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MCHP

Microchip Technology Incorporated

MCHP

Microchip Technology Incorporated • NASDAQ
$53.58 ▲ 1.92% (+1.01)
Market Cap $28.87 B
52w High $77.20
52w Low $34.13
Dividend Yield 1.82%
P/E -116.48
Volume 3.04M
Outstanding Shares 538.74M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $1.14B ▲ $375M ▼ $41.7M ▲ 3.657% ▲ $0 ▲ $260.8M ▲
Q1-2026 $1.075B ▲ $544.6M ▼ $-18.6M ▲ -1.729% ▲ $-0.086 ▲ $211.3M ▲
Q4-2025 $970.5M ▼ $601.4M ▲ $-154.6M ▼ -15.93% ▼ $-0.29 ▼ $86.6M ▼
Q3-2025 $1.026B ▼ $530.5M ▲ $-53.6M ▼ -5.224% ▼ $-0.1 ▼ $207.6M ▼
Q2-2025 $1.164B $521.9M $78.4M 6.737% $0.15 $335.9M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $236.8M ▼ $14.47B ▼ $7.774B ▼ $6.696B ▼
Q1-2026 $566.5M ▼ $14.979B ▼ $8.122B ▼ $6.857B ▼
Q4-2025 $771.7M ▲ $15.375B ▼ $8.296B ▼ $7.078B ▲
Q3-2025 $586M ▲ $15.632B ▲ $9.601B ▲ $6.032B ▼
Q2-2025 $286.1M $15.622B $9.346B $6.276B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $41.7M ▲ $88.1M ▼ $-62M ▼ $-355.8M ▲ $-329.7M ▼ $51.6M ▼
Q1-2026 $-18.6M ▲ $275.6M ▲ $-36.9M ▲ $-443.9M ▼ $-205.2M ▼ $257.7M ▲
Q4-2025 $-154.6M ▼ $205.9M ▼ $-56M ▼ $35.8M ▼ $185.7M ▼ $191.7M ▼
Q3-2025 $-53.6M ▼ $271.5M ▲ $-42.1M ▲ $70.5M ▲ $299.9M ▲ $253.4M ▲
Q2-2025 $78.4M $43.6M $-64.2M $-8.4M $-29M $22.8M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Semiconductor Products Member
Semiconductor Products Member
 $990.00M ▲$930.00M ▼$1.04Bn ▲$1.11Bn ▲
Technology Licensing Member
Technology Licensing Member
 $30.00M ▲$40.00M ▲$30.00M ▼$30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Microchip’s income statement tells a story of a strong upswing followed by a noticeable cooling. Revenue and profits climbed steadily for several years, peaking recently as demand for semiconductors and embedded solutions was very strong. Since then, both sales and margins have come down meaningfully, with the latest period showing much slimmer operating profit and almost no net profit. This pattern is typical of a cyclical business: earnings look very healthy in good years and can compress quickly when customers slow their orders. The key watch-point is how quickly profitability stabilizes and whether the recent downturn is temporary or more prolonged.

Balance Sheet

Balance Sheet The balance sheet looks generally solid and has been quietly improving. Total assets have been fairly steady, suggesting the company is building on an established manufacturing and technology base rather than expanding aggressively at any cost. Debt has been brought down over time, while shareholder equity has grown, which points to gradual deleveraging and internal value build-up. Cash balances are not large but have ticked up in the most recent period, giving a bit more cushion. Overall, Microchip appears to be shifting toward a more conservative, less debt-heavy capital structure, which can help weather industry cycles.

Cash Flow

Cash Flow Cash generation has been one of Microchip’s strengths. Operating cash flow grew strongly through the upcycle and comfortably covered investment spending, leaving solid free cash flow in multiple years. As earnings have softened, cash flow has also stepped down, but it remains positive after capital expenditures. Investment in equipment and facilities has risen from very low levels to more normal, but still manageable, levels, which supports future capacity and technology without overstretching the balance sheet. The big question is how quickly cash flow rebounds once demand normalizes, since this is what ultimately funds debt reduction, shareholder returns, and ongoing R&D.

Competitive Edge

Competitive Edge Microchip holds a strong, defensible position in embedded semiconductors, especially in microcontrollers and complementary analog and connectivity products. Its “total system solution” strategy—offering chips, software tools, and support as a package—reduces complexity for customers and makes it harder to switch to rivals. The MPLAB development ecosystem and long-standing support relationships create a sticky environment where engineers tend to stay once they are trained and comfortable. A wide and diversified customer base across industrial, automotive, and other markets helps smooth out weakness in any single segment. Competition in semiconductors is always intense, but Microchip’s breadth, reputation for reliability, and customer lock-in provide a meaningful moat.

Innovation and R&D

Innovation and R&D Innovation at Microchip is centered on making embedded systems smarter, more connected, and more power-efficient. The company invests in a broad microcontroller portfolio, tightly integrated analog and mixed-signal parts, and a growing range of connectivity solutions suited for the Internet of Things. It is also pushing into newer growth vectors like AI and machine learning at the edge, advanced automotive electronics for electric and more networked vehicles, and high-speed connectivity for data centers. A consistent theme is low power, reliability, and complete solutions rather than just standalone chips. The main risk is execution: keeping pace with fast-moving technologies and competitors while balancing spending through economic cycles.

Summary

Microchip combines a solid competitive franchise with the realities of a cyclical, capital-intensive industry. Over the past several years it has shown that, in good demand environments, it can generate strong margins and healthy free cash flow, while gradually strengthening its balance sheet and reducing reliance on debt. More recently, revenue and profitability have cooled significantly, underlining the sensitivity of its results to swings in end-market demand. At the same time, its sticky ecosystem, broad product portfolio, and focus on key long-term trends—such as IoT, automotive electronics, and edge intelligence—provide multiple avenues for future growth. The central issues to monitor are how the current downturn plays out, how effectively the company continues to innovate, and whether it can sustain strong cash generation across the full cycle, not just at the peaks.

NEWS

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