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

Microchip Technology (NASDAQ:MCHP) issued an update on its first quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.670-0.710 for the period, compared to the consensus 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.

Microchip Technology Stock Performance

NASDAQ MCHP opened at $101.58 on Friday. The stock has a market cap of $54.97 billion, a PE ratio of -350.28, a P/E/G ratio of 1.38 and a beta of 1.75. The company has a current ratio of 2.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.82. Microchip Technology has a twelve month low of $48.52 and a twelve month high of $103.24. The stock has a fifty day simple moving average of $73.27 and a 200-day simple moving average of $69.20.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Microchip Technology had a positive return on equity of 7.16% and a negative net margin of 1.57%.The company’s revenue was up 35.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.11 EPS. Microchip Technology has set its Q1 2027 guidance at 0.670-0.710 EPS. Equities analysts anticipate that Microchip Technology will post 1.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.455 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.8%. Microchip Technology’s dividend payout ratio is currently -627.59%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on MCHP shares. Needham & Company LLC increased their price target on Microchip Technology from $84.00 to $120.00 and gave the stock a “buy” rating in a report on Friday. Zacks Research cut Microchip Technology from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 24th. Piper Sandler increased their price target on Microchip Technology from $80.00 to $85.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. Stifel Nicolaus set a $90.00 price target on Microchip Technology in a report on Friday, February 6th. Finally, Argus upgraded Microchip Technology to a “strong-buy” rating in a report on Monday, February 9th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $87.57.

Insider Buying and Selling

In related news, CEO Steve Sanghi sold 416,581 shares of the firm’s stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $88.53, for a total transaction of $36,879,915.93. Following the completion of the transaction, the chief executive officer directly owned 9,495,805 shares in the company, valued at $840,663,616.65. This trade represents a 4.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 526,552 shares of company stock worth $47,130,465. Company insiders own 1.94% of the company’s stock.

Microchip Technology News Summary

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

• Positive Sentiment: Q4 results beat and management raised near‑term outlook: revenue $1.311B (+35.1% YoY), non‑GAAP EPS $0.57 vs $0.50 consensus, and fiscal Q1 guidance (EPS $0.670–0.710; revenue $1.4B–$1.5B) well above Street estimates — the main driver of the stock’s upside. Microchip Tech forecasts quarterly revenue above estimates on strong chip demand
• Positive Sentiment: Board declared a quarterly cash dividend of $0.455/share (payable June 5, record/ex‑div May 22), yielding ~1.8% — modest income support and signals confidence in cash flow. Microchip Technology Announces Quarterly Cash Dividend on Common Stock of 45.5 Cents Per Share
• Positive Sentiment: New product wins expand addressable markets: announced next‑gen Single Pair Ethernet PHY families for automotive/industrial (supports MACsec, TSN, functional safety) — helps capture Software‑Defined Vehicle and industrial Ethernet demand. Next‑Generation 100/1000BASE‑T1 Single Pair Ethernet PHYs Integrate MACsec Security, Time Sensitive Networking and Functional Safety
• Positive Sentiment: Data center product collaboration with Intel — new MD‑990 timing modules target distributed AI and 5G vRAN servers, expanding Microchip’s presence in low‑latency datacenter infrastructure. Microchip And Intel Timing Modules Spotlight Data Center Valuation Questions
• Positive Sentiment: Sector analyst momentum: Morgan Stanley raised price targets across semiconductors, including Microchip — supportive macro/sector backdrop. Morgan Stanley raises price targets across semiconductor sector
• Neutral Sentiment: Earnings call transcript and slide deck are available for detail on product demand, inventory trends and margin drivers (useful if you model forward margins). Microchip Technology Incorporated (MCHP) Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Investor commentary on the recent price run-up questions valuation — many articles note a large multi‑month surge; this is a reminder to weigh growth vs stretched multiples. Is It Too Late To Consider Microchip Technology (MCHP) After Its Recent Share Price Surge
• Negative Sentiment: GAAP profitability nuances: despite strong non‑GAAP results, MarketBeat notes a negative GAAP net margin (one‑time/adjustment effects may be weighing on GAAP profit); investors should check whether charges are recurring. Microchip Technology issued its quarterly earnings data

Hedge Funds Weigh In On Microchip Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of MCHP. Rafferty Asset Management LLC boosted its holdings in Microchip Technology by 41.0% during the 2nd 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 during the period. Ameriprise Financial Inc. boosted its holdings in Microchip Technology by 255.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,135,140 shares of the semiconductor company’s stock valued at $150,271,000 after acquiring an additional 1,534,829 shares during the period. Worldquant Millennium Advisors LLC purchased a new position in shares of Microchip Technology in the 2nd quarter valued at about $101,359,000. Boston Partners boosted its stake in shares of Microchip Technology by 9.5% in the 3rd quarter. Boston Partners now owns 16,234,332 shares of the semiconductor company’s stock valued at $1,044,024,000 after buying an additional 1,406,885 shares during the period. Finally, Marshall Wace LLP boosted its stake in shares of Microchip Technology by 236.8% in the 3rd quarter. Marshall Wace LLP now owns 1,720,200 shares of the semiconductor company’s stock valued at $110,471,000 after buying an additional 1,209,467 shares during the period. 91.51% of the stock is currently owned by hedge funds and other 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.