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

Microchip Technology (NASDAQ:MCHP) updated 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 EPS 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.

Microchip Technology Stock Down 4.4%

Shares of NASDAQ:MCHP opened at $74.36 on Friday. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The firm’s 50 day moving average price is $87.34 and its 200 day moving average price is $81.28. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The stock has a market cap of $40.38 billion, a price-to-earnings ratio of 354.11, a price-to-earnings-growth ratio of 0.78 and a beta of 1.76.

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

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s dividend payout ratio is 866.67%.

Analyst Ratings Changes

A number of analysts have weighed in on MCHP shares. Truist Financial raised their price target on Microchip Technology from $69.00 to $105.00 and gave the company a “hold” rating in a research note on Friday, May 8th. TD Cowen lowered their price objective on Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research report on Monday, July 13th. Susquehanna increased their price objective on Microchip Technology from $95.00 to $120.00 and gave the company a “positive” rating in a report on Friday, May 8th. UBS Group reissued a “buy” rating on shares of Microchip Technology in a research report on Tuesday, June 2nd. Finally, Rosenblatt Securities restated a “buy” rating and set a $120.00 target price on shares of Microchip Technology in a research note on Friday. Four analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $99.76.

Insider Buying and Selling at Microchip Technology

In other Microchip Technology news, COO Richard J. Simoncic sold 5,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Matthew W. Chapman sold 3,000 shares of the business’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $97.52, for a total value of $292,560.00. Following the completion of the transaction, the director owned 17,665 shares in the company, valued at $1,722,690.80. This trade represents a 14.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 26,750 shares of company stock worth $2,543,170. 1.79% of the stock is owned by insiders.

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Microchip exceeded quarterly expectations, reporting adjusted EPS of $0.76 versus the $0.70 consensus and revenue of $1.48 billion versus $1.46 billion. Revenue increased 38% year over year, while EPS rose substantially from $0.27 in the prior-year period. Microchip Technology earnings report
• Positive Sentiment: The company’s fiscal second-quarter outlook was well above Wall Street expectations. Microchip guided to EPS of $0.91–$0.95 versus a $0.76 consensus and revenue of approximately $1.6 billion versus estimates near $1.5 billion. Management cited strengthening demand for chips used in AI data centers, industrial equipment, automotive applications and aerospace. Reuters: Microchip forecasts upbeat quarterly revenue
• Positive Sentiment: Analyst coverage highlighted potential operating leverage as sales recover. Microchip’s alliance with Micron, involving PCIe Gen 6 switches and SSD solutions, could improve its position in AI data-center infrastructure and increase competition with Broadcom and Astera Labs. Zacks: Microchip and Micron alliance
• Neutral Sentiment: The earnings presentation and call emphasized the recovery trajectory, demand trends and margin potential, giving investors more detail on how quickly the improved revenue environment may translate into profits. Microchip Technology Q1 2027 earnings call transcript
• Negative Sentiment: Despite the favorable results, investors may be taking profits or questioning how much of the recovery is already reflected in the share price. Microchip’s elevated valuation, including a reported P/E above 350, leaves limited room for execution disappointments. The key issue is whether operating leverage can justify the premium investors are paying. Seeking Alpha: Microchip operating leverage and valuation

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Dorsey & Whitney Trust CO LLC increased its holdings in shares of Microchip Technology by 1.6% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 8,973 shares of the semiconductor company’s stock valued at $572,000 after purchasing an additional 143 shares during the period. UMB Bank n.a. lifted its holdings in shares of Microchip Technology by 0.7% during the fourth quarter. UMB Bank n.a. now owns 21,443 shares of the semiconductor company’s stock worth $1,366,000 after purchasing an additional 146 shares during the period. Aptus Capital Advisors LLC lifted its holdings in shares of Microchip Technology by 5.2% during the fourth quarter. Aptus Capital Advisors LLC now owns 3,609 shares of the semiconductor company’s stock worth $230,000 after purchasing an additional 178 shares during the period. Rossby Financial LCC boosted its position in 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 buying an additional 183 shares during the last quarter. Finally, Voya Financial Advisors Inc. increased its holdings in Microchip Technology by 3.5% in the 2nd quarter. Voya Financial Advisors Inc. now owns 5,709 shares of the semiconductor company’s stock worth $402,000 after buying an additional 195 shares during the period. Institutional investors and hedge funds own 91.51% of the company’s stock.

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.