Microchip Technology Incorporated Announces Quarterly Dividend of $0.46 (NASDAQ:MCHP)

Microchip Technology Incorporated (NASDAQ:MCHPGet Free Report) declared a quarterly dividend on Thursday, August 6th. Shareholders of record on Monday, August 24th will be given a dividend of 0.455 per share by the semiconductor company on Wednesday, September 9th. This represents a c) dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, August 24th.

Microchip Technology has raised its dividend payment by an average of 0.2%per year over the last three years and has increased its dividend annually for the last 23 consecutive years. Microchip Technology has a dividend payout ratio of 72.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Microchip Technology to earn $3.61 per share next year, which means the company should continue to be able to cover its $1.82 annual dividend with an expected future payout ratio of 50.4%.

Microchip Technology Stock Down 4.4%

MCHP stock opened at $74.36 on Friday. The firm’s 50-day simple moving average is $87.34 and its 200 day simple moving average is $81.28. The company has a quick ratio of 1.18, a current ratio of 2.09 and a debt-to-equity ratio of 0.85. The stock has a market cap of $40.38 billion, a PE ratio of 354.11, a price-to-earnings-growth ratio of 0.78 and a beta of 1.76. Microchip Technology has a fifty-two week low of $48.52 and a fifty-two week high of $105.91.

Microchip Technology (NASDAQ:MCHPGet Free Report) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.76 EPS for the quarter, beating analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 10.87% and a net margin of 4.88%.The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same period last year, the company earned $0.27 earnings per share. The company’s quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. As a group, sell-side analysts predict that Microchip Technology will post 2.7 EPS for the current year.

Trending Headlines about Microchip Technology

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

  • Positive Sentiment: Microchip exceeded quarterly expectations, reporting adjusted EPS of $0.76 versus the $0.70 consensus and revenue of $1.48 billion versus $1.46 billion. Revenue increased 38% year over year, while EPS rose substantially from $0.27 in the prior-year period. Microchip Technology earnings report
  • Positive Sentiment: The company’s fiscal second-quarter outlook was well above Wall Street expectations. Microchip guided to EPS of $0.91–$0.95 versus a $0.76 consensus and revenue of approximately $1.6 billion versus estimates near $1.5 billion. Management cited strengthening demand for chips used in AI data centers, industrial equipment, automotive applications and aerospace. Reuters: Microchip forecasts upbeat quarterly revenue
  • Positive Sentiment: Analyst coverage highlighted potential operating leverage as sales recover. Microchip’s alliance with Micron, involving PCIe Gen 6 switches and SSD solutions, could improve its position in AI data-center infrastructure and increase competition with Broadcom and Astera Labs. Zacks: Microchip and Micron alliance
  • Neutral Sentiment: The earnings presentation and call emphasized the recovery trajectory, demand trends and margin potential, giving investors more detail on how quickly the improved revenue environment may translate into profits. Microchip Technology Q1 2027 earnings call transcript
  • Negative Sentiment: Despite the favorable results, investors may be taking profits or questioning how much of the recovery is already reflected in the share price. Microchip’s elevated valuation, including a reported P/E above 350, leaves limited room for execution disappointments. The key issue is whether operating leverage can justify the premium investors are paying. Seeking Alpha: Microchip operating leverage and valuation

Microchip Technology Company Profile

(Get Free Report)

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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Dividend History for Microchip Technology (NASDAQ:MCHP)

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