Microchip Technology (NASDAQ:MCHP) Updates Q1 2027 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its first quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 0.670-0.710 for the period, compared to the consensus earnings per share estimate of 0.560. The company issued revenue guidance of $1.4 billion-$1.5 billion, compared to the consensus revenue estimate of $1.3 billion.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. Wall Street Zen downgraded Microchip Technology from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. KeyCorp reaffirmed an “overweight” rating and issued a $85.00 target price on shares of Microchip Technology in a research report on Friday, February 6th. Needham & Company LLC boosted their target price on Microchip Technology from $77.00 to $84.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Weiss Ratings raised Microchip Technology from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, April 24th. Finally, B. Riley Financial boosted their target price on Microchip Technology from $85.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, January 12th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Stock Down 1.3%

MCHP traded down $1.34 during midday trading on Thursday, reaching $101.58. 15,825,512 shares of the company were exchanged, compared to its average volume of 9,952,994. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.16 and a current ratio of 2.16. The company’s fifty day moving average price is $73.27 and its 200 day moving average price is $69.20. The company has a market cap of $54.97 billion, a price-to-earnings ratio of -350.28, a price-to-earnings-growth ratio of 1.38 and a beta of 1.75. Microchip Technology has a one year low of $48.52 and a one year high of $103.24.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, May 7th. The semiconductor company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.Microchip Technology’s quarterly revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the company posted $0.11 earnings per share. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. As a group, analysts expect that Microchip Technology will post 1.16 EPS for the current year.

Insider Buying and Selling

In other Microchip Technology news, CEO Steve Sanghi sold 76,469 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.58, for a total transaction of $7,155,969.02. Following the completion of the sale, the chief executive officer directly owned 9,385,834 shares of the company’s stock, valued at approximately $878,326,345.72. The trade was a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 526,552 shares of company stock worth $47,130,465. Insiders own 1.94% of the company’s stock.

Microchip Technology News Roundup

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

• Positive Sentiment: Quarterly earnings beat — Microchip reported $0.57 EPS vs. $0.50 expected, signaling stronger profitability trends and beating consensus. Earnings Press Release
• Positive Sentiment: Raised guidance — MCHP updated 1Q FY2027 guidance with EPS of $0.67–$0.71 (consensus ~$0.56) and revenue of roughly $1.4–$1.5B (consensus ~$1.3B), pointing to continued demand momentum. Reuters: Forecasts Above Estimates
• Positive Sentiment: Top?line strength — Q4 net sales were $1.311B, up 35.1% year?over?year and above the midpoint of prior guidance, supporting management’s upbeat outlook. GlobeNewswire: Financial Results
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.455 per share, which supports yield?seeking investors and signals confidence in cash flow. GlobeNewswire: Dividend Announcement
• Positive Sentiment: New product momentum — Announced LAN878x/LAN888x SPE PHY families (automotive/industrial) and Intel?collab timing modules for data centers/5G, reinforcing addressable market expansion in auto, industrial and infrastructure. GlobeNewswire: Product Release
• Neutral Sentiment: Analyst/coverage notes — Recent analyst commentary and articles debate valuation after a large run?up; these shape sentiment but don’t change fundamentals immediately. Yahoo Finance: Valuation Discussion
• Negative Sentiment: Profitability quirks — Despite the EPS beat, public filings note a negative net margin metric and mixed historical valuation multiples, which can raise questions about one?off items or margin sustainability. Earnings Press Release (margins)

Hedge Funds Weigh In On Microchip Technology

Several institutional investors have recently modified their holdings of the business. State Street Corp grew its holdings in shares of Microchip Technology by 2.8% in the fourth quarter. State Street Corp now owns 28,863,048 shares of the semiconductor company’s stock valued at $1,839,153,000 after acquiring an additional 783,157 shares in the last quarter. Boston Partners grew its holdings in shares of Microchip Technology by 9.5% in the third quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after acquiring an additional 1,406,885 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Microchip Technology by 4.8% in the fourth quarter. Invesco Ltd. now owns 14,992,128 shares of the semiconductor company’s stock valued at $955,298,000 after acquiring an additional 684,561 shares in the last quarter. FIL Ltd grew its holdings in shares of Microchip Technology by 7.2% in the fourth quarter. FIL Ltd now owns 10,445,721 shares of the semiconductor company’s stock valued at $665,601,000 after acquiring an additional 699,450 shares in the last quarter. Finally, Rafferty Asset Management LLC grew its holdings in shares of Microchip Technology by 41.0% in the second quarter. Rafferty Asset Management LLC now owns 6,203,762 shares of the semiconductor company’s stock valued at $436,559,000 after acquiring an additional 1,803,945 shares in the last quarter. 91.51% of the stock is owned by institutional investors.

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.