Microchip Technology Inc

Microchip Technology makes the small chips that control everyday and industrial products. Its core product is the mixed-signal microcontroller. That is a self-contained computer on a single chip, with built-in analog features, that can help run a home appliance, an electric vehicle or a factory robot. Microchip also sells analog chips that manage power and real-world signals, and FPGAs (chips customers can reprogram after manufacturing). It also sells memory chips, plus storage controllers and high-speed switches for AI data centers. It calls this mix of hardware, software and services a “Total System Solution.”

Its customers are equipment makers in automotive, aerospace and defense, communications, consumer appliances, data centers and computing, and industrial markets. Many buy through distributors. Microchip earns money mainly by selling chips. Smaller sums come from licensing its SuperFlash memory technology and from engineering services. Microchip owns much of its own manufacturing, from wafer fabrication to assembly and test. It says this makes it one of the lowest-cost producers in its industry. Low-cost development tools help engineers design its chips into their products.

In the fiscal year ended March 31, 2026, revenue was $4.71 billion. That was up 7.1% from the year before but far below the $8.44 billion of fiscal 2023. Mixed-signal microcontrollers provided 50% of revenue and analog products 28.2%. An “other” group made up 21.8%, including FPGAs, memory and licensing.

• In Q1 FY2027 (ended Jun 30, 2026), revenue was $1.48B, up 38% from a year earlier, and net income was $229.8M.
• For fiscal 2026, revenue was $4.71B (+7.1% year over year; -2.8% a year from FY2021 to FY2026) with a 4.9% net margin.

• Over FY2022–FY2026: $2.45B in buybacks and $4.07B in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2017–FY2026) shows an increase; the true streak may be longer.
• Regular dividends per share grew +19.5% a year over 5 years (FY2021–FY2026).
• Dividends took 427.8% of earnings and 113% of free cash flow in the latest fiscal year.
• Shares outstanding changed -2.1% from Oct 28, 2021 to Jul 28, 2026.

Rank among 1514 US companies

Market value at each year end

Microchip Technology’s market value went from $13.86B at the end of 2016 to $41.33B on Nov 2, 2026, about 3.0 times as much; since the end of 2025 it is up 20%.

Form 4 filings from 2025-10-28 to 2026-10-28 (25 read): 0 open-market purchases and 2 sales ($377K), 1 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in MCHP

1. Heavy debt needs steady cash flow. As of June 30, 2026, Microchip had about $5.36 billion of debt against $272 million of cash and investments. Servicing it takes significant cash, and a credit rating cut could raise borrowing costs.
2. Convertible debt and preferred stock could dilute holders. Converting its convertible debt or Series A Preferred Stock into common shares, or paying preferred dividends in stock, would shrink existing holders' stake. Common shareholders also rank behind preferred holders for dividends.
3. Owned factories hurt when demand falls. Microchip owns much of its manufacturing. When demand drops, idle factories still carry fixed costs, squeezing profit. Low yields, meaning too few usable chips per wafer, also raise costs.
4. Wide swings in chip demand. Revenue fell from $8.44 billion in fiscal 2023 to $4.40 billion in fiscal 2025. Microchip also relies on orders received and shipped in the same quarter, which limits advance warning.
5. Reliance on distributors to reach customers. Microchip depends on distributors to serve many of its end customers. If key distributors cut orders or run into financial trouble, sales could fall.
6. Exposure to tariffs, export controls and conflict. Microchip is highly dependent on sales, suppliers and operations abroad. Tariffs, export controls, trade sanctions or Middle East instability could cut off critical materials, raise costs or block sales.

• Aug 19, 2026 Executive or board change; Shareholder vote results
• Aug 6, 2026 Quarterly results released
• Jul 24, 2026 Executive or board change
• Jun 1, 2026 Executive or board change
• May 7, 2026 Quarterly results released
• Feb 11, 2026 Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Other company announcement
• Feb 5, 2026 Quarterly results released
• Jan 5, 2026 Quarterly results released
• Nov 6, 2025 Quarterly results released

Microchip has raised its dividend for at least 9 straight fiscal years. Dividends per share grew from $0.747 in fiscal 2021 to $1.82 in fiscal 2026 (ended March 31, 2026), about 19.5% a year. The last raise, from $1.816, was tiny. The yield was 2.31% as of October 28, 2026. Coverage is thin. Fiscal 2026 dividends of $984 million were 113% of free cash flow (cash left after running and investing in the business) and over four times earnings. Share buybacks totaled $2.45 billion from fiscal 2022 to 2026, none of it in fiscal 2026.

The shares fell 55.9% in the 2008 financial crisis, 49% in the 2020 COVID crash and 35.7% in the 2022 bear market. They regained their peak about 22, 3 and 11 months after each low. Their deepest decline in more than 20 years, 63.8%, came within the three years to October 28, 2026. Single stocks carry more risk than diversified funds.