Microchip Technology

MCHP · Nasdaq · Information Technology · Financials, fiscal 2017 to 2026

MCHP · Last close · October 26, 2026

$75.90

Microchip Technology's revenue rose 7.1% to $4.7 billion in fiscal 2026. Its operating margin was 10.4%, up from 6.7% a year earlier. Free cash flow was $871 million, up 12.8%. It paid out $984 million in dividends and buybacks, 113% of free cash flow. The diluted share count rose 1.5%.

MICROCHIP TECHNOLOGY INCORPORATED Latest fiscal year ended March 31, 2026 10-K filed May 21, 2026 · 0000827054-26-000016 Updated October 9, 2026

Revenue

$4.7B

7.1%

Operating margin

10.4%

3.7 pts

Net income

$230M

Free cash flow

$871M

12.8%

Return on capital

3.5%

2.3 pts

Market cap

$41.8B

Oct 26 close

P/E

111.6x

On $0.68 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Share counts and per-share figures for earlier years are restated for a stock split (2-for-1), so every year is on today's share basis.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2017 to 2026, earnings per share fell 5.0% a year and net income grew 3.8% a year, as new shares raised the share count by 16% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Microchip Technology yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Microchip Technology's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Microchip Technology's fiscal 2026 free cash flow of $871M, net cash of −$5.3B at March 31, 2026 and 545 million diluted shares, from its filings. The scenarios are fitted to Microchip Technology: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -17.6% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 12%: 11% for a cyclical or higher-risk business (Semiconductors), plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2026.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at March 31, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Microchip Technology's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 13% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 12% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 11% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $75.90
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Microchip Technology's earnings per share of $0.68 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 43.2×, the middle of Microchip Technology's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 13%, 12% and 11%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: First Solar, Skyworks Solutions, ON Semiconductor.

Earnings growth in the years ahead (% a year) Starts at Microchip Technology's revenue growth over the last 3 years, -17.6% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $75.90
Value at this multiple, against the last close: —
Microchip Technology's P/E at the last close: 111.6×

Company	Last close	Earnings per share	P/E today
Microchip TechnologyMCHP	$75.90	$0.68	111.6×
ON SemiconductorON	$74.06	$1.55	47.8×
Skyworks SolutionsSWKS	$83.34	$1.93	43.2×
First SolarFSLR	$168.15	$16.22	10.4×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	319	234	320	772	240
Debt incl. finance leases	7,687	6,440	6,000	5,630	5,496
Net debt (negative means net cash)	7,368	6,206	5,680	4,859	5,256
Net debt to EBITDA	2.5x	1.5x	1.6x	4.6x	4.5x
Debt to equity	1.3x	1.0x	0.9x	0.8x	0.8x
Interest coverage	7.2x	15.3x	13.0x	1.1x	2.2x
Current ratio	1.8x	1.0x	1.2x	2.6x	2.1x
Quick ratio	1.1x	0.6x	0.7x	1.5x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Microchip Technology shares on the open market, and 6 insiders sold $71.1 million, $65.7 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 25, 2026	James Eric BjornholtSenior Corporate VP and CFO	Sold plan	4,112	$75.32	$309,716	Form 4
Aug 17, 2026	James Eric BjornholtSenior Corporate VP and CFO	Sold	837	$80.26	$67,178	Form 4
Jun 4, 2026	Richard J SimoncicChief Operating Officer	Sold	5,000	$97.52	$487,600	Form 4
May 28, 2026	Matthew W ChapmanDirector	Sold	3,000	$97.52	$292,560	Form 4
May 22, 2026	Richard J SimoncicChief Operating Officer	Sold	5,000	$93.44	$467,200	Form 4
May 22, 2026	James Eric BjornholtSenior VP and CFO	Sold plan	3,667	$90.86	$333,202	Form 4
May 15, 2026	Matthew W ChapmanDirector	Sold	10,000	$95.48	$954,800	Form 4
May 15, 2026	Richard J SimoncicChief Operating Officer	Sold	83	$93.85	$7,790	Form 4
May 13, 2026	Mathew B BunkerSenior VP, Operations	Sold	10,571	$96.88	$1.0 million	Form 4
May 13, 2026	Richard J SimoncicChief Operating Officer	Sold	10,000	$97.55	$975,500	Form 4
May 1, 2026	Steve SanghiPresident, CEO and Chair of Bd, Director	Sold plan	76,469	$93.58	$7.2 million	Form 4
Apr 30, 2026	Steve SanghiPresident, CEO and Chair of Bd, Director	Sold plan	33,502	$92.37	$3.1 million	Form 4

The latest 12 of 20 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Fail	Fail	Pass
Revenue rose relative to assets	Fail	Fail	Pass
F-score	6 of 9	5 of 9	6 of 9
Accruals ratio	−6.1%	−5.8%	−4.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Microchip Technology side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Microchip Technology	FY26	7.1%	10.4%	18.5%	3.5%	4.5x	6
Arm Holdings	FY26	22.8%	18.3%	19.9%	—	—	—	Compare
First Solar	FY25	24.1%	30.6%	22.8%	22.7%	−1.2x	7	Compare
Skyworks Solutions	FY25	−2.2%	12.2%	27.1%	8.5%	−0.9x	5	Compare
ON Semiconductor	FY25	−15.3%	1.4%	23.7%	0.9%	0.6x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	3,408	3,981	5,350	5,274	5,438	6,821	8,439	7,634	4,402	4,713
Revenue growth	56.8%	16.8%	34.4%	−1.4%	3.1%	25.4%	23.7%	−9.5%	−42.4%	7.1%
Gross profit	1,757	2,421	2,931	3,242	3,379	4,450	5,698	4,996	2,468	2,721
Research and development	545	529	826	878	836	989	1,118	1,097	984	1,086
Operating income	276	936	714	647	998	1,850	3,116	2,571	296	490
Net income	165	255	356	571	349	1,286	2,238	1,907	−0	230
Diluted EPS (US$)	0.35	0.52	0.71	1.11	0.65	2.27	4.02	3.48	−0.01	0.22
Diluted shares (millions)	470	498	500	512	541	566	557	548	537	545
Cash flow
Cash from operations	1,060	1,420	1,675	1,544	1,916	2,843	3,621	2,893	898	962
Capital expenditure	10	207	229	68	93	370	486	285	126	91
Free cash flow	1,049	1,213	1,446	1,476	1,824	2,473	3,135	2,608	772	871
Dividends paid	315	338	344	350	388	504	695	912	976	984
Share buybacks	0	0	0	0	0	426	946	982	96	0
Acquisitions	0	0	7,851	0	0	0	0	0	0	0
Stock-based compensation	128	93	166	170	198	210	170	178	180	255
Balance sheet at fiscal year end
Cash and short-term investments	1,303	2,197	431	403	282	319	234	320	772	240
Debt incl. finance leases	2,950	3,068	10,307	9,482	8,904	7,687	6,440	6,000	5,630	5,496
Total assets	7,687	8,257	18,350	17,426	16,479	16,200	16,370	15,873	15,375	14,370
Total liabilities	4,416	4,977	13,062	11,841	11,142	10,305	9,857	9,215	8,296	7,938
Shareholders' equity	3,271	3,280	5,288	5,586	5,337	5,895	6,514	6,658	7,078	6,432
Margins and ratios
Gross margin	51.6%	60.8%	54.8%	61.5%	62.1%	65.2%	67.5%	65.4%	56.1%	57.7%
Operating margin	8.1%	23.5%	13.3%	12.3%	18.4%	27.1%	36.9%	33.7%	6.7%	10.4%
Net margin	4.8%	6.4%	6.7%	10.8%	6.4%	18.9%	26.5%	25.0%	−0.0%	4.9%
Free cash flow margin	30.8%	30.5%	27.0%	28.0%	33.5%	36.2%	37.1%	34.2%	17.5%	18.5%
Return on capital	7.8%	10.3%	7.4%	4.3%	7.0%	11.8%	18.4%	16.5%	1.2%	3.5%
Return on equity	10.1%	7.8%	8.3%	10.5%	6.4%	22.9%	36.1%	29.0%	−0.0%	3.4%
Return on assets	2.5%	3.2%	2.7%	3.2%	2.1%	7.9%	13.7%	11.8%	−0.0%	1.6%
Net debt to EBITDA	2.2x	0.6x	6.2x	4.9x	4.0x	2.5x	1.5x	1.6x	4.6x	4.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Microchip Technology's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Microchip Technology.