Microchip Technology, Inc.

Microchip Technology, Inc.

MCHP

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Market Cap$39.79B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Microchip Technology, Inc.Microchip Technology, Inc.101.52.48%7%8.30.9

Earnings Call Q3 2026

February 5, 2026 - AI Summary

Strong Financial Performance: Microchip Technology reported net sales of $1.186 billion for December 2025, an increase of 4% sequentially and 15.6% year-over-year. This surpassed their guidance expectations, indicating a healthy growth trajectory driven primarily by networking, data center, and licensing business units. Non-GAAP earnings per diluted share were $0.44, surpassing guidance by $0.04.
Guidance for March 2026: The company expects net sales to be approximately $1.26 billion (plus or minus $20 million), representing a sequential growth of 6.2% and an increase of 29.8% from the previous year. Non-GAAP gross margin is projected to range between 60.5% and 61.5%, indicating continued operational efficiency despite ongoing financial challenges.
Inventory and Utilization Challenges: The company reported a decrease in inventory balance to $1.058 billion but noted charges of $51.7 million related to capacity underutilization and significant inventory reserve charges. Although inventory normalization is expected, factory utilization rates remain low, which could present ongoing operating margin headwinds until utilization improves.

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$99.50

Target Price by Analysts

33.2% upsideMicrochip Technology Target Price DetailsTarget Price
$11.40

Current Fair Value

84.7% downside

Overvalued by 84.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$39.79 Billion
Enterprise Value$45.46 Billion
Dividend Yield$1.82 (2.48%)
Earnings per Share$0.27
Beta1.74
Outstanding Shares542,500,000

Return

Return on Equity6.98%ROE
Return on Assets3.13%
Return on Invested Capital6.11%

Valuation & Multiples

P/E Ratio101.52P/E Ratio
PEG-7.6PEG
Price to Sales8.3Price to Sales
Price to Book Ratio6.79Price to Book Ratio
Enterprise Value to Revenue8.87
Enterprise Value to EBIT56.71
Enterprise Value to Net Income100
Total Debt to Enterprise0.13
Debt to Equity0.92Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
August 6, 2026
EPS Estimate
$0.70
Average shareholder expectation
Revenue Estimate
$1.46 B
Average shareholder expectation

Next Earnings Call

Expected Date
November 5, 2026
EPS Estimate
$0.92
Average shareholder expectation
Revenue Estimate
$1.61 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.4652▲ 9.00%
Total Calls27,544,094▲ 27.15%
Total Puts12,813,984▲ 57.65%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %100.62%▲ 7.35%
Total Invested$49.73B▲ 52.55%
Investors Holding1,361▲ 127.00%

ESG Score

No data

About Microchip Technology, Inc.

CEO: Steve Sanghi