Microchip Technology (NASDAQ:MCHP) Updates Q4 2026 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its fourth quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 0.480-0.520 for the period, compared to the consensus EPS estimate of 0.450. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.2 billion.

Microchip Technology Stock Down 2.6%

NASDAQ:MCHP opened at $76.01 on Friday. Microchip Technology has a 1 year low of $34.13 and a 1 year high of $81.43. The stock has a 50-day moving average price of $70.01 and a two-hundred day moving average price of $65.59. The stock has a market cap of $41.08 billion, a price-to-earnings ratio of -262.10, a PEG ratio of 2.00 and a beta of 1.46. The company has a current ratio of 2.25, a quick ratio of 1.20 and a debt-to-equity ratio of 0.80.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a positive return on equity of 7.08% and a negative net margin of 1.57%.The company had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter last year, the firm posted $0.20 earnings per share. Microchip Technology’s revenue was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. As a group, equities analysts expect that Microchip Technology will post 1.03 earnings per share for the current year.

Microchip Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd will be issued a $0.455 dividend. This represents a $1.82 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, February 23rd. Microchip Technology’s dividend payout ratio is -404.44%.

Analysts Set New Price Targets

A number of brokerages recently commented on MCHP. Rosenblatt Securities raised their price objective on shares of Microchip Technology from $80.00 to $115.00 and gave the stock a “buy” rating in a report on Friday. Piper Sandler lifted their price target on Microchip Technology from $80.00 to $85.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Wells Fargo & Company boosted their price target on Microchip Technology from $68.00 to $70.00 and gave the company an “equal weight” rating in a report on Friday. Wolfe Research set a $85.00 price objective on Microchip Technology in a research report on Tuesday, January 6th. Finally, Needham & Company LLC increased their price objective on Microchip Technology from $77.00 to $84.00 and gave the stock a “buy” rating in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Microchip Technology has an average rating of “Moderate Buy” and a consensus target price of $86.27.

Insider Activity

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

Key Headlines Impacting Microchip Technology

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

• Positive Sentiment: Multiple broker upgrades and higher price targets — notable raises include JPMorgan to $95 (overweight), Mizuho to $90 (outperform), Rosenblatt to $115 (buy), and Needham to $84 — these lifts signal fresh upside expectations. Benzinga
• Positive Sentiment: Q3 results: MCHP beat EPS (reported $0.44 vs. $0.43 consensus), revenue up ~15.6% YoY, and management raised Q4 EPS guidance to $0.480–$0.520 (above consensus) — a constructive operational recovery and improving margins. Earnings Report
• Positive Sentiment: Strategic and cash returns: company announced a $0.455 quarterly dividend (yield ~2.4%) and a collaboration with Hyundai on single‑pair Ethernet for automotive connectivity — supports long‑term TAM in automotive/industrial markets. Dividend Hyundai Collaboration
• Positive Sentiment: Unusual options activity: extremely large call buying (≈87,550 calls, ~1,038% above average) — signals speculative/positioning interest that can amplify upside moves if catalysts continue.
• Neutral Sentiment: Citigroup trimmed its target slightly (from $92 to $91) but kept a Buy rating — a modest adjustment that leaves upside intact but is not a strong directional signal. Benzinga
• Negative Sentiment: Macro/supply headwind: Reuters reports Microchip forecasted Q4 profit below some estimates and flagged memory‑supply issues — this created investor caution despite the beat. Reuters
• Negative Sentiment: Some analysts remain conservative or cut targets — Wells Fargo (raised PT to $70 but rated equal weight), Truist to $68 (hold), and TD Cowen lowered target to $70 — these calls imply limited near‑term upside and help explain selling pressure. TickerReport/Wells Fargo Benzinga TipRanks/TD Cowen
• Negative Sentiment: Market reaction: several headlines note shares fell after the quarter despite the beat — suggests investors focused on supply commentary and cautious forward earnings phrasing. Zacks

Institutional Trading of Microchip Technology

A number of hedge funds have recently made changes to their positions in MCHP. State of Wyoming lifted 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 in the 3rd quarter worth about $52,000. Johnson Financial Group Inc. boosted its holdings in Microchip Technology by 373.2% in the 3rd quarter. Johnson Financial Group Inc. now owns 1,112 shares of the semiconductor company’s stock valued at $71,000 after purchasing an additional 877 shares during the period. Geneos Wealth Management Inc. grew its position in shares of Microchip Technology by 101.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,221 shares of the semiconductor company’s stock worth $59,000 after purchasing an additional 616 shares in the last quarter. Finally, MUFG Securities EMEA plc acquired a new position in shares of Microchip Technology during the 2nd quarter worth approximately $111,000. 91.51% of the stock is owned by institutional investors and hedge funds.

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.