Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Monolithic Power Systems rode a 164.3% surge in enterprise data revenue to a record Q2 FY2026, as its power management chips for AI servers saw unprecedented demand. Revenue and net income grew at multi-year highs, while operating margins widened sharply on expense leverage. Gross margin was unchanged, and management flagged geopolitical and tariff risks, but boosted its buyback authorization by $500 million. The results reflect both booming AI infrastructure spending and effective cost discipline, though heavy reliance on Asia-based customers and a single growth driver present concentration risks.
Revenue
$980.64M
+47.56% YoY
EPS (Diluted)
$5.22
+85.77% YoY
Gross Margin
55.2%
+0.1 pts YoY
Operating Income
$303.89M
+84.45% YoY
Source: SEC XBRL
Monolithic Power Systems (MPWR) reported Q2 FY2026 revenue of $980.64M, up 47.6% year over year. Operating margin was 31.0%, up 6.2 points from 24.8% a year earlier. MPWR's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 6.50 | 5.98 | Beat +8.6% |
| Mar 2026 | 5.10 | 4.99 | Beat +2.1% |
| Dec 2025 | 4.79 | 4.82 | Miss -0.6% |
| Sep 2025 | 4.73 | 4.73 | Miss -0.0% |
Adjusted (non-GAAP) EPS of $6.50 versus the $5.98 analyst consensus — a +8.6% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $5.22.
Compiled by AI from 10-Q Item 2 of this filing
Enterprise data revenue jumped 164.3% to $380.6 million, fueled by higher sales of power management solutions for AI and server applications, making it the largest end market at 38.8% of total revenue.
Source: 10-Q Item 2 MD&A
Operating margin improved to 31.0% from 24.8% as revenue growth far outpaced the increase in R&D and SG&A expenses, which declined as a percentage of revenue to 24.2% from 30.3%.
Source: 10-Q Item 2 MD&A
SG&A expenses were pressured by a $5.7 million increase in legal expenses, partly offset by lower stock-based compensation, signaling ongoing litigation risks.
Source: 10-Q Item 2 MD&A
Total purchase obligations stood at $571.0 million, with $542.1 million due within a year, reflecting significant wafer and manufacturing commitments to support growth.
Source: 10-Q Item 2 MD&A
In July 2026, the board increased the stock repurchase program by an additional $500 million, complementing the existing $489.3 million remaining authorization, signaling strong confidence in cash generation.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 3 high, 2 medium, 0 low
The company is exposed to tariffs, export controls, and retaliatory measures between the U.S. and China, which could disrupt its supply chain or increase costs. While no material impact has been recognized to date, the risk remains elevated amid ongoing trade tensions.
Source: 10-Q Item 2 MD&A
Approximately 93-94% of revenue derives from direct customers in Asia, making the company vulnerable to regional economic downturns, regulatory changes, or geopolitical instability.
Source: 10-Q Item 2 MD&A
The recent revenue surge is heavily reliant on enterprise data products for AI, which could be cyclical and subject to rapid shifts in technology or customer investment trends. A slowdown in AI infrastructure spending would significantly impact growth.
Source: 10-Q Item 2 MD&A
The company has experienced increased legal expenses and faces ongoing litigation risks that could adversely affect financial results or distract management. Legal costs were a notable drag on SG&A in the quarter.
Source: 10-Q Item 2 MD&A
The company acknowledges a material weakness in its internal control over financial reporting, which it must timely remediate to prevent potential misstatements. Failure to do so could erode investor confidence and lead to regulatory consequences.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 980.64 $M | 664.57 $M | +47.56% |
Cost of Revenue $M | 439.57 $M | 298.56 $M | +47.23% |
Gross Profit $M | 541.07 $M | 366.02 $M | +47.83% |
Operating Income $M | 303.89 $M | 164.76 $M | +84.45% |
Net Income $M | 257.30 $M | 135.01 $M | +90.58% |
EPS (Basic) $ | 5.24 $ | 2.82 $ | +85.82% |
EPS (Diluted) $ | 5.22 $ | 2.81 $ | +85.77% |
SG&A Expense $M | 118.56 $M | 104.99 $M | +12.92% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Monolithic Power Systems (MPWR) delivered strong Q1 FY2026 results with revenue surging 26.1% YoY to $804.2M and net income jumping 43.1% to $193.2M, driven by robust operating leverage that expanded operating margin by 350 basis points to 30.0%.
MPWR delivered strong FY2025 revenue growth of 26.4% to $2.79B and expanded operating margins, though reported net income fell 61% year-over-year primarily due to a large one-time gain in the prior year that inflated FY2024 net income.
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