Monolithic Power Systems (MPWR) reported robust financial results for the third quarter of 2025, exceeding expectations across revenue and earnings. The performance fueled a notable increase in investor confidence and lifted the stock price.
- MPWR reported non-GAAP EPS of $3.21, beating estimates of $3.05
- Q3 revenue reached $567 million, up 14% YoY and 5% above consensus
- Gross margin expanded to 64.8%, up from 62.1% in the same quarter last year
- Operating income rose 21% to $218 million
- Stock price surged over 12% in after-hours trading
- Demand strong in industrial, automotive, and computing sectors
Monolithic Power Systems (MPWR) delivered a standout quarter, reporting non-GAAP earnings per share of $3.21, surpassing analyst expectations of $3.05. Revenue reached $567 million, a 14% year-over-year increase and 5% ahead of consensus estimates. The company attributed the growth to strong demand across industrial, automotive, and computing segments, particularly for its high-efficiency power management integrated circuits. The results reflect improved execution and market positioning, with gross margins expanding to 64.8%, up from 62.1% in the prior-year quarter. This margin improvement underscores cost control and favorable product mix. Additionally, the company reported a 21% increase in operating income, reaching $218 million, signaling healthy scalability in its core business. These figures have prompted positive market reactions, with MPWR shares rising over 12% in after-hours trading. Institutional investors have taken note, with several firms upgrading their ratings or adding to positions. The stock’s momentum is also being supported by broader bullish trends in the semiconductor sector, particularly in analog and power management chips. The strong quarter comes amid a period of sector-wide recovery, as global demand for electronics and electric vehicles continues to rebound. MPWR’s ability to maintain high margins and deliver above-consensus results positions it as a leader in its niche, with potential for continued outperformance in the near term.