E/G ratio of 1.96 and a beta of 1.46. The stock’s 50 day moving average price is $69.03 and its two-hundred day moving average price is $65.49. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.20 and a current ratio of 2.25.

Key Microchip Technology News

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

• Positive Sentiment: Beat consensus on EPS — reported $0.44 vs. $0.38 expected, with revenue roughly in line at $1.19B; this shows continuing operational recovery. Press Release
• Positive Sentiment: Raised Q4 FY2026 EPS guidance to $0.480–$0.520 (above the ~$0.45 consensus) and issued revenue guidance roughly in line with expectations — a forward-looking beat that supports earnings power. Earnings Release
• Positive Sentiment: Board declared a quarterly cash dividend of $0.455/share, payable March 10 — supports yield-focused investors and signals cash-flow confidence. Dividend Release
• Positive Sentiment: Cantor Fitzgerald raised its price target to $100, indicating some analyst confidence in upside. Analyst Note
• Neutral Sentiment: Partnership with Hyundai Motor Group to explore single‑pair Ethernet for automotive connectivity — strategically positive long term but unlikely to move near-term earnings materially. Collaboration Release
• Negative Sentiment: Stock dropped on the print despite the beat — investors focused on GAAP weakness: a negative net margin (-4.39%) and material underutilization/inventory charges (~$122.8M) that depressed headline profits. That muted the upside from the EPS beat. Market Reaction
• Negative Sentiment: Revenue growth was modest (first YoY growth since 2024) and largely in line with consensus — not a blowout to justify a multiple expansion, especially given one-time charges and mixed margin metrics. Revenue Coverage

Insider Activity at Microchip Technology

In related news, CFO James Eric Bjornholt sold 4,292 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total value of $216,273.88. Following the sale, the chief financial officer owned 30,089 shares of the company’s stock, valued at $1,516,184.71. The trade was a 12.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steve Sanghi sold 98,814 shares of the company’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $80.55, for a total value of $7,959,467.70. Following the completion of the sale, the chief executive officer owned 9,922,319 shares in the company, valued at $799,242,795.45. This trade represents a 0.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 121,615 shares of company stock valued at $9,641,654 in the last 90 days. 1.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. State of Wyoming increased its holdings in shares of Microchip Technology by 78.1% during the second quarter. State of Wyoming now owns 618 shares of the semiconductor company’s stock worth $43,000 after buying an additional 271 shares in the last quarter. Fulcrum Asset Management LLP acquired a new stake in Microchip Technology during the 3rd quarter valued at $52,000. Geneos Wealth Management Inc. raised its position in Microchip Technology by 101.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company’s stock valued at $59,000 after purchasing an additional 616 shares during the last quarter. Johnson Financial Group Inc. boosted its stake in Microchip Technology by 373.2% in the third quarter. Johnson Financial Group Inc. now owns 1,112 shares of the semiconductor company’s stock worth $71,000 after purchasing an additional 877 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in shares of Microchip Technology during the second quarter worth $111,000. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on MCHP shares. Susquehanna lifted their price objective on Microchip Technology from $75.00 to $90.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Piper Sandler increased their price objective on Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a research report on Thursday, January 15th. KeyCorp reaffirmed an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. Exane BNP Paribas upgraded shares of Microchip Technology from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 22nd. Finally, UBS Group boosted their price objective on shares of Microchip Technology from $85.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, January 26th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $82.73.

Microchip Technology Company Profile

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.