Monolithic Power Q2 revenue jumps 48%, beating estimates on strong enterprise data demand

Monolithic Power Systems

30/07/2026 21:11

Overview
US semiconductor power solutions firm's Q2 revenue grew 48% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 54% yr/yr
Company authorized additional $500 mln for stock repurchases, total now $1 bln

Outlook
Company forecasts Q3 2026 revenue between $1.14 bln and $1.16 bln
Monolithic Power Systems expects Q3 non-GAAP gross margin of 55.4% to 56.0%
Company says diversified market strategy unchanged despite fluid geopolitical, macro-economic environment

Result Drivers
ENTERPRISE DATA DEMAND - Strong sequential and year-over-year revenue growth in Enterprise Data driven by higher sales of power management solutions for AI and server applications
COMMUNICATIONS SALES - Higher sales of power solutions for optical modules and switches boosted Communications revenue
NEW PRODUCT ORDERS - Initial orders for high-speed DDR5 memory components and sampling of new high voltage AC to DC products supported growth and expanded addressable market

Company press release: ID:nGNX6FnzsL

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$980.60 mln
$902.50 mln (13 Analysts)
Q2 Adjusted Gross Margin
 
55.60%
 
Q2 Adjusted Operating Income
 
$367.70 mln
 
Q2 Operating Expenses
 
$237.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Monolithic Power Systems Inc is $1,800.00, about 44.1% above its July 29 closing price of $1,248.76
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 48 three months ago

Reuters Recommended Reads
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July 27 - Navitas Semiconductor Q2 revenue rises on AI infrastructure demand
July 28 - NXP Semiconductors forecasts upbeat quarter as AI push pays off

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)