Microchip Technology (NASDAQ:MCHP) Announces Earnings Results, Beats Estimates By $0.03 EPS

Posted by Francis Steltz on Nov 5th, 2026

Microchip Technology (NASDAQ:MCHP – Get Free Report) issued its quarterly earnings data on Thursday. The semiconductor company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03, FiscalAI reports. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.61 billion. Microchip Technology had a net margin of 9.34% and a return on equity of 14.97%. Microchip Technology’s revenue for the quarter was up 42.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.35 earnings per share.

Here are the key takeaways from Microchip Technology’s conference call:

September-quarter sales rose 42.2% year over year to $1.622 billion, and non-GAAP EPS of $0.97 beat the guidance midpoint by $0.04. Results included about $53 million of one-time revenue that the company does not expect to recur in December.
Bookings remained strong, the book-to-bill ratio was well above one, and backlog entering December was higher than entering September. Management cited broad growth across industrial, aerospace and defense, automotive, and other markets, while warning that supply constraints are delaying some shipments.
December-quarter revenue guidance is flat to down 3% sequentially at the midpoint, with non-GAAP gross margin expected at 64%–65%, below September’s 66.5%. The company cited the absence of one-time revenue, constrained shipments of high-margin products, lower utilization, and rising supplier costs.
Data-center sales exceeded $250 million in September, and Microchip said its data-center business is on track for $1 billion in calendar 2026. It reported 24 Gen 6 PCIe switch and retimer design wins, with shipments expected to ramp as more designs enter production next year; management noted volumes could be affected if data-center investment slows.
Net debt declined despite funding the Hailo acquisition, and leverage was 2.36 times trailing adjusted EBITDA; management expects leverage to keep falling. The company plans to maintain its dividend for now and revisit capital returns as it moves into the next fiscal year.

Microchip Technology Stock Down 13.9%

Microchip Technology stock traded down $10.49 during midday trading on Thursday, reaching $64.85. The company’s stock had a trading volume of 43,901,145 shares, compared to its average volume of 11,534,264. The stock’s 50-day simple moving average is $75.19 and its 200-day simple moving average is $79.48. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.92 and a quick ratio of 1.11. Microchip Technology has a 52-week low of $48.52 and a 52-week high of $105.91. The stock has a market capitalization of $35.21 billion, a P/E ratio of 45.94, a PEG ratio of 0.52 and a beta of 1.84.

Key Stories Impacting Microchip Technology

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

Positive Sentiment: Fiscal Q2 EPS was $0.97, above the $0.94 consensus and up from $0.35 a year earlier. Revenue of $1.62 billion also edged past estimates of $1.61 billion and increased 42.2% year over year. Microchip Technology Q2 Earnings and Revenues Top Estimates
Neutral Sentiment: Coverage also highlighted the company’s quarterly metrics and earnings-call transcript, but the supplied summaries provide no additional metric details or management commentary that would clarify the share reaction. Key Metrics on Microchip Tech Q2 Earnings
Negative Sentiment: Despite the earnings and revenue beats, MCHP shares declined amid unusually heavy trading. The provided articles do not specify whether investors were reacting to guidance, detailed operating metrics, or another factor, so the reason for the selloff is unclear from these reports.

Insiders Place Their Bets

In other news, CFO James Bjornholt sold 4,112 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $75.32, for a total transaction of $309,715.84. Following the sale, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.79% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MCHP. Truist Financial cut their price target on Microchip Technology from $105.00 to $90.00 and set a “hold” rating on the stock in a report on Friday, August 7th. Citigroup decreased their price objective on Microchip Technology from $113.00 to $95.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Microchip Technology in a research report on Wednesday, September 9th. BMO Capital Markets initiated coverage on Microchip Technology in a research note on Friday, August 21st. They issued an “outperform” rating and a $95.00 target price on the stock. Finally, B. Riley Financial reduced their target price on shares of Microchip Technology from $108.00 to $98.00 and set a “buy” rating for the company in a report on Thursday, October 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $97.71.

Get Our Latest Stock Analysis on Microchip Technology

Microchip Technology Company Profile

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Microchip Technology Incorporated (NASDAQ:MCHP) develops and manufactures semiconductor products used in embedded control and connected electronic systems. Its portfolio includes microcontrollers, microprocessors, analog and power-management devices, memory products, timing and connectivity components, security solutions, and field-programmable gate arrays. The company also provides development tools, software, evaluation kits, and technical support to help customers design and produce electronic equipment.

Microchip’s products are used across a range of markets, including automotive, industrial, aerospace and defense, communications, consumer electronics, data centers, and medical applications.