Microchip Technology, Inc.
MCHP
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+ FollowMarket Cap$40.32B
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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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$11.24
84.8% downside
Current Fair Value
84.8% downsideOvervalued by 84.8% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $40.32 Billion |
|---|---|
| Enterprise Value | $45.99 Billion |
| Dividend Yield | $1.82 (2.46%) |
| Earnings per Share | $0.27 |
| Beta | 1.76 |
| Outstanding Shares | 542,500,000 |
Return
| Return on Equity | 6.98% |
|---|---|
| Return on Assets | 3.13% |
| Return on Invested Capital | 6.11% |
Valuation & Multiples
| P/E Ratio | 102.6 |
|---|---|
| PEG | -7.68 |
| Price to Sales | 8.23 |
| Price to Book Ratio | 6.73 |
| Enterprise Value to Revenue | 8.98 |
| Enterprise Value to EBIT | 57.38 |
| Enterprise Value to Net Income | 102 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | 0.92 |
Revenue Sources
No data
Insider Trades
Last Earnings Call
Report Date
August 6, 2026
EPS Estimate
$0.70
Average shareholder expectationRevenue Estimate
$1.46 B
Average shareholder expectationNext Earnings Call
Expected Date
November 5, 2026
EPS Estimate
$0.94
Average shareholder expectationRevenue Estimate
$1.61 B
Average shareholder expectationInstitutional Put/Call Ratio
Market sentiment based on institutional option activity.
| Put/Call Ratio | 0.0000▼ 46.52% |
|---|---|
| Total Calls | -▼ 100.00% |
| Total Puts | 326,500▼ 97.45% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 1.92%▼ 98.71% |
|---|---|
| Total Invested | $811.09M▼ 98.37% |
| Investors Holding | 316▼ 1046.00% |
ESG Score
No data
About Microchip Technology, Inc.
17,900 employees
CEO: Steve Sanghi Operating across the Americas, Europe, and Asia, Microchip Technology Incorporated is a leading developer, manufacturer, and distributor of intelligent, interconnected, and robust embedded control solutions. The company's extensive produ...