Microchip Technology

Microchip Technology Incorporated (Microchip) is a broadline supplier of semiconductors, based in Chandler, Arizona. It sells microcontrollers, microprocessors and related chips. It serves data center, aerospace and defense, industrial, robotics, automotive and intelligent edge markets. In September 2026, it bought Hailo, a maker of edge AI processors, and in October 2026 it bought Vorago Technologies, a maker of radiation-hardened chips.

Its fiscal year ends on March 31, so Q2 fiscal 2027 ended on September 30, 2026. Steve Sanghi is President and Chief Executive Officer. The common shares trade on Nasdaq in US dollars. Its depositary shares of mandatory convertible preferred stock also trade on Nasdaq.

The price of Microchip depends on whether the recovery from a weak year lasts and lifts earnings to a new high. Net sales rose 42.2% to $1,621.5 million in the quarter ended September 2026, and non-GAAP operating margin was 39.5%, against 24.3% a year earlier. Bookings are strong, with a book-to-bill ratio well above one. Debt is still high: principal was $5.55 billion at September 30, 2026.

For the price to hold or rise, four things must be true. Sales must keep growing from the Q3 fiscal 2027 guidance of $1,573 million to $1,638 million. Operating expenses must grow more slowly than sales. The company must get enough wafer supply as lead times get longer.

Design wins in data center, which grew to 24 for PCIe Gen6 switches and retimers, must become revenue. The next tests are the Q3 fiscal 2027 report in early February 2027 and the Q4 fiscal 2027 guidance.

1. Feb 4, 2027 · est.Pending

   Q3 fiscal 2027 results: sales and marginNet sales land in the range of $1.573 billion to $1.638 billion with non-GAAP gross margin of 64% to 65%, and this passes; sales below the range fails.
2. May 2027 · est.Pending

   Q4 fiscal 2027 results and debtSales keep growing and debt falls from $5.55 billion, and this passes; a fall in orders or new debt for buybacks fails.

Every passed and failed checkpoint across all picks

• November 5, 2026Microchip reported Q2 fiscal 2027 results. Net sales were $1.622 billion, up 42.2% from a year earlier and 9.2% from the prior quarter. GAAP net income for common stockholders was $373.6 million, or $0.68 per diluted share. Non-GAAP EPS was $0.97, and non-GAAP operating income was $639.9 million.
• November 5, 2026Microchip guided Q3 fiscal 2027 net sales to $1.573 billion to $1.638 billion, and non-GAAP EPS to $0.87 to $0.95. It said that $53 million of infrequent revenue items in the September quarter do not repeat. It declared a quarterly dividend of $0.455 per common share, payable on December 8, 2026.
• November 5, 2026Microchip said that Victor Peng told the board on November 3, 2026, that he will step down from the board because of other work.

Last earnings

November 5, 2026 (8-K on sec.gov)

Next earnings

Expected about February 4, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 5, 2026 · mchp-20260930
• 8-KEarnings releaseFiled November 5, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Shareholder vote resultsFiled August 19, 2026 · mchp-20260818
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 6, 2026 · mchp-20260630
• 8-KEarnings releaseFiled August 6, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled July 24, 2026 · mchp-20260723
• 8-KChange of directors or officersFiled June 1, 2026 · mchp-20260528
• 10-KAnnual report for the period ended Mar 31, 2026Filed May 21, 2026 · mchp-20260331
• 8-KEarnings releaseFiled May 7, 2026 · Press release and exhibits
• 8-KNew material agreement and New debt or financial obligationFiled February 11, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 827054)

• Demand for chips swings widely. Net sales were $1,140.4 million a year earlier and rose 42.2% in a year. A new fall in industrial and automotive orders would cut sales and margins fast.
• Debt is high. Principal was $5,551.9 million at September 30, 2026, and cash was $457.0 million. The 2017 convertible notes of $37.9 million mature on February 15, 2027, and the company plans to refinance with new debt.
• The preferred stock will add shares. The 7.50% mandatory convertible preferred stock converts on March 15, 2028, into 16.0060 to 19.6080 common shares per preferred share. This is 23.8 million to 29.1 million shares for 1,485,000 preferred shares.
• Supply is tight. Lead times are getting longer, and the company works to add capacity and wafer supply. A shortage can limit sales.
• New acquisitions can cost more than planned. Hailo and Vorago add new products, but they must be joined to the business, and Microchip says that it may not get the gains it expects.

At September 30, 2026, Microchip had cash of $457.0 million. Gross debt was $5,551.9 million: $364.0 million of commercial paper, $3,000.0 million of senior notes due 2028, 2029 and 2030, and $2,187.9 million of convertible debt. Read more

Yield at the current rate

2.9% (current annual rate, at today’s price)

Dividend yield

2.9% (last 12 months, at today’s price of $62.13)

Paid per share

$1.82 in the last 12 months (4 payments)

Current annual rate

$1.82 ($0.455 × 4 a year)

Payout ratio

827% of the last fiscal year’s earnings (the year that ended March 31, 2026)

Latest ex-dividend date

August 24, 2026, $0.455 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 19.9% a year. From 2015 to 2025, the dividend grew by about 9.8% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.