Zacks Research Brokers Lower Earnings Estimates for MCHP

Microchip Technology Incorporated (NASDAQ:MCHP) – Equities researchers at Zacks Research cut their Q2 2026 EPS estimates for shares of Microchip Technology in a research note issued to investors on Tuesday, February 4th. Zacks Research analyst R. Department now forecasts that the semiconductor company will post earnings of $0.47 per share for the quarter, down from their prior forecast 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.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, February 6th. The semiconductor company reported $0.13 earnings per share 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%.

Several other research analysts also recently weighed in on the stock. Needham & Company LLC lowered their price objective on shares of Microchip Technology from $85.00 to $60.00 and set a “buy” rating on the stock in a report on Friday. B. Riley restated a “buy” rating and set a $75.00 price objective (down previously from $85.00) on shares of Microchip Technology in a report on Friday. Citigroup lowered their target price on shares of Microchip Technology from $92.00 to $82.00 and set a “buy” rating for the company in a report on Wednesday, November 6th. Evercore ISI reiterated an “outperform” rating and issued a $95.00 target price (down previously from $101.00) on shares of Microchip Technology in a report on Wednesday, November 6th. Finally, Stifel Nicolaus lowered their target price on shares of Microchip Technology from $90.00 to $87.00 and set a “buy” rating for the company in a report on Tuesday, December 3rd. One analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $77.11.

Microchip Technology Stock Performance

MCHP opened at $51.89 on Friday. The company has a current ratio of 0.88, a quick ratio of 0.48 and a debt-to-equity ratio of 0.71. The company’s fifty day moving average price is $58.04 and its two-hundred day moving average price is $70.26. Microchip Technology has a 1-year low of $50.21 and a 1-year high of $100.57. The company has a market cap of $27.87 billion, a price-to-earnings ratio of 36.29 and a beta of 1.50.

Hedge Funds Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Mainstream Capital Management LLC bought a new position in Microchip Technology during the fourth quarter worth about $26,000. Prospera Private Wealth LLC bought a new position in Microchip Technology during the third quarter worth about $29,000. OFI Invest Asset Management bought a new position in Microchip Technology during the fourth quarter worth about $29,000. Financial Life Planners bought a new position in Microchip Technology during the fourth quarter worth about $32,000. Finally, Peterson Financial Group Inc. bought a new position in Microchip Technology during the third quarter worth about $34,000. Institutional investors own 91.51% of the company’s stock.

Microchip Technology Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Monday, February 24th will be given a dividend of $0.455 per share. The ex-dividend date is Monday, February 24th. This represents a $1.82 dividend on an annualized basis and a yield of 3.51%. Microchip Technology’s dividend payout ratio is presently 127.27%.

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.