Abstract
Monolithic Power will report fourth-quarter results on February 05, 2026, Post Market; our preview compiles the company’s prior-quarter metrics and current-quarter forecasts, pairs them with recent institutional commentary, and frames the likely revenue, margin, net profit, and adjusted EPS trajectory alongside segment highlights.Market Forecast
Consensus for the current quarter anticipates Monolithic Power to deliver revenue of $0.74 billion, with an expected adjusted EPS of $4.72 and EBIT of $0.26 billion; forecast year-over-year growth rates are 21.52% for revenue, 18.79% for EPS, and 19.57% for EBIT. Management’s segmental outlook points to continued momentum in core data-centric and auto markets, with gross margin and net margin expected to remain healthy in the mid-50% and low-to-mid 20% ranges year over year.Enterprise Data and Storage & Computing remain the highlights given broadening content gains and new design ramps, while the most promising segment is Enterprise Data with revenue previously at $0.19 billion and a positive year-over-year trajectory supported by data center build-outs and power management content expansion.
Last Quarter Review
In the previous quarter, Monolithic Power posted revenue of $0.74 billion, a gross profit margin of 55.11%, GAAP net profit attributable to shareholders of $0.18 billion, a net profit margin of 24.18%, and adjusted EPS of $4.73, with revenue and EPS demonstrating solid year-over-year growth.A notable business highlight was broad-based operating leverage that lifted profitability above earlier run-rate expectations alongside sequential recovery across data center and auto programs. Main business contributions were led by Enterprise Data at $0.19 billion, Storage & Computing at $0.19 billion, and Auto at $0.15 billion, while Communications, Consumer, and Industrial contributed $0.08 billion, $0.07 billion, and $0.06 billion, respectively, indicating balanced demand patterns across end markets.
Current Quarter Outlook
Main business: Enterprise data and storage-compute power solutions
Monolithic Power’s main revenue pillars are Enterprise Data and Storage & Computing, which together accounted for $0.38 billion in the prior quarter. For the current quarter, the forecasted revenue of $0.74 billion implies sustained strength in these categories, supported by ongoing content increases tied to higher-power CPUs/GPUs, AI accelerators, and power management complexity in next-generation servers. The company’s product portfolio in multiphase controllers, power stages, and integrated modules should continue to benefit from AI server deployments and memory transitions that elevate power density. On margins, a gross margin profile around the mid-50% range remains consistent with a richer mix of high-value solutions, suggesting the company can translate growth into accretive profitability even as it invests in new platforms.This quarter’s drivers in data-centric segments likely include greater unit shipments of AI-optimized server platforms and incremental wins in power solutions for accelerators, where higher rails and current requirements lift bill-of-materials content per system. The quarter-on-quarter net profit rebound seen previously (net profit growth of 33.31%) underscores demand normalization and favorable mix; carryover into the current quarter should keep EBIT growth tracking close to the forecasted 19.57% year-over-year pace. Supply alignment with leading hyperscalers and server OEMs is another factor that could support stable conversion and yield benefits.
Most promising business: Enterprise Data
Enterprise Data, at $0.19 billion last quarter, is positioned to capture the most incremental growth. The pipeline reflects content expansion in AI nodes where high-current, low-voltage rails and precision control are mission critical, and Monolithic Power’s integrated power stages and digital control solutions can lift attach rates. As hyperscalers refresh infrastructure for AI workloads, systems demand higher efficiency across point-of-load and intermediate stages; this complexity supports a sustained monetization cycle across multiple generations of accelerators and memory.Year-over-year revenue expansion in this segment is supported by adoption of more advanced platforms that elevate dollar content per board. The forecasted company-level revenue growth of 21.52% year over year is consistent with robust Enterprise Data dynamics, though execution will depend on system build schedules and inventory normalization at customers. Pricing and mix may provide modest tailwinds, helping margins remain near the mid-50% level if product mix skews toward high-performance modules. Operating discipline and design-win conversion rates will be in focus as investors assess whether the late-year ramps translate into a stronger run-rate for 2026.
Key stock-price drivers this quarter
The first factor is the magnitude and durability of AI server-related demand. Any signals on order visibility from hyperscalers and top-tier OEMs, as well as commentary on supply-chain stability and lead times, will shape revenue quality perceptions and multiple support. If management solidifies expectations for double-digit year-over-year growth in data-centric end markets, investors could anchor to the top end of the revenue and EPS forecast ranges.The second factor is the auto revenue trajectory. Auto, at $0.15 billion last quarter, remains a strategic vector for secular growth through electrification and ADAS content, but near-term growth can fluctuate with E/E architecture rollouts and destocking cycles. Clarity on new platform ramps and content per vehicle, particularly in high-voltage power and body electronics, will influence how the market calibrates growth beyond the current quarter.
The third factor is margin mix. With gross margin last quarter at 55.11% and net margin at 24.18%, investors will monitor whether product mix and volume can hold margins as operating expenses rise with R&D and go-to-market investments. The forecasted adjusted EPS of $4.72 on revenue of $0.74 billion implies steady operating leverage; any shift in mix toward lower-margin consumer or communications programs could pressure the margin profile, while upside in Enterprise Data could offset such effects.
Analyst Opinions
The balance of institutional commentary in recent months has leaned bullish, citing robust AI-related demand, better-than-expected execution in data-centric markets, and constructive bookings that align with a 21.52% year-over-year revenue growth outlook for the quarter. Firms with an overweight or buy stance emphasize rising content per AI server and accelerating design-win momentum, framing potential upside to the $0.74 billion revenue and $4.72 EPS forecasts if ramp cadence remains intact.Analysts also highlight the positive surprise in the prior quarter, where revenue of $0.74 billion and adjusted EPS of $4.73 exceeded earlier estimates, reinforcing confidence in operational discipline and mix quality. The majority view expects sequential stability with year-over-year acceleration, and points to the Enterprise Data and Auto segments as medium-term growth anchors. Commentary flags watchpoints around customer inventory adjustments and the timing of AI server builds, but consensus expects the company to navigate these variables while maintaining gross margin around the mid-50% zone and net margin near the mid-20% range.
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