Microchip Technology (NASDAQ:MCHP) Releases Q3 2026 Earnings Guidance

Key Points

• Microchip set Q3 FY2026 EPS guidance of $0.34–$0.40 per share (the company also referenced a $0.40 figure), above the consensus of $0.33, while revenue guidance was $1.1 billion, essentially in line with estimates.
• In the most recent quarter Microchip reported EPS of $0.35 (vs. $0.33 consensus) and revenue of $1.14 billion (vs. $1.13 billion), although revenue fell 2% year‑over‑year and net margin was negative 4.39%.
• The company declared a quarterly dividend of $0.455 per share (annualized $1.82) for a yield of 2.8%, despite a negative payout ratio that reflects recent earnings weakness.

Microchip Technology (NASDAQ:MCHP - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.400-0.400 for the period, compared to the consensus estimate of 0.330. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Microchip Technology Trading Down 0.0%

MCHP opened at $65.34 on Friday. The company has a quick ratio of 1.20, a current ratio of 2.25 and a debt-to-equity ratio of 0.80. The stock's fifty day moving average is $60.50 and its two-hundred day moving average is $65.17. The company has a market capitalization of $35.31 billion, a P/E ratio of -145.19, a PEG ratio of 2.04 and a beta of 1.47. Microchip Technology has a 52 week low of $34.13 and a 52 week high of $77.20.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last posted its quarterly earnings results on Thursday, November 6th. The semiconductor company reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. Microchip Technology had a positive return on equity of 5.21% and a negative net margin of 4.39%.The business's revenue was down 2.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.46 EPS. Microchip Technology has set its Q3 2026 guidance at 0.340-0.400 EPS. Analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 9th. Shareholders of record on Monday, November 24th were issued a dividend of $0.455 per share. This represents a $1.82 annualized dividend and a yield of 2.8%. The ex-dividend date was Monday, November 24th. Microchip Technology's dividend payout ratio is presently -404.44%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Cantor Fitzgerald upgraded shares of Microchip Technology from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $65.00 to $85.00 in a report on Tuesday, December 16th. Citigroup reduced their price objective on shares of Microchip Technology from $90.00 to $80.00 and set a "buy" rating for the company in a research note on Friday, November 7th. Bank of America upped their target price on Microchip Technology from $67.00 to $72.00 and gave the stock a "neutral" rating in a report on Friday, December 5th. TD Cowen cut their price target on Microchip Technology from $65.00 to $60.00 and set a "hold" rating on the stock in a report on Friday, November 7th. Finally, KeyCorp reissued an "overweight" rating on shares of Microchip Technology in a research report on Wednesday, December 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $76.00.

Insider Activity

In other news, CFO James Eric Bjornholt sold 4,292 shares of the stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $50.39, for a total transaction of $216,273.88. Following the completion of the sale, the chief financial officer owned 30,089 shares in the company, valued at approximately $1,516,184.71. This represents a 12.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.94% of the company's stock.

Institutional Investors Weigh In On Microchip Technology

Institutional investors have recently added to or reduced their stakes in the business. IHT Wealth Management LLC purchased a new position in shares of Microchip Technology in the 2nd quarter valued at approximately $236,000. Brevan Howard Capital Management LP acquired a new position in Microchip Technology during the 2nd quarter valued at approximately $7,377,000. Ameriprise Financial Inc. raised its holdings in shares of Microchip Technology by 255.7% in the second quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company's stock worth $150,271,000 after buying an additional 1,534,829 shares during the last quarter. California State Teachers Retirement System lifted its stake in shares of Microchip Technology by 1.0% during the second quarter. California State Teachers Retirement System now owns 825,989 shares of the semiconductor company's stock worth $58,125,000 after buying an additional 7,813 shares during the period. Finally, Worldquant Millennium Advisors LLC purchased a new stake in shares of Microchip Technology during the second quarter valued at $101,359,000. Institutional investors and hedge funds own 91.51% of the company's stock.

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.

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