Monolithic Power beats Q2 estimates as Enterprise Data surges 164%

Monolithic Power Systems reported Q2 revenue of $980.6 million, beating consensus by 8.5 percent, as Enterprise Data revenue surged 164.3 percent.

"The favorable estimate revision trend ahead of the release supports a Zacks Rank #2 (Buy) rating for the stock," Zacks Investment Research said.

EPS came in at $6.50, beating the $5.88 consensus by 10.5 percent and up from $4.21 a year earlier. Revenue rose 47.6 percent year over year from $664.6 million. Enterprise Data segment revenue reached $323 million, up from $144 million in the prior-year quarter. Communication segment revenue grew to $127.1 million from $73.8 million, while automotive revenue rose to $155.5 million from $145.1 million. Storage and computing revenue declined to $186.3 million from $195.3 million.

The company guided Q3 sales to $1.14-$1.16 billion, above the $976.9 million consensus, implying continued acceleration in AI infrastructure demand. Shares have gained 37.8 percent year to date, compared with the S&P 500's 6.9 percent advance.

The beat extends a streak of four consecutive quarters of consensus EPS beats, with an average surprise of 2.53 percent over the trailing four quarters. The company has also topped revenue estimates in each of the last four quarters.

Demand for power management ICs used in AI servers, GPUs and accelerator platforms drove the Enterprise Data segment's 164.3 percent surge. Monolithic is also expanding semiconductor content per system, supporting growth beyond shipment volumes. The Communications segment benefited from strong demand for optical modules and AI networking switches with higher power density requirements.

The Industrial segment generated $51.2 million in revenue, up from $46.7 million a year earlier. Storage and computing revenue fell 4.6 percent year over year, partially offset by strength in automotive, which rose 7.2 percent.

For the current fiscal year, consensus EPS stands at $24.18 on revenue of $3.71 billion, with 2027 estimates at $29.85 per share. The Q3 guidance of $1.14-$1.16 billion implies sequential growth of roughly 16 to 18 percent from Q2 levels.

The guidance raise points to sustained AI data center buildout through the second half. Investors will watch the earnings call for updated segment margin commentary and any capacity constraints in the power management supply chain.

This article is for informational purposes only and does not constitute investment advice.