Monolithic Power Systems Inc (NASDAQ:MPWR) Reports Q3 2025 Earnings Beat and Upbeat Guidance Despite Stock Slide

Earnings Overview

Monolithic Power Systems Inc (NASDAQ:MPWR) reported financial results for the third quarter ended September 30, 2025, delivering a performance that narrowly surpassed analyst expectations on key profitability and sales metrics. The company, a provider of high-performance, semiconductor-based power electronics solutions, announced the figures after market close on October 30, 2025.

Q3 Performance Versus Estimates

The company's third-quarter results demonstrated modest outperformance relative to Wall Street's forecasts. The top and bottom-line figures came in slightly ahead of consensus estimates, though the beats were marginal.

• Revenue: Reported revenue of $737.2 million, representing an 18.9% year-over-year increase. This figure edged out the analyst consensus estimate of approximately $736.7 million.
• Earnings Per Share (Non-GAAP): Posted EPS of $4.73, which was 2.2% above the analyst estimate of $4.73.

While the company exceeded expectations, the magnitude of the beat was relatively small. The market's primary focus appears to have shifted from the historical results to the company's forward-looking statements and the broader context of its valuation.

Forward Guidance and Market Reaction

A key positive from the earnings release was the company's provided outlook for the upcoming quarter. Management issued revenue guidance with a midpoint of $740 million for Q4 2025. This outlook is approximately 2% above the current analyst sales estimate of $739.72 million for the quarter, indicating management's confidence in continued demand.

Despite this optimistic guidance and the earnings beat, the stock faced significant selling pressure in after-hours trading, declining over 6%. This negative reaction suggests that investors may have been anticipating even stronger results or are concerned about other factors not fully captured in the headline numbers. It is also possible that the stock's recent strong performance—with gains of nearly 20% over the past month—had already priced in a robust earnings report, leading to a "sell the news" event.

Press Release Summary

The core announcement from Monolithic Power Systems confirmed the reporting of its Q3 2025 financial results. The company highlighted its position as a fabless global semiconductor company specializing in power electronics solutions. The press release serves as the official channel for disclosing the revenue of $737.2 million and non-GAAP EPS of $4.73, framing the company's performance for the quarter. The subsequent earnings commentary provided further detail on the results and the basis for the company's forward-looking guidance.

For a more detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data available here: MPWR Earnings & Estimates.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis does not constitute a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.