Monolithic Power Systems Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy MPWR?
Source: seekingalpha
- Earnings Highlights: Monolithic Power Systems (MPWR) reported a Q4 non-GAAP EPS of $4.79, beating expectations by $0.05, with revenue of $751.2 million reflecting a 20.8% year-over-year increase, surpassing market expectations by $9.51 million, indicating robust financial performance.
- Future Guidance: The company anticipates Q1 2026 revenue between $770 million and $790 million, exceeding the consensus estimate of $738.38 million, demonstrating confidence in future growth prospects.
- Margin Expectations: GAAP gross margin is projected to be between 54.9% and 55.5%, while non-GAAP gross margin is expected to range from 55.2% to 55.8%, reflecting efforts to control costs and enhance profitability.
- Shareholder Returns: The company aims for a non-GAAP tax rate of 15.0% for 2026, with fully diluted shares outstanding expected to be between 49.0 million and 49.4 million, and an 8% increase in share price, showcasing market optimism regarding its future performance.
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Analyst Views on MPWR
Wall Street analysts forecast MPWR stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 1155.930
Low
950.00
Averages
1200
High
1375
Current: 1155.930
Low
950.00
Averages
1200
High
1375
About MPWR
Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Future Growth Expectations: The company anticipates revenue growth of over 22% for Q1 2026, driven by robust demand and a strong backlog of orders, particularly in the data center segment.
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- Sales Growth: The company achieved quarterly sales of $751.155 million, exceeding the analyst consensus estimate of $739.928 million, demonstrating its successful expansion of market share amid strong demand.
- Strategic Transformation: CEO Michael Hsing noted that the company is transitioning from a chip-only supplier to a comprehensive silicon-based solutions provider, a strategic shift that lays the groundwork for future growth and enhances competitiveness.
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- Payment Schedule: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly and strengthening the relationship between the company and its investors.
- Dividend Growth Trend: This significant increase in dividends indicates the company's success in maintaining profitability and cash flow management, which is expected to drive stock price appreciation and enhance its attractiveness among investors.
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- Analyst Rating Upgrade: Needham maintained its Buy rating on MPWR and raised the price target from $1,250 to $1,300, indicating optimism about the company's growth potential in the enterprise data sector.
- Healthy Demand Signals: The company's book-to-bill ratio was well above 1:1, and channel inventory levels are at the low end of the target range, suggesting robust overall demand and potential for sustained future performance.
- Enterprise Data Growth Outlook: Revenue from enterprise data is expected to increase by over 50% by 2026, primarily driven by design wins across its customer base, highlighting the company's competitive edge in the market.
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- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
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Stock Sale Announcement: Michael Hsing intends to sell 34,000 shares of Monolithic Power Systems (MPWR) on February 10, with a total market value of approximately $38.84 million.
Reduction in Shareholding: Hsing has reduced his shareholding in Monolithic Power Systems by 124.92K shares since November 11, 2025, amounting to a total value of approximately $131.62 million.
See More
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Stock Performance Overview: Over the past three months, Monolithic Power Systems (MPWR) has seen a significant stock increase of 26%, while competitors like NVIDIA and AMD have only seen minor fluctuations or declines.
Financial Results: Monolithic reported a revenue of $751 million for Q4 2025, marking a 21% increase from the previous year, and exceeded estimates, indicating strong financial health and growth potential.
Future Growth Expectations: The company anticipates revenue growth of over 22% for Q1 2026, driven by robust demand and a strong backlog of orders, particularly in the data center segment.
Market Position and Valuation: Despite high valuation concerns, Monolithic Power Systems remains a strong player in the semiconductor industry, with analysts suggesting potential for continued growth and investment opportunities.
See More
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- Strong Performance: Monolithic Power Systems reported Q4 earnings of $4.79 per share, surpassing analyst expectations of $4.72, indicating a robust enhancement in profitability that solidifies its market position.
- Sales Growth: The company achieved quarterly sales of $751.155 million, exceeding the analyst consensus estimate of $739.928 million, demonstrating its successful expansion of market share amid strong demand.
- Strategic Transformation: CEO Michael Hsing noted that the company is transitioning from a chip-only supplier to a comprehensive silicon-based solutions provider, a strategic shift that lays the groundwork for future growth and enhances competitiveness.
- Stock Price Reaction: Following the earnings announcement, Monolithic Power's shares rose by 4.4% to $1,206.55, reflecting market optimism regarding the company's future prospects.
See More
Monolithic Power Systems Announces 28.2% Increase in Quarterly Dividend
- Quarterly Dividend Increase: Monolithic Power Systems has raised its quarterly dividend from $1.56 to $2.00 per share, marking a substantial 28.2% increase that reflects the company's robust financial performance and is likely to enhance investor confidence, potentially attracting more long-term investors.
- Payment Schedule: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly and strengthening the relationship between the company and its investors.
- Dividend Growth Trend: This significant increase in dividends indicates the company's success in maintaining profitability and cash flow management, which is expected to drive stock price appreciation and enhance its attractiveness among investors.
- Market Reaction Expectations: Analysts are generally optimistic about Monolithic Power Systems' future performance, believing that this dividend increase will further solidify its leadership position in the power management market and may stimulate increased market interest and investment.
See More
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- Strong Earnings Beat: Monolithic Power Systems (MPWR) reported fourth-quarter results that exceeded expectations, leading to a nearly 2% rise in premarket shares, reflecting market confidence in the company's future growth.
- Analyst Rating Upgrade: Needham maintained its Buy rating on MPWR and raised the price target from $1,250 to $1,300, indicating optimism about the company's growth potential in the enterprise data sector.
- Healthy Demand Signals: The company's book-to-bill ratio was well above 1:1, and channel inventory levels are at the low end of the target range, suggesting robust overall demand and potential for sustained future performance.
- Enterprise Data Growth Outlook: Revenue from enterprise data is expected to increase by over 50% by 2026, primarily driven by design wins across its customer base, highlighting the company's competitive edge in the market.
See More
