MPWR · Q2 2026 Earnings

Bullish

Monolithic Power Systems

Reported July 30, 2026

30-second summary

Revenue of $980.6M (+47.6% YoY, +21.9% QoQ) beat consensus by 8.5% and cleared the $910M high end of the guide by $70.6M, driven by Enterprise Data at $380.6M (+164.3% YoY) and Communications at $131.5M (+78.3% YoY). Non-GAAP EPS of $6.50 topped the $5.88 estimate by 10.5%. The bigger signal is forward: Q3 revenue is guided to $1.14B–$1.16B, implying +54–57% YoY off the $740M Q3 FY2025 base and another ~17% QoQ step-up on top of a quarter that already grew 22% sequentially.

Headline numbers

EPS

Q2 FY2026

$6.50

+10.5% vs est.

Revenue

Q2 FY2026

$0.98B

+47.6% YoY

+8.5% vs est.

Gross margin

Q2 FY2026

55.6%

Operating margin

Q2 FY2026

37.5%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$0.98B	$0.66B	+47.5%	$0.80B	+21.9%
EPS	$6.50	$4.21	+54.4%	$5.10	+27.5%
Gross margin	55.6%	55.1%	+50bps	55.5%	+10bps
Operating margin	37.5%	24.8%	+1270bps	35.8%	+170bps

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$890 million to $910 million	$980.6 million	+$70.6 million above high end of guide	Beat
Non-GAAP Gross Margin	Q2 FY2026	55.3% to 55.9%	55.6%	in-line	Met
GAAP Gross Margin	Q2 FY2026	55.1% to 55.7%	55.6%	in-line	Met
Stock-based Compensation and Related Expenses	Q2 FY2026	$53.8 million to $55.8 million	$53.2 million to $55.2 million	range shifted down by ~$0.6M at midpoint	Met

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	$1,140 million to $1,160 million	+54% to +57% YoY
GAAP Gross Margin	Q3 FY2026	55.2% to 55.8%	—
Non-GAAP Gross Margin	Q3 FY2026	55.4% to 56.0%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
GAAP Operating Expenses	Q2 FY2026	$219.1 million to $225.1 million	Withdrawn — no replacement	—	Withdrawn
Non-GAAP Operating Expenses	Q2 FY2026	$167.0 million to $171.0 million	Withdrawn — no replacement	—	Withdrawn
Interest and Other Income	Q2 FY2026	$7.4 million to $7.8 million	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Fully Diluted Shares Outstanding (49.1 to 49.5 million shares), Non-GAAP Tax Rate (15%)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Enterprise Data	$0.381B	$0.144B	+164.3%
Storage & Computing	$0.2B	—	+2.3%
Automotive	$0.157B	$0.145B	+8.3%
Communications	$0.132B	$0.074B	+78.2%
Industrial	$0.055B	$0.047B	+17.3%
Consumer	$0.057B	$0.06B	-4.9%
Enterprise Data YoY Growth	164.3%	—	—
Communications YoY Growth	78.3%	—	—

Capacity & utilization

Q2 FY2026

Segment	Q2 FY2026
Days Sales Outstanding	32 days
Days Inventory Outstanding (next quarter revenue)	121 days
Cash, Cash Equivalents & Short-term Investments	$1,413.8M

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Operating Margin (Non-GAAP)	37.5%	—	—
Gross Margin (Non-GAAP)	55.6%	—	—
Operating Cash Flow	$227.9M	—	—

Management tone

No transcript available for this print; tone analysis skipped. The tone read is inferred from the press-release qualitative statements and guidance step-ups.

Two statements from the release carry the tone signal. First: "We extended our capacity goal significantly beyond $6B to support future revenue growth." The $6B target was itself an extension of the prior $4B plan disclosed only one quarter ago. Two capacity expansions in six months, both framed as demand-driven, is the clearest tone signal available without transcript. Second: "We received initial orders for high-speed DDR5 memory components which we expect to grow our SAM into next year" and "began sampling High Voltage AC to DC products for 800V data center architectures." Both are new product surfaces disclosed for the first time; the 800V sampling in particular follows the Q1 commentary that MPWR was co-developing 800V solutions with customers.

The 1500+ new sockets shipped in ADAS and other applications is a concrete durability signal. It implies the automotive ramp Bernie framed as H2-loaded is being designed in even if it isn't yet in the segment revenue line.

Answers to last quarter's watch list

Whether Q2 revenue actuals hit or exceed the $900M midpoint. Revenue printed at $980.6M — $70.6M above the $910M high end and $80M above the midpoint, an 8.5% clean beat on consensus. The 85% Enterprise Data floor and the +12% QoQ acceleration guide were both conservative in retrospect.

Resolved positively

Whether Q2 non-GAAP opex prints at or below the guided $169M midpoint. Non-GAAP opex actuals were not disclosed in the numbers extraction, so a direct comparison to the $167M–$171M guide is not possible on this print. What is disclosed is that Q3 non-GAAP opex is guided to $201M–$205M — a $34M midpoint step-up in a single quarter, the largest sequential opex reset in this brief's coverage period. The structural ramp toward $200M+ arrived faster than the watch item's $180M feared level.

Resolved negatively

Whether Enterprise Data sustains above $260M after the $29M Q1 sequential step. Enterprise Data printed $380.6M, a $118M sequential gain — four times the Q1 step. The 85% 2026 growth floor is now well below the trajectory implied by H1 alone.

Resolved positively

Whether management discloses a full-year 2026 revenue range at the Q2 print. No FY2026 revenue range was disclosed. Only the FY2026 non-GAAP tax rate (15%) was reaffirmed. Given the Q3 guide implies FY2026 revenue tracking well above $4B against the $2.79B FY2025 base, the continued withholding of a bounded FY range is now conspicuous.

Continue monitoring

Whether days inventory normalizes from 157 to the guided 140. Days inventory landed at 121 days — 19 days below the 140-day target and 36 days below the Q1 level. The inventory build converted to shipments faster than planned; this is the cleanest sell-through validation available on the print.

Resolved positively

Whether Storage and Computing continues recovering toward the Q3 FY2025 peak of $186.6M. Segment printed $199.8M, exceeding the $186.6M peak by $13M and up $25M QoQ. The mix-shift read on the Q4 decline is now fully vindicated.

Resolved positively

What to watch into next quarter

Whether Q3 revenue actuals clear the $1.16B high end and by how much. Q2 beat its high end by $70.6M on a $910M base; a proportional Q3 beat would put actuals near $1.23B. A beat of less than $30M above the high end would suggest the sequential slope is finally moderating.

Whether Q3 non-GAAP opex prints at or below the $203M midpoint. The $34M midpoint step-up is the largest single-quarter opex reset in coverage. A print above the $205M high end would push the run-rate above $210M and materially compress the operating margin expansion trajectory despite revenue clearing $1.15B.

Whether Enterprise Data holds above $380M or continues expanding sequentially. The segment added $118M QoQ in Q2. Even a flat sequential Q3 keeps the 164% YoY momentum intact given the $148M Q3 FY2025 comp. A sequential decline would be the first signal that the ordering-pattern extension is peaking.

Whether Automotive's H2 ramp finally shows up in the Q3 segment line. Bernie framed Q1 auto as H1-flat with H2 ramp. Q2 delivered +$5M QoQ — inconsistent with a meaningful H2 acceleration unless Q3 shows a $20M+ sequential gain. The 1500 new sockets shipped is design-in evidence but not yet revenue.

Whether management discloses an FY2026 revenue range or capacity target beyond the extended-$6B language. Two capacity expansions in six months with no bounded FY guide is the sharpest disconnect in the disclosure regime. A quantified extended capacity figure at the Q3 print would be the highest-conviction step management has taken.

Whether operating margin expands above 37.5% or gives back on the Q3 opex step. Q2 operating margin was +170bps QoQ. If Q3 revenue lands at midpoint and opex at midpoint, the implied operating margin is roughly 37.8% — flat. A drop below 37% would suggest the opex ramp is now outrunning revenue leverage.

Sources

Monolithic Power Systems Q2 FY2026 press release (SEC Edgar Form 8-K exhibit): https://www.sec.gov/Archives/edgar/data/1280452/000162828026051029/mpwr-20260630xexx991.htm
Consensus estimates via tradefeeds as of 2026-07-30.

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