MONOLITHIC POWER SYSTEMS (MPWR)·Q4 2025 Earnings Summary
MPWR Beats Q4, Raises Enterprise Data Outlook to 50%+ Growth
February 5, 2026 · by Fintool AI Agent
Monolithic Power Systems delivered a beat-and-raise quarter with a bombshell: management raised their 2026 Enterprise Data growth outlook to 50%+ from 30-40%, with CEO Michael Hsing suggesting it could go "a lot more than that" . Q4 revenue hit a record $751.2M (+20.8% YoY), the dividend jumped 28%, and visibility improved dramatically with book-to-bill well above 1 .
Did MPWR Beat Earnings?
Yes — beat on both lines with a 9th consecutive quarter of outperformance.
*Consensus estimates from S&P Global
Revenue grew 20.8% YoY and 1.9% sequentially, driven by strength across most end markets . Non-GAAP gross margin held steady at 55.5%, flat sequentially . Non-GAAP operating income expanded to $269.0M (+21.9% YoY) with operating margin of 35.8% .
Ask Fintool AI AgentWhat Did Management Guide?
Q1 2026 guidance came in well above Street expectations.
*Consensus estimates from S&P Global
The $780M revenue midpoint implies +22% YoY growth, acceleration from Q4's pace. CEO Michael Hsing signaled confidence: "Our results demonstrate our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider" .
Enterprise Data Outlook Raised to 50%+ Growth
The biggest news from the call: management significantly raised their 2026 Enterprise Data growth outlook. CFO Bernie Blegen upgraded the floor from 30-40% last quarter to 50% growth . CEO Michael Hsing immediately interjected:
"50%? I thought that we can do a lot more than that... We won all the designs, across the boards, not from one company... They call, what, Magnificent Seven or eight... We want all the designs. And we are proven, we're one of the viable AI power supply. Also, I see the other end, we have all the capacities we can deliver this year to our customers' needs. And I don't see why not. So not only 50%, we'll be a lot more than that."
This is a dramatic upgrade from prior commentary and reflects improved visibility with book-to-bill well above 1 and backlog extending into Q2 and Q3 of 2026 .
How Did the Stock React?
MPWR shares rose +2.7% to $1,156 on earnings day, with afterhours trading pushing slightly higher to $1,160 . The stock is trading near 52-week highs ($1,226 set February 4) and up 163% from its 52-week low of $439.
The company has beaten EPS estimates in 9 consecutive quarters, building a track record of execution that has rewarded shareholders with strong multiple expansion.
What Changed From Last Quarter?
Key shifts from Q3 2025:
Enterprise Data surged 21.9% sequentially to become the largest segment, driven by AI and server power management solutions . The company noted increased sales of "power management solutions for AI and server applications" .
Inventory build of 14 days is intentional, as management is "balancing the uncertainty in the market with being prepared to capture market upturns when they occur" .
What Were the Segment Highlights?
Full Year 2025 Revenue by End Market:
The company highlighted that non-Enterprise Data end markets grew over 40% YoY, "showcasing the strength of our diversified business model" .
Ask Fintool AI AgentWhat Did Management Say About 2025 Highlights?
CEO Michael Hsing outlined five key achievements for 2025 :
- Non-Enterprise markets grew 40%+ YoY — diversification strategy working
- $4B+ manufacturing capacity secured — geographically balanced supply chain
- Record module revenue — transitioning from chips to solutions
- Automotive 48V/Zonal launches — positioning for EV architecture shifts
- Data center customer expansion — AI, server, memory, optical, and switch wins
Management emphasized the transformation "from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider" .
Q&A Highlights: What Management Said
On Visibility and Order Patterns
CFO Bernie Blegen noted a fundamental shift in customer behavior:
"In prior quarters I've said we've been experiencing a turnaround... the anomaly had been we'd been seeing very short lead times. The fundamental change... is that we are seeing longer ordering patterns because some of our customers are concerned about capacity constraints."
On Market Share and Competition
When asked if MPWR is gaining share vs. competitors doubling their AI businesses, Michael Hsing characteristically refused to engage:
"I refuse to get into a pissing contest... We are less on the stage, we let the numbers speak... In 20-21 years history, we never do that."
On 800-Volt Rack Solutions
The company is first to sample 800V power solutions for next-gen data center racks, with revenue expected end of 2027 :
"We're the first company to sample it. Now, that's a part of a pissing contest." — Michael Hsing
On Optical Modules
Optical transceivers are now approximately 5% of sales and expected to grow with the 1.6T transition . Management noted they're also engaged in CPO (co-packaged optics) and active copper for broader interconnect positioning.
On Automotive
Automotive grew 43% YoY in 2025 , with ADAS, 48V, and zonal architectures as drivers. However, management is "hesitant to put a growth rate on it for the year" given macro uncertainty around tariffs, EV subsidy changes, and memory shortages .
On Gross Margin Trajectory
Bernie Blegen signaled gross margin improvement ahead:
"We should be able to resume at some time during the year, the cadence that we've historically shown of incremental sequential improvements of maybe 10-20 basis points, quarter-over-quarter."
On Packaging Innovation
The 3 amp/mm² density modules discussed at Investor Day are now shipping this quarter, already qualified with customers .
On Michael Hsing's Tenure
When asked if he's ever retiring, Hsing noted this was his 86th earnings call and he's "looking to double it" .
Ask Fintool AI AgentWhat About the CFO Transition?
Bernie Blegen announced retirement after 10 years as CFO . Key details:
- Effective Date: After 2025 Form 10-K filing
- Interim CFO: Rob Dean (current Corporate Controller, 9 years at MPS)
- Transition: Blegen will remain to ensure smooth handoff
CEO Hsing praised Blegen's tenure: "In his ten years as CFO, MPS has grown consistently at an above-market growth rate, while earning the trust of our institutional shareholders" .
What About Capital Returns?
28% dividend increase signals confidence:
Record Date: March 31, 2026
Payment Date: April 15, 2026
The company generated $104.9M in operating cash flow in Q4 and ended with $1.26B in cash and short-term investments .
What Are the Risks?
Management flagged several headwinds in their safe harbor statement :
- China exposure — significant manufacturing capacity and customer base in China
- Tariff/export controls — mentioned "global tariffs, export controls and retaliatory measures" multiple times
- H.R.1 Tax Act — new tax law signed July 4, 2025 could impact effective rates
- Inventory management — 153 days of inventory is elevated, risk of write-downs if demand softens
- Customer concentration — AI/data center customers drive significant growth
Ask Fintool AI AgentKey Takeaways
- Enterprise Data upgraded to 50%+ growth — Management raised 2026 outlook from 30-40% to 50%+ floor; Hsing says "a lot more than that"
- Beat-and-raise quarter — Revenue and EPS topped estimates; Q1 guide 5.6% above Street
- Visibility dramatically improved — Book-to-bill well above 1, backlog extending to Q2/Q3 2026
- Diversification working — Non-enterprise segments grew 40%+ in FY2025; Auto +43%
- 28% dividend hike — Signals confidence in cash generation trajectory
- Product roadmap advancing — 3A/mm² modules shipping; 800V solutions sampling (first to market)