Abstract

Monolithic Power will report second-quarter 2026 results on July 30, 2026 Post Market; consensus points to accelerating revenue and profit growth with improving operating leverage and robust demand in enterprise data and automotive.

Market Forecast

For the current quarter, market-tracking estimates indicate revenue of 0.90 billion US dollars, implying 38.62% year-over-year growth, with EPS at 5.87, and EBIT around 0.33 billion US dollars, up 46.31% year-over-year; management’s implied mix suggests continued strength in enterprise data and storage-compute, while gross margin and net margin are expected to track near recent levels pending product and mix effects. Enterprise data remains the largest contributor by revenue, and automotive is highlighted by investors as a sustained outgrowth vector as content per vehicle rises.

The most promising segment is enterprise data at 0.26 billion US dollars last quarter, supported by high-performance power solutions for servers, accelerators, and power modules sold into cloud and AI infrastructure, with analyst expectations for strong double-digit year-over-year expansion tied to continued AI server deployments.

Last Quarter Review

In the last reported quarter, Monolithic Power delivered revenue of 0.80 billion US dollars, gross profit margin of 55.34%, GAAP net profit attributable to the parent company of 0.19 billion US dollars, net profit margin of 24.03%, and adjusted EPS of 5.10, with revenue and EPS growing 26.14% and 26.24% year over year, respectively.

Quarter-over-quarter, net profit grew by 9.98%, demonstrating operating leverage as revenue expanded and product mix favored higher-value solutions. By business line, enterprise data contributed 0.26 billion US dollars, storage and compute 0.17 billion US dollars, automotive 0.15 billion US dollars, communications 0.11 billion US dollars, consumer 0.05 billion US dollars, and industrial 0.05 billion US dollars.

Current Quarter Outlook (with major analytical insights)

Main business trajectory

Management and the Street look for continued expansion in enterprise-centric power management, anchored by AI and cloud demand. Product cycles in multiphase controllers, power modules, and high-current solutions for accelerators and server CPUs tend to drive a higher average selling price and favorable gross margin mix. Given last quarter’s 55.34% gross margin baseline and the forecast revenue inflection to 0.90 billion US dollars, modest mix improvement could keep gross margin broadly stable even with component cost normalization. The key swing factor is shipment timing of AI server programs and the pace of content additions per rack; a stronger ramp in accelerator-heavy racks would support gross margin resilience, while any pushouts could tilt mix to more mainstream server platforms and cap near-term margin upside.

Most promising growth vector

Enterprise data stands out as the near-term outperformance vector, underpinned by secular AI server investments and the company’s deepening attach rate in accelerator and CPU power delivery. With 0.26 billion US dollars in revenue last quarter from enterprise data, the current quarter’s revenue guide and third-party forecasts imply continued double-digit sequential and year-over-year growth. The breadth of power stage, controller, and module offerings helps the company capture a larger share of bill-of-materials as compute densities and power requirements rise. Execution risk centers on customer qualification cycles and supply alignment with leading cloud operators; however, unit visibility appears healthier than a year ago, and pricing remains disciplined given differentiated performance.

Stock price swing factors this quarter

The stock will likely react to four datapoints on July 30, 2026: revenue versus the approximately 0.90 billion US dollars bar, adjusted EPS versus 5.87, gross margin versus the mid-50s baseline, and order/booking color tied to AI servers and automotive. Upside surprise potential stems from stronger AI program ramps and higher module mix that could lift gross margin above recent levels. Downside risk would be any commentary on pushouts in cloud deployments, slower automotive program ramps, or a mix shift toward consumer and mainstream compute that dilutes margin. Investors will also parse the sequential growth outlook into the September quarter for signs that double-digit year-over-year expansion can persist into the back half.

Analyst Opinions

Across recent institutional commentary this year through July 23, 2026, the balance of opinions skews bullish, with a clear majority expecting Monolithic Power to outpace sector growth on AI-driven enterprise demand and steady automotive content gains. Several well-followed firms frame the setup positively: large-cap semiconductor analysts emphasize that the company’s AI server exposure is translating into sustained revenue acceleration, while its diversified base across data center, storage-compute, and automotive provides resilience. The bullish case cites improving EBIT efficiency, as forecast EBIT of roughly 0.33 billion US dollars implies year-over-year growth of 46.31% and an upward trajectory in operating leverage. Analysts also flag that last quarter’s outperformance versus consensus and the 9.98% sequential net income increase provide a constructive starting point.

Consensus also highlights watch items. The near-term debate focuses on whether AI server deployments can continue to offset any moderation in consumer or industrial end-markets, and whether gross margin can remain in the mid-50s as product and customer mix evolve. Nonetheless, the majority view calls for a beat-or-in-line revenue outcome near 0.90 billion US dollars with EPS near or above 5.87 and for management to reiterate a back-half acceleration narrative centered on enterprise data. A minority of cautious voices point to the risk that some cloud customers may rebalance inventory or stagger ramps, which could soften sequential growth, but the prevailing opinion is that order momentum remains sufficient to support the outlook.