Monolithic Power Systems delivered a solid fourth quarter, with results surpassing Wall Street’s revenue and profit estimates and prompting a positive market response. Management attributed this quarter’s performance to robust demand in enterprise data and communications end markets, as well as continued momentum in automotive. Tony Balow, vice president of finance, emphasized, “Our non-enterprise data end markets grew by over 40% year-over-year, showcasing the strength of our diversified business model.” The company’s execution and expansion in both established and emerging product lines set the stage for sustained growth.
Is now the time to buy MPWR? Find out in our full research report (it’s free for active Edge members).
Monolithic Power Systems (MPWR) Q4 CY2025 Highlights:
- Revenue: $751.2 million vs analyst estimates of $742.4 million (20.8% year-on-year growth, 1.2% beat)
- Adjusted EPS: $4.79 vs analyst estimates of $4.74 (1.1% beat)
- Adjusted EBITDA: $282.9 million vs analyst estimates of $277.2 million (37.7% margin, 2.1% beat)
- Revenue Guidance for Q1 CY2026 is $780 million at the midpoint, above analyst estimates of $738 million
- Operating Margin: 26.6%, in line with the same quarter last year
- Inventory Days Outstanding: 153, up from 139 in the previous quarter
- Market Capitalization: $58.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Monolithic Power Systems’s Q4 Earnings Call
- Chris Caso (Wolfe Research) asked about trends within market segments; Vice President Tony Balow described strong order patterns and backlog, especially in enterprise data and communications, expected to extend into the next quarter.
- Joe Quatrochi (Wells Fargo) inquired about the composition of enterprise data growth; CEO Michael Hsing emphasized design wins across both AI and traditional server applications, noting blurred lines between CPU and GPU platforms.
- Quinn Bolton (Needham) questioned whether Monolithic Power Systems is gaining share in AI power; Hsing declined to comment on competitors but asserted confidence in the company’s product portfolio and broad customer engagement.
- Rick Schafer (Oppenheimer) asked about optical transceiver ramp and automotive drivers; management noted rapid optical module growth and highlighted new automotive content in zonal and 48-volt architectures as key future drivers.
- Kelsey Chia (Citi Research) probed on gross margin dynamics and market share; management said they are operating at the low end of their margin model and expect incremental improvements as backlog visibility improves.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of adoption for Monolithic Power Systems’ new AI data center power solutions, (2) execution and market response to the expanded automotive product lineup in 48-volt and zonal architectures, and (3) progress in scaling supply chain capacity to sustain growth. We will also monitor gross margin trends as the company manages product mix and cost pressures.
Monolithic Power Systems currently trades at $1,196, up from $1,156 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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