A Business at a Glance
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MICROCHIP TECHNOLOGY INC
MCHP
$42.6B
Mkt Cap
$78.86
-3.06%
MICROCHIP TECHNOLOGY INC (MCHP) has a 5-year average return on invested capital (ROIC) of 10.7%. This indicates solid capital allocation.
MICROCHIP TECHNOLOGY INC (MCHP) has a market capitalization of $42.6B. It is classified as a large-cap stock.
Yes, MICROCHIP TECHNOLOGY INC (MCHP) pays a dividend with a trailing twelve-month yield of 2.31%.
MICROCHIP TECHNOLOGY INC (MCHP) operates in the Semiconductors & Related Devices industry, within the Technology sector.
MICROCHIP TECHNOLOGY INC (MCHP) reported annual revenue of $4.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
MICROCHIP TECHNOLOGY INC (MCHP) has a net profit margin of 2.5%. This is a modest margin.
MICROCHIP TECHNOLOGY INC (MCHP) generated $871 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Microchip Technology develops, manufactures, and sells embedded control solutions comprising mixed-signal microcontrollers (8-bit, 16-bit, 32-bit, and 64-bit architectures), microprocessors, analog products, FPGAs, and memory devices that enable customers to differentiate products, reduce costs, and manage risks across automotive, aerospace and defense, communications, consumer appliances, data centers, computing, and industrial end markets. The company's Total System Solution (TSS) combines hardware, software, and services to provide a large portion of silicon requirements for customer applications, with a business model centered on embedded control systems that replace electromechanical devices, reduce component counts, add functionality, and enhance security and energy efficiency. Microchip owns and operates substantial manufacturing resources including wafer fabrication facilities (Fab 4 in Oregon and Fab 5 in Colorado Springs) and assembly and test operations, capturing manufacturing and assembly margins while outsourcing a significant portion of wafer production to third-party foundries to diversify supply chain risk; in fiscal 2025, approximately 36% of sales came from internally fabricated products and 64% from outside foundries. The company's competitive moat derives from over 35 years of technology leadership, a broad proprietary product portfolio with significant analog and mixed-signal integration, comprehensive low-cost development tools that facilitate design wins and customer lock-in, and manufacturing control that enables cost leadership and high production yields. Distribution occurs through direct sales to OEMs and through channel partners, with the company serving thousands of applications globally including automotive access control, data center solutions, industrial automation, IoT devices, and aerospace systems.
【Recovery and margin expansion】 Management expects strong sequential growth in the June 2026 quarter driven by data center, aerospace and defense, industrial, and automotive end markets, with bookings significantly higher than prior quarters and backlog building across nearly all business units. Gross margins are expected to continue improving toward the long-term 65% target as inventory write-off and underutilization charges decline with factory ramp-up and revenue growth, with management noting that underutilization charges of $46.6 million in the March quarter represent the primary gap to the 65% target. The company is prioritizing debt reduction as free cash flow exceeds dividend payments, with net debt to adjusted EBITDA expected to drop below three, while maintaining disciplined capital expenditure at approximately $100 million for fiscal 2027 focused on maintenance rather than major expansion. Lead times are broadly expanding across the product portfolio, and management expects distribution restocking to occur in the near term as customers rebuild inventory levels to support anticipated growth in data center, connectivity, and other high-margin segments.
| Metric | Target | Period |
|---|---|---|
| Non-GAAP gross margin | Between 62.25% and 63.25% of sales | June 2026 quarter |
| Non-GAAP operating expenses | Between 28.75% and 29.25% of sales | June 2026 quarter |
| Non-GAAP operating profit | Between 33% and 34.5% of sales | June 2026 quarter |
| Non-GAAP diluted earnings per share | Between $0.67 and $0.71 per share | June 2026 quarter |
| Capital expenditures | Approximately $100 million | Fiscal year 2027 |
| Non-GAAP tax rate | About 10% | Fiscal year 2027 |
Non-GAAP gross margin (June 2026 quarter): “We expect our non-GAAP gross margin to be between 62.25% and 63.25% of sales”
Non-GAAP operating expenses (June 2026 quarter): “We expect our non-GAAP operating expenses to be between 28.75% and 29.25% of sales”
Non-GAAP operating profit (June 2026 quarter): “We expect our non-GAAP operating profit to be between 33% and 34.5% of sales”
Non-GAAP diluted earnings per share (June 2026 quarter): “we expect our non-GAAP diluted earnings per share to be between $0.67 and $0.71 per share”
Capital expenditures (Fiscal year 2027): “Our expectation for capital expenditures for fiscal year 2027 is to be approximately $100 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 4.7B | 4.7B | 4.4B | 7.6B | 8.4B | 6.8B |
| Net Income | 119M | 119M | -2.7M | 1.9B | 2.2B | 1.3B |
| EPS | $0.22 | $0.22 | $-0.01 | $3.48 | $4.02 | $2.27 |
| Free Cash Flow | 871M | 871M | 772M | 2.6B | 3.1B | 2.5B |
| ROIC | 3.1% | 3.5% | 1.5% | 17.5% | 18.4% | 12.4% |
| Gross Margin | 57.7% | 57.7% | 56.1% | 65.4% | 67.5% | 65.2% |
| Debt/Equity | 0.85 | 0.85 | 0.80 | 0.90 | 0.99 | 1.30 |
| Dividends/Share | $1.82 | $1.82 | $3.61 | $1.68 | $1.26 | $0.91 |
| Operating Income | 490M | 490M | 296M | 2.6B | 3.1B | 1.8B |
| Operating Margin | 10.4% | 10.4% | 6.7% | 33.7% | 36.9% | 27.1% |
| ROE | 1.8% | 1.8% | -0.0% | 29.0% | 36.1% | 22.9% |
| Shares Outstanding | 540M | 540M | 270M | 548M | 557M | 566M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.1B | 2.2B | 3.4B | 4.0B | 5.3B | 5.3B | 5.4B | 6.8B | 8.4B | 7.6B | 4.4B | 4.7B | 4.7B |
| Gross Margin | 57.3% | 55.5% | 51.6% | 60.8% | 54.8% | 61.5% | 62.1% | 65.2% | 67.5% | 65.4% | 56.1% | 57.7% | 57.7% |
| R&D | 350M | 373M | 545M | 529M | 826M | 878M | 836M | 989M | 1.1B | 1.1B | 984M | 1.1B | 1.1B |
| SG&A | 275M | 302M | 500M | 452M | 683M | 677M | 610M | 719M | 798M | 734M | 618M | 674M | 674M |
| EBIT | 426M | 352M | 276M | 936M | 714M | 647M | 998M | 1.8B | 3.1B | 2.6B | 296M | 490M | 490M |
| Op. Margin | 19.8% | 16.2% | 8.1% | 23.5% | 13.4% | 12.3% | 18.4% | 27.1% | 36.9% | 33.7% | 6.7% | 10.4% | 10.4% |
| Net Income | 369M | 324M | 165M | 255M | 356M | 571M | 349M | 1.3B | 2.2B | 1.9B | -2.7M | 119M | 119M |
| Net Margin | 17.2% | 14.9% | 4.8% | 6.4% | 6.7% | 10.8% | 6.4% | 18.8% | 26.5% | 25.0% | -0.1% | 2.5% | 2.5% |
| Non-Recurring | 2.0M | 10M | 93M | 22M | -800K | 21M | 22M | 21M | 19M | 6.2M | 77M | 38M | 38M |
| Returns on Capital | |||||||||||||
| ROIC | 170.1% | N/M | 10.5% | 11.9% | 7.4% | 4.5% | 7.1% | 12.4% | 18.4% | 17.5% | 1.5% | 3.5% | 3.1% |
| ROE | 34.4% | N/A | 10.1% | 7.8% | 8.3% | 10.5% | 6.4% | 22.9% | 36.1% | 29.0% | -0.0% | 1.8% | 1.8% |
| ROA | 8.3% | 6.3% | 2.5% | 3.2% | 2.7% | 3.2% | 2.1% | 7.9% | 13.7% | 11.8% | -0.0% | 0.8% | 0.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 721M | 744M | 1.1B | 1.4B | 1.7B | 1.5B | 1.9B | 2.8B | 3.6B | 2.9B | 898M | 962M | 962M |
| Free Cash Flow | 715M | 737M | 1.0B | 1.2B | 1.4B | 1.5B | 1.8B | 2.5B | 3.1B | 2.6B | 772M | 871M | 871M |
| Owner Earnings | 384M | 390M | 462M | 711M | 632M | 158M | 565M | 1.5B | 2.5B | 1.8B | -32M | 17M | 17M |
| CapEx | 6.7M | 7.1M | 10M | 207M | 229M | 68M | 93M | 370M | 486M | 285M | 126M | 91M | 91M |
| Maint. CapEx | 278M | 283M | 469M | 616M | 876M | 1.2B | 1.2B | 1.1B | 998M | 880M | 750M | 689M | 689M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 278M | 283M | 469M | 616M | 876M | 1.2B | 1.2B | 1.1B | 998M | 880M | 750M | 689M | 689M |
| CapEx/OCF | 0.9% | 0.9% | 1.0% | 0.5% | 13.7% | 4.4% | 4.8% | 13.0% | 13.4% | 9.9% | 14.0% | N/A | 9.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 286M | 291M | 315M | 338M | 344M | 350M | 388M | 504M | 695M | 912M | 976M | 984M | 984M |
| Dividend Yield | 3.5% | 3.6% | 2.7% | 1.9% | 1.9% | 0.8% | 0.7% | 1.3% | 1.9% | 2.2% | 5.0% | N/A | 2.3% |
| Share Buybacks | 0 | 364M | 0 | 0 | 0 | 0 | 0 | 426M | 946M | 982M | 97M | 0 | 0 |
| Buyback Yield | N/A | 4.2% | N/A | N/A | N/A | N/A | N/A | 1.1% | 2.4% | 2.1% | 0.8% | 0.0% | 0.0% |
| Stock-Based Comp | 59M | 71M | 128M | 93M | 166M | 170M | 198M | 210M | 170M | 178M | 180M | 255M | 255M |
| Debt Repayment | 350M | 0 | 0 | 73M | 2.1B | 0 | 615M | 0 | 0 | 133M | 672M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -1.5B | 7.4M | 1.6B | 872M | 9.9B | 9.1B | 8.6B | 7.4B | 6.2B | 5.7B | 4.9B | 5.3B | 5.3B |
| Cash & Equiv. | 608M | 2.1B | 909M | 901M | 429M | 401M | 280M | 317M | 234M | 320M | 772M | 240M | 240M |
| Long-Term Debt | 462M | 2.5B | 2.9B | 1.8B | 8.9B | 8.9B | 7.6B | 7.7B | 5.0B | 5.0B | 5.6B | 5.5B | 5.5B |
| Debt/Equity | 41.71 | -730.83 | 0.90 | 0.94 | 1.95 | 1.70 | 1.67 | 1.30 | 0.99 | 0.90 | 0.80 | 0.85 | 0.85 |
| Interest Coverage | 6.9 | 3.4 | 1.9 | 4.7 | 1.4 | 1.3 | 2.8 | 7.2 | 15.3 | 13.0 | 1.1 | 2.2 | 2.2 |
| Equity | 11M | -3.4M | 3.3B | 3.3B | 5.3B | 5.6B | 5.3B | 5.9B | 6.5B | 6.7B | 7.1B | 6.4B | 6.4B |
| Total Assets | 4.8B | 5.5B | 7.7B | 8.3B | 18.4B | 17.4B | 16.5B | 16.2B | 16.4B | 15.9B | 15.4B | 14.4B | 14.4B |
| Total Liabilities | 4.8B | 5.5B | 4.4B | 5.0B | 13.1B | 11.8B | 11.1B | 10.3B | 9.9B | 9.2B | 8.3B | 7.9B | 7.9B |
| Intangibles | 504M | 606M | 2.1B | 1.7B | 6.7B | 5.7B | 4.8B | 4.0B | 3.4B | 2.8B | 2.4B | 2.0B | 2.0B |
| Retained Earnings | 1.5B | 1.6B | 1.5B | 1.4B | 3.2B | 3.4B | 3.4B | 4.2B | 5.8B | 6.8B | 5.8B | 4.9B | 4.9B |
| Working Capital | 2.3B | 2.7B | 1.6B | 1.3B | -160M | 580M | -264M | 1.1B | -49M | 494M | 1.8B | 1.2B | 1.2B |
| Current Assets | 2.7B | 3.1B | 2.3B | 3.4B | 2.2B | 2.2B | 2.1B | 2.5B | 3.1B | 3.0B | 3.0B | 2.4B | 2.4B |
| Current Liabilities | 354M | 382M | 705M | 2.0B | 2.4B | 1.6B | 2.4B | 1.4B | 3.1B | 2.5B | 1.2B | 1.1B | 1.1B |
| Per Share Data | |||||||||||||
| EPS | 0.83 | 0.75 | 0.36 | 0.52 | 0.71 | 0.56 | 0.33 | 2.27 | 4.02 | 3.48 | -0.01 | 0.22 | 0.22 |
| Owner EPS | 0.86 | 0.90 | 1.00 | 1.43 | 1.26 | 0.15 | 0.53 | 2.63 | 4.41 | 3.35 | -0.12 | 0.03 | 0.03 |
| Book Value | 0.02 | -0.01 | 7.05 | 6.61 | 10.55 | 5.43 | 4.96 | 10.41 | 11.70 | 12.15 | 26.22 | 11.91 | 11.91 |
| Cash Flow/Share | 1.61 | 1.71 | 2.29 | 2.86 | 3.34 | 1.50 | 1.78 | 5.02 | 6.51 | 5.28 | 3.33 | 1.78 | 1.50 |
| Dividends/Share | 0.71 | 0.72 | 0.72 | 0.72 | 0.73 | 0.37 | 0.37 | 0.91 | 1.26 | 1.68 | 3.61 | 1.82 | 1.82 |
| Shares Out. | 447.3M | 435.0M | 463.7M | 495.9M | 501.3M | 1.0B | 1.1B | 566.3M | 556.6M | 548.0M | 270.0M | 540.0M | 540.0M |
| Valuation | |||||||||||||
| P/E Ratio | 23.9 | 26.6 | 87.6 | 76.2 | 50.0 | 27.2 | 107.7 | 31.1 | 18.0 | 24.4 | N/A | N/A | 358.5 |
| P/FCF | 12.3 | 11.7 | 13.7 | 16.0 | 12.3 | 21.1 | 41.3 | 16.2 | 12.8 | 17.9 | 16.5 | N/A | 48.9 |
| EV/EBIT | 19.9 | 24.5 | 58.4 | 23.1 | 40.7 | 39.0 | 47.7 | 25.6 | 15.3 | 20.6 | 56.9 | N/A | 97.6 |
| Price/Book | 4.3 | 4.0 | 4.4 | 5.9 | 3.4 | 2.8 | 7.1 | 6.8 | 6.2 | 7.0 | 1.8 | N/A | 6.6 |
| Price/Sales | 3.8 | 3.7 | 3.4 | 4.6 | 3.4 | 4.0 | 5.1 | 5.8 | 4.3 | 5.6 | 4.4 | N/A | 9.0 |
| FCF Yield | 8.1% | 8.5% | 7.3% | 6.2% | 8.1% | 9.5% | 4.8% | 6.2% | 7.8% | 5.6% | 6.0% | N/A | 2.0% |
| Market Cap | 8.8B | 8.6B | 14.4B | 19.5B | 17.8B | 15.5B | 37.6B | 40.0B | 40.2B | 46.6B | 12.8B | 0 | 42.6B |
| Avg. Price | 18.42 | 18.58 | 25.07 | 36.70 | 36.32 | 40.92 | 51.93 | 69.64 | 64.45 | 77.36 | 71.73 | 0.00 | 78.86 |
| Year-End Price | 19.69 | 19.83 | 31.09 | 39.23 | 35.53 | 30.33 | 70.04 | 70.66 | 72.26 | 84.99 | 47.29 | 0.00 | 78.86 |
MICROCHIP TECHNOLOGY INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
On a free-cash-flow basis, the stock trades at 52.0x vs a median of 16.2x. The company's 5-year average ROIC is 10.7% with a gross margin of 62.4%. Total shareholder yield (dividends) is 2.3%. At current prices, the estimated annualized return to fair value is -1.7%.
MICROCHIP TECHNOLOGY INC (MCHP) has a debt-to-equity ratio of 0.85. This indicates moderate leverage.
MICROCHIP TECHNOLOGY INC (MCHP) reported earnings per share (EPS) of $0.22 in its most recent fiscal year.
MICROCHIP TECHNOLOGY INC (MCHP) has a return on equity (ROE) of 1.8%. This indicates moderate shareholder returns.
MICROCHIP TECHNOLOGY INC (MCHP) has a 5-year average gross margin of 62.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for MICROCHIP TECHNOLOGY INC (MCHP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MICROCHIP TECHNOLOGY INC (MCHP) has a book value per share of $11.91, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects strong sequential growth in the June 2026 quarter driven by data center, aerospace and defense, industrial, and automotive end markets, with bookings significantly higher than prior quarters and backlog building across nearly all business units. Gross margins are expected to continue improving toward the long-term 65% target as inventory write-off and underutilization charges decline with factory ramp-up and revenue growth, with management noting that underutilization charges of $46.6 million in the March quarter represent the primary gap to the 65% target. The company is prioritizing debt reduction as free cash flow exceeds dividend payments, with net debt to adjusted EBITDA expected to drop below three, while maintaining disciplined capital expenditure at approximately $100 million for fiscal 2027 focused on maintenance rather than major expansion. Lead times are broadly expanding across the product portfolio, and management expects distribution restocking to occur in the near term as customers rebuild inventory levels to support anticipated growth in data center, connectivity, and other high-margin segments.
Based on recent SEC filings and earnings calls, MICROCHIP TECHNOLOGY INC (MCHP) has provided the following forward guidance: Non-GAAP gross margin: Between 62.25% and 63.25% of sales (June 2026 quarter); Non-GAAP operating expenses: Between 28.75% and 29.25% of sales (June 2026 quarter); Non-GAAP operating profit: Between 33% and 34.5% of sales (June 2026 quarter); Non-GAAP diluted earnings per share: Between $0.67 and $0.71 per share (June 2026 quarter); Capital expenditures: Approximately $100 million (Fiscal year 2027), plus 1 additional metric.
Non-GAAP tax rate (Fiscal year 2027): “Our non-GAAP tax rate for fiscal year 2027 is expected to be about 10%, which is exclusive of any tax audit settlements related to taxes accrued in prior fiscal years”