Monolithic Power Systems (NASDAQ:MPWR) Announces Earnings Results

Key Points

• Monolithic Power Systems beat Q1 expectations with $5.10 GAAP EPS (consensus $4.89) and revenue of $804M, up ~26% year‑over‑year.
• Management raised Q2 revenue guidance to $890–$910M, set an enterprise data growth floor of about 85% YoY, and is expanding manufacturing capacity toward a $6 billion target to support higher‑power applications.
• Risks include gross margin near the low end (~55.5%) with potential second‑half headwinds, operating cash flow down ~59% YoY (~$105M), and substantial recent insider selling.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) released its quarterly earnings data on Thursday. The semiconductor company reported $5.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.89 by $0.21, FiscalAI reports. The company had revenue of $804.19 million during the quarter, compared to the consensus estimate of $781.93 million. Monolithic Power Systems had a net margin of 22.07% and a return on equity of 18.33%. Monolithic Power Systems's revenue for the quarter was up 26.1% on a year-over-year basis. During the same period in the previous year, the firm earned $4.04 earnings per share.

Here are the key takeaways from Monolithic Power Systems' conference call:

• MPS reported record Q1 revenue of $804 million, up 7% sequentially and 26% year‑over‑year, led by a 33% sequential jump in communications (optical modules and switches).
• The company raised its enterprise data growth floor to about 85% year‑over‑year, citing extended ordering/backlog and sampling of high‑speed DDR5 interface products at major customers, improving near‑term visibility.
• MPS is expanding manufacturing capacity beyond its prior $4 billion plan toward a $6 billion target with geographically diversified supply‑chain plans and ongoing BCD scaling and module automation to support higher power‑density applications.
• Gross margin remains near the low end of the company’s model (~55.5%) with only modest Q2 improvement guided and caution about potential second‑half headwinds that could constrain profit expansion despite revenue gains.
• MPS is sampling 800‑volt SiC step‑down solutions, developing GaN for lower‑voltage segments, and pursuing robotics/physical‑AI design wins — signaling longer‑term TAM upside but with uncertain timing and revenue impact.

Monolithic Power Systems Stock Up 5.7%

MPWR stock opened at $1,614.41 on Friday. Monolithic Power Systems has a fifty-two week low of $594.84 and a fifty-two week high of $1,661.79. The firm's 50-day simple moving average is $1,228.53 and its 200 day simple moving average is $1,085.85. The stock has a market cap of $79.30 billion, a PE ratio of 126.72, a price-to-earnings-growth ratio of 3.86 and a beta of 1.48.

Monolithic Power Systems Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were given a $2.00 dividend. This is a boost from Monolithic Power Systems's previous quarterly dividend of $1.56. This represents a $8.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Monolithic Power Systems's dividend payout ratio is 62.79%.

Key Stories Impacting Monolithic Power Systems

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Q1 beat — MPS reported GAAP EPS of $5.10 that topped consensus and delivered revenue of roughly $804M, up ~26% year‑over‑year; margins and operating profit expanded, signaling healthy demand across its power‑semiconductor products. Monolithic Power (MPWR) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Strong forward revenue guide — management updated Q2 revenue guidance to $890M–$910M, well above the street consensus (~$818.6M), which is the primary driver of the after‑hours rally. Monolithic Power Systems pops as Q1 results, guidance blow past estimates
• Positive Sentiment: Legal win — MPS prevailed in a patent‑infringement case brought by Bel Power; the case was dismissed and Bel Power agreed to pay MPS’s court costs, removing a legal overhang. Monolithic Power Systems Prevails in Patent Infringement Lawsuit
• Neutral Sentiment: Analyst backdrop — Street sentiment remains generally positive (multiple Buy/Overweight ratings; median price target roughly $1,350), which supports the rally but also leaves room for profit‑taking at current levels. Monolithic Power Systems (MPWR) Stock Rises on Q1 2026 Earnings
• Neutral Sentiment: Conflicting third‑party data — some vendors reported different EPS or diluted‑EPS figures versus the company release; verify numbers from the company filing/press release before trading on minor discrepancies. Quiver earnings summary (includes third‑party data)
• Negative Sentiment: Cash‑flow weakening — operating cash flow fell sharply year‑over‑year (reported drop of ~59% to ~$105M) while liabilities increased; this may concern investors who focus on cash generation despite strong GAAP profits. Quiver earnings summary (cash‑flow details)
• Negative Sentiment: Heavy insider selling — filings show substantial insider share sales over recent months (multiple executives selling large blocks), which can be viewed negatively by some investors even if sales may be for diversification/liquidity. Quiver insider trading and institutional activity

Wall Street Analyst Weigh In

A number of research firms recently weighed in on MPWR. Citigroup raised their price target on shares of Monolithic Power Systems from $1,250.00 to $1,350.00 and gave the company a "buy" rating in a report on Monday, February 9th. Stifel Nicolaus upped their price objective on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Truist Financial raised their target price on Monolithic Power Systems from $1,375.00 to $1,396.00 and gave the company a "buy" rating in a research note on Friday, February 6th. Zacks Research lowered Monolithic Power Systems from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 10th. Finally, William Blair reissued an "outperform" rating on shares of Monolithic Power Systems in a report on Thursday, March 5th. Twelve equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Monolithic Power Systems has an average rating of "Moderate Buy" and a consensus price target of $1,268.42.

Insiders Place Their Bets

In other news, CFO Theodore Blegen sold 21,725 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total value of $25,443,451.00. Following the completion of the sale, the chief financial officer directly owned 82,353 shares of the company's stock, valued at approximately $96,448,539.48. This represents a 20.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Victor K. Lee sold 400 shares of the stock in a transaction on Monday, February 9th. The shares were sold at an average price of $1,212.16, for a total value of $484,864.00. Following the transaction, the director directly owned 27,756 shares of the company's stock, valued at approximately $33,644,712.96. The trade was a 1.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 137,683 shares of company stock worth $158,138,447. 3.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Monolithic Power Systems

A number of hedge funds have recently modified their holdings of the stock. IFP Advisors Inc increased its position in Monolithic Power Systems by 171.4% during the third quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company's stock worth $35,000 after buying an additional 24 shares during the last quarter. Greenline Wealth Management LLC bought a new stake in shares of Monolithic Power Systems during the 4th quarter worth about $38,000. DV Equities LLC acquired a new position in shares of Monolithic Power Systems during the 4th quarter valued at about $61,000. MUFG Securities EMEA plc acquired a new position in shares of Monolithic Power Systems during the 2nd quarter valued at about $103,000. Finally, Summit Securities Group LLC raised its stake in shares of Monolithic Power Systems by 73.5% in the 4th quarter. Summit Securities Group LLC now owns 144 shares of the semiconductor company's stock valued at $131,000 after acquiring an additional 61 shares in the last quarter. 93.46% of the stock is owned by institutional investors and hedge funds.

About Monolithic Power Systems

Monolithic Power Systems NASDAQ: MPWR is a fabless semiconductor company that designs and supplies high-performance power management solutions for a broad range of electronic systems. Founded in 1997 and headquartered in Kirkland, Washington, the company focuses on analog and mixed-signal integrated circuits that convert, regulate and monitor electrical power with an emphasis on efficiency, integration and power density.

MPS's product portfolio includes DC‑DC switching regulators, power modules, power management ICs (PMICs), LED drivers, battery-management ICs, motor drivers, and AC‑DC power solutions.