Monolithic Power Systems, Inc. MPWR is set to report third-quarter 2026 results on Oct. 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.54%. It pulled off a trailing four-quarter earnings surprise of 4.62%, on average, beating estimates on all occasions.
This Kirkland, WA-based company is expected to have reported higher revenues in the third quarter, supported by strong demand for artificial intelligence (AI) data center power solutions and communications products. The company’s focus on advanced power delivery technologies and expanding its product portfolio is also likely to have contributed to overall growth.
Factors at Play
Monolithic Power Systems is well positioned to capitalize on growing demand for advanced power management solutions in the third quarter of 2026. Enterprise Data is likely to have led performance, driven by rising investments in AI infrastructure and expanding data center capacity. The Communications segment is expected to have benefited from growing demand for advanced networking equipment. Meanwhile, increasing adoption of advanced driver assistance systems and other automotive technologies might have provided further growth opportunities. Its diversified presence across industrial, storage and computing, and consumer markets supports balanced growth and strengthens resilience against fluctuations in individual segments.
The consensus estimate for revenues from the Enterprise Data vertical is pegged at $457.36 million, implying solid growth from $191.48 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $146.51 million, suggesting growth from $79.87 million in the year-ago quarter.
Contribution from the consumer vertical is expected to be $61.65 million, indicating a decline from $72.4 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $56.61 million, suggesting an improvement from the $55.32 million reported in the prior-year quarter.
Revenues from the storage and computing vertical are expected to be $210.55 million, indicating an increase from the prior-year quarter’s tally of $186.57 million. Net sales from the automotive vertical are pegged at $172.42 million, indicating an increase from $151.54 million reported in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $1.16 billion, suggesting an increase from $737.2 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $7.80, implying growth from $4.73 reported in the prior-year quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Monolithic Power for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Monolithic Power carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Other Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Shopify Inc. SHOP has an Earnings ESP of +10.11% and sports a Zacks Rank #1 at present. It is set to release its third-quarter 2026 numbers on Nov. 3.
The Earnings ESP for Twilio Inc. TWLO is +1.71%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 29.
The Earnings ESP for Intel Corporation INTC is +2.22%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 29.
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This article originally published on Zacks Investment Research (zacks.com).