Monolithic Power Systems (MPWR) shares surge 12.2% after beating Q2 earnings expectations and raising guidance for Q3.

Monolithic Power Systems (MPWR) shares surged 12.2% after reporting Q2 results that surpassed expectations and offering an optimistic forecast for Q3. The power solutions company's revenue increased 31% YoY, driven by strong demand across various markets. The company projected Q3 revenue between $710 million and $730 million, exceeding analysts' predictions. This positive outlook prompted investment firms to raise their price targets on the stock, signaling confidence in the company's continued performance.

Title: Monolithic Power Systems (MPWR) Reports Strong Q2 Results, Raises Q3 Revenue Guidance

Monolithic Power Systems (MPWR), a leading manufacturer of power management chips, reported robust second-quarter (Q2) 2025 results, with revenue increasing by 31% year-over-year (YoY) to $664.6 million, exceeding analyst estimates of $652.1 million [1]. The company's adjusted earnings per share (EPS) of $4.21 also surpassed expectations by 2.2%, with non-GAAP operating income of $231.2 million [1].

The company's revenue growth was driven by strong demand across various markets, including Automotive, Storage and Computing, and Communications. For instance, Storage and Computing revenues grew by 70% YoY, while Communications revenues increased by 62.5% [2]. The company's non-GAAP gross margin remained stable at 55.5%, indicating efficient cost management.

Looking ahead, Monolithic Power Systems has provided an optimistic outlook for the third quarter (Q3) 2025, with revenue guidance ranging from $710 million to $730 million, significantly above analyst expectations of $681 million [1]. This positive forecast has prompted several investment firms to raise their price targets on the stock, signaling confidence in the company's continued performance.

The company's strong financial results and positive outlook have led to a 12.2% increase in MPWR's stock price, highlighting investor confidence in the company's growth prospects [1].

References:
[1] https://finance.yahoo.com/news/monolithic-power-systems-nasdaq-mpwr-212848541.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/PINS/pressreleases/33816463/monolithic-power-beats-q2-earnings-estimates-on-record-revenues/