Zacks Research Issues Negative Outlook for MCHP Earnings

Microchip Technology Incorporated (NASDAQ:MCHP) – Analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for shares of Microchip Technology in a research note issued to investors on Tuesday, February 4th. Zacks Research analyst R. Department now anticipates that the semiconductor company will earn $0.47 per share for the quarter, down from their prior estimate of $0.49. The consensus estimate for Microchip Technology’s current full-year earnings is $1.31 per share. Zacks Research also issued estimates for Microchip Technology’s Q4 2026 earnings at $0.50 EPS, FY2026 earnings at $1.71 EPS, Q1 2027 earnings at $0.61 EPS, Q3 2027 earnings at $0.72 EPS and FY2027 earnings at $2.88 EPS.

A number of other equities research analysts have also weighed in on MCHP. Mizuho lowered their target price on Microchip Technology from $85.00 to $72.00 and set an “outperform” rating for the company in a research note on Friday, January 10th. Stifel Nicolaus cut their target price on shares of Microchip Technology from $90.00 to $87.00 and set a “buy” rating on the stock in a report on Tuesday, December 3rd. TD Cowen lowered their price target on shares of Microchip Technology from $80.00 to $70.00 and set a “hold” rating for the company in a report on Wednesday, November 6th. Rosenblatt Securities reissued a “buy” rating and issued a $90.00 price target on shares of Microchip Technology in a report on Thursday. Finally, Jefferies Financial Group lowered their price objective on shares of Microchip Technology from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, November 6th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, Microchip Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $81.67.

Microchip Technology Stock Performance

Microchip Technology stock opened at $53.11 on Friday. The firm has a fifty day simple moving average of $58.34 and a two-hundred day simple moving average of $70.38. Microchip Technology has a twelve month low of $51.37 and a twelve month high of $100.57. The company has a market capitalization of $28.52 billion, a PE ratio of 37.14 and a beta of 1.50. The company has a quick ratio of 0.48, a current ratio of 0.88 and a debt-to-equity ratio of 0.71.

Microchip Technology (NASDAQ:MCHP) last posted its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a return on equity of 19.47% and a net margin of 14.22%.

Microchip Technology Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Investors of record on Monday, February 24th will be given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a yield of 3.43%. Microchip Technology’s dividend payout ratio (DPR) is presently 127.27%.

Institutional Investors Weigh In On Microchip Technology

Several hedge funds have recently added to or reduced their stakes in MCHP. Van ECK Associates Corp raised its position in shares of Microchip Technology by 39.3% in the 4th quarter. Van ECK Associates Corp now owns 11,093,007 shares of the semiconductor company’s stock worth $636,184,000 after purchasing an additional 3,131,807 shares during the last quarter. Franklin Resources Inc. grew its position in Microchip Technology by 30.2% during the 3rd quarter. Franklin Resources Inc. now owns 3,347,643 shares of the semiconductor company’s stock valued at $264,430,000 after purchasing an additional 776,408 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in Microchip Technology by 3.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,143,769 shares of the semiconductor company’s stock valued at $180,295,000 after purchasing an additional 116,823 shares in the last quarter. Assenagon Asset Management S.A. raised its holdings in Microchip Technology by 9,901.6% in the fourth quarter. Assenagon Asset Management S.A. now owns 2,857,654 shares of the semiconductor company’s stock worth $163,886,000 after buying an additional 2,829,082 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its holdings in shares of Microchip Technology by 20.1% during the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,751,987 shares of the semiconductor company’s stock valued at $220,957,000 after buying an additional 460,697 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.