Microchip Technology (NASDAQ:MCHP) Releases Q2 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) updated its second quarter 2025 earnings guidance on Thursday. The company provided EPS guidance of 0.400-0.460 for the period, compared to the consensus EPS estimate of 0.590. The company issued revenue guidance of $1.1 billion-$1.2 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q2 guidance to $0.40-0.46 EPS.

Microchip Technology Price Performance

Microchip Technology stock traded down $8.94 during trading hours on Friday, hitting $75.43. The stock had a trading volume of 17,482,866 shares, compared to its average volume of 6,510,382. Microchip Technology has a 1-year low of $68.75 and a 1-year high of $100.57. The stock has a market capitalization of $40.47 billion, a price-to-earnings ratio of 21.74 and a beta of 1.54. The stock’s fifty day moving average is $91.66 and its two-hundred day moving average is $89.42. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.20 and a quick ratio of 0.67.

Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Thursday, August 1st. The semiconductor company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.01. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. Microchip Technology had a net margin of 20.80% and a return on equity of 27.82%. The firm’s revenue was down 45.8% on a year-over-year basis. During the same period in the prior year, the company earned $1.56 EPS. As a group, analysts predict that Microchip Technology will post 2.35 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be paid a $0.454 dividend. The ex-dividend date is Thursday, August 22nd. This represents a $1.82 dividend on an annualized basis and a yield of 2.41%. This is a positive change from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s dividend payout ratio is presently 52.16%.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Stifel Nicolaus increased their price objective on Microchip Technology from $98.00 to $102.00 and gave the company a buy rating in a research note on Wednesday, May 1st. Morgan Stanley lowered shares of Microchip Technology from an overweight rating to an equal weight rating and cut their price objective for the company from $102.00 to $100.00 in a research report on Thursday, July 11th. The Goldman Sachs Group raised their target price on shares of Microchip Technology from $77.00 to $88.00 and gave the stock a neutral rating in a research report on Tuesday, May 7th. Citigroup reduced their price target on Microchip Technology from $104.00 to $92.00 and set a buy rating on the stock in a research note on Friday. Finally, TD Cowen dropped their target price on Microchip Technology from $90.00 to $80.00 and set a hold rating for the company in a research note on Friday. Seven investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Microchip Technology has a consensus rating of Moderate Buy and an average target price of $99.15.

Insider Activity at Microchip Technology

In other news, VP Stephen V. Drehobl sold 10,000 shares of the company’s stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total value of $908,800.00. Following the completion of the transaction, the vice president now directly owns 82,203 shares in the company, valued at $7,470,608.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other Microchip Technology news, VP Stephen V. Drehobl sold 7,830 shares of Microchip Technology stock in a transaction that occurred on Thursday, May 16th. The stock was sold at an average price of $95.06, for a total transaction of $744,319.80. Following the sale, the vice president now directly owns 79,509 shares in the company, valued at approximately $7,558,125.54. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Stephen V. Drehobl sold 10,000 shares of the stock in a transaction that occurred on Wednesday, May 8th. The shares were sold at an average price of $90.88, for a total value of $908,800.00. Following the transaction, the vice president now owns 82,203 shares of the company’s stock, valued at $7,470,608.64. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 23,993 shares of company stock worth $2,251,857. 2.07% of the stock is currently owned by company insiders.

Microchip Technology Company Profile

Microchip Technology Incorporated develops, manufactures, and sells 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 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.