Monolithic Power Systems, Inc. (MPWR) Earnings

Monolithic Power Systems, Inc.

MPWR · Nasdaq

Symbol: MPWR
Type: Stock
Sector: Technology
Industry: Semiconductors & Related Devices
Exchange: Nasdaq

Monolithic Power Systems, Inc. ('MPS') is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPSs mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Key Issues

Bullish view

Second-quarter revenue reaches a record $981 million, rising 48% year over year, and management says growth across end markets is led by enterprise data. That performance supports the view that data-center demand is broadening the company’s growth base.

Bearish view

The evidence establishes one exceptionally strong quarter but does not show how long the acceleration lasts or whether enterprise-data demand remains the leading contributor. Investors therefore still lack a demonstrated multi-quarter record of durability.

Analyst Consensus

See all

Buy

12 analysts

$1,147

Current

—

Low

$1,810

Average

—

High

Average target implies +57.80% versus the current price.

Earnings History

BeatMissNo estimate

Sep 2026upcoming

Next quarter

Reports Oct 29, 2026.

Consensus is $6.50 EPS for Sep 2026 across 6 estimates, ranging $5.61 to $6.80.

MPWR Jun 2026

Reported Jul 30, 2026

: 11.78%
: +8.35%

: $4.84
: $5.41
: —
: $980.64M

Reported results

: $980.64M; from $664.57M
: 55.18%; from 55.08%
: $303.89M; from $164.76M
: 30.99%; from 24.79%
: $257.30M; from $135.01M
: $5.22; from $2.81

Highlights

- Revenue was $980.642 million, up 47.6% from $664.574 million in Q2 FY2025 and up from $0.80 billion in Q1 FY2026.
- Gross profit reached $541.070 million, producing a 55.2% gross margin, while operating income was $303.894 million and operating margin was 31.0%.
- Net income was $257.298 million, compared with $135.009 million in the year-earlier quarter; diluted earnings per share were $5.22 versus $2.81.
- Research and development expense increased to $118.618 million from $96.266 million, while selling, general and administrative expense rose to $118.558 million from $104.992 million.
- The supplied material does not provide segment-level revenue or profit figures, forward revenue or margin guidance, or a separate capital-expenditure amount.

Analysis

No consensus figures are available, so the quarter cannot be judged against an external estimate. On the reported numbers, it was substantially stronger year over year: revenue rose 47.6% to $980.642 million from $664.574 million, and net income increased 90.6% to $257.298 million from $135.009 million. Revenue also increased from $0.80 billion in Q1 FY2026. Gross profit grew to $541.070 million, with gross margin holding at approximately 55.2%, while operating income climbed to $303.894 million and operating margin expanded to approximately 31.0% from 24.8% in Q2 FY2025. The operating leverage came despite higher spending: research and development increased to $118.618 million from $96.266 million, and selling, general and administrative expense rose to $118.558 million from $104.992 million. The filing supplied does not break out segment performance, so it does not identify which businesses carried or dragged results.

Guidance

No forward guidance was given in the supplied material. The filing reports quarterly and six-month results through June 30, 2026, but does not include ranges for the next quarter or full year covering revenue, gross margin, operating margin, earnings, or capital expenditures. It therefore provides no comparison with a prior guide and no stated assumptions or caveats for future periods. Segment-specific outlook information is also absent, leaving the reported quarter as the only period for which detailed financial figures are available.

What drove it

Revenue growth — Revenue increased to $980.642 million from $664.574 million in the year-earlier quarter.
Gross profit — Gross profit rose to $541.070 million, versus $366.016 million in Q2 FY2025.
Operating leverage — Operating income increased to $303.894 million from $164.758 million despite total operating expenses rising to $237.176 million from $201.258 million.
Earnings growth — Net income reached $257.298 million, compared with $135.009 million in the prior-year quarter.

Watch items

Inventories increased to $675.849 million at June 30, 2026, from $564.649 million at December 31, 2025, creating a larger inventory balance that may require monitoring.
Operating expenses increased while the company continues to invest heavily: research and development rose to $118.618 million from $96.266 million, and selling, general and administrative expense rose to $118.558 million from $104.992 million.
The filing identifies customer-concentration risk involving product sales through distribution arrangements, but the supplied material does not provide the related customer percentages or amounts.
The supplied filing provides no forward guidance, segment outlook, or separate capital-expenditure figure, limiting visibility into the sustainability of the reported growth and margins.