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Call sheet · Q2'26

Monolithic Power Systems (MPWR)

Q2'26 earnings call · held July 30, 2026 · compared with the Q1'26 call · management-credibility review
5/12
Disclosure score
2 high, 4 medium, 1 low flags
Financial quality
Bottom line
The sleeper story is MPS breaking into a $40-50B building controls TAM while everyone obsesses over AI servers that they suddenly 'can't separate' from CPU revenue (translation: AI is underperforming). The 130% enterprise data growth floor sounds spectacular but it's just burning down existing backlog, and the binding constraint has shifted from silicon capacity to software completion for their new markets. Hsing admitting 'we are still lagging of the software' for building controls and 'we know as much as you know' about 800V timing reveals they're hardware guys struggling with system complexity. My view changes if they provide actual cash flow numbers next quarter and stop hiding behind 'it's difficult to separate' excuses.

The 30-second version

  • DDR5 high-speed interface is the real sleeper: MPS just broke into a $40-50B building controls TAM
  • Enterprise data floor raised to 130% YoY growth, but it's ALL backlog burn, not new demand
  • They stopped breaking out CPU vs AI server revenue and pivoted to 'it's difficult to separate'

What changed this quarter

MetricQ1'26Q2'26Change
Revenue$804M (+26% YoY)$981M (+48% YoY)+22% QoQ acceleration
Enterprise Data Revenue$365M (45% of total)$485M (49% of total)+$120M absolute add in ONE quarter
Enterprise Data Growth Floor85% YoY130% YoY+4500 bps guidance raise
Communications RevenueUp 33% QoQUp 45% QoQ+1200 bps sequential acceleration
Gross Margin55.5%Not disclosedMetric disappeared
Operating Cash FlowNot disclosedNot disclosedStill missing
Free Cash FlowNot disclosedNot disclosedStill missing
Capacity Target$6B near future'Significantly beyond $6B'Vague expansion
Automotive Sockets YTDNot disclosed1,500 new socketsNew disclosure
Stock Buyback Authorization$500M remaining$1B total+$500M new authorization

Accountability tracked

6 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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