Monolithic Power Q3

Dirty30 · 2026-10-30T11:33:34.672141Z

$MPWR No AI Without Power Management 🟢 PRO: Why This Report Is a Masterpiece A historic milestone: For the first time, MPS has surpassed the billion mark in quarterly revenue ($1.20 billion, a massive increase of +63.1% YoY and +22.6% quarter-over-quarter). The AI and server boom is in full swing: The Enterprise Data (AI & Server Power Management) is skyrocketing by +164.6% YoY to $506.7 million and is now by far the largest revenue generator. Communications jumped by +134.7% YoY to $187.4 million. Earnings far exceeded expectations: Adjusted non-GAAP EPS soars to $8.19 (previous year: $4.73). Analysts had expected an average of just $7.71—a massive beat. Strong margins & scalability: The GAAP gross margin climbs slightly to 55.4%. The ingenious, fabless business model ensures that MPS can expand capacity to $8 billion by the end of 2027 without having to invest vast amounts of capital in factory buildings. Aggressive Share Buybacks: In Q3, MPS repurchased over $450 million—the ultimate sign of management’s confidence in its own stock. 🔴 CONS: The fly in the ointment (and why the stock is correcting slightly) Expectations are extremely high: The stock has performed strongly leading up to the earnings report. A revenue beat of “only” $50 million above estimates isn’t enough for some short-term traders to further inflate the valuation. Weakness in the consumer segment: The Consumer is the only segment showing year-over-year weakness, declining by -11.6% YoY to $64 million. This shows that traditional consumer electronics are still in a slump. Inventory: Although internal inventory levels have fallen slightly, they remain at 130 days , which ties up working capital. Concentration Risk in AI: Because growth is driven almost exclusively by Enterprise Data (AI servers), the stock is extremely sensitive to any signs of a slowdown in the global AI infrastructure cycle.

$MPWR (+2,09 %) No AI Without Power Management

🟢 PRO: Why This Report Is a Masterpiece

A historic milestone: For the first time, MPS has surpassed the billion mark in quarterly revenue ($1.20 billion, a massive increase of +63.1% YoY and +22.6% quarter-over-quarter).

The AI and server boom is in full swing:
The Enterprise Data (AI & Server Power Management) is skyrocketing by +164.6% YoY to $506.7 million and is now by far the largest revenue generator.
Communications jumped by +134.7% YoY to $187.4 million.

Earnings far exceeded expectations: Adjusted non-GAAP EPS soars to $8.19 (previous year: $4.73). Analysts had expected an average of just $7.71—a massive beat.

Strong margins & scalability: The GAAP gross margin climbs slightly to 55.4%. The ingenious, fabless business model ensures that MPS can expand capacity to $8 billion by the end of 2027 without having to invest vast amounts of capital in factory buildings.

Aggressive Share Buybacks: In Q3, MPS repurchased over $450 million—the ultimate sign of management’s confidence in its own stock.

🔴 CONS: The fly in the ointment (and why the stock is correcting slightly)

Expectations are extremely high: The stock has performed strongly leading up to the earnings report. A revenue beat of “only” $50 million above estimates isn’t enough for some short-term traders to further inflate the valuation.

Weakness in the consumer segment: The Consumer is the only segment showing year-over-year weakness, declining by -11.6% YoY to $64 million. This shows that traditional consumer electronics are still in a slump.

Inventory: Although internal inventory levels have fallen slightly, they remain at 130 days , which ties up working capital.

Concentration Risk in AI: Because growth is driven almost exclusively by Enterprise Data (AI servers), the stock is extremely sensitive to any signs of a slowdown in the global AI infrastructure cycle.