Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
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MPWR's record quarter and raised enterprise data growth floor to 130% underscore the accelerating power-content demand from AI data center buildouts. The company's expansion into 800-volt architectures, high-speed DDR5 memory interfaces, and continued strength in optical modules and switches position it to capture more of the AI infrastructure power chain. Capacity expansion beyond $6 billion signals sustained multi-year demand for AI server and networking power solutions.
MPS delivered record Q2 revenue of $981 million, up 22% sequentially and 48% year-over-year, with all end markets growing sequentially. Enterprise data grew 45% sequentially, and communications grew strongly on optical modules and switches. The company received initial orders for high-speed DDR5 memory interface products and began sampling high-voltage AC-to-DC products for 800-volt data center architectures. Automotive shipped over 1,500 new sockets year-to-date. The company raised its FY2026 enterprise data growth floor to 130%.
Management raised the FY2026 enterprise data growth floor from 85% to 130% year-over-year, citing sustained strong ordering patterns and low channel inventory. They expect the second half to be led by data-centric businesses (enterprise data and communications), with automotive ramping in the second half and landing in the mid-teens year-over-year. Consumer and notebook remain cautious areas. Capacity expansion is being extended beyond $6 billion, with a focus on both front-end and back-end (module assembly) capabilities. Management also announced an additional $500 million stock repurchase authorization, bringing total authorization to $1 billion.
“We extended our capacity goals significantly beyond $6 billion to support future revenue growth and our transformation into a full solution provider.”
on Capacity expansion
“We are the highest-power-density company in the world now.”
on Competitive positioning
“We never gouges prices when the supply chain is tight. And we want to build a consistent model where we execute consistently within our models.”
on Pricing strategy
Is the communications growth mostly transceiver power, or are you seeing meaningful contribution from switches, DPUs, SmartNICs? How does the second half set up?
Growth is coming from both optical modules and the 'switches' bucket (including top-of-rack switches, TPUs, NIC cards). Optical is still the larger portion due to longer runway, but both are driving comms growth.
You gained nearly $120 million in the data segment in one quarter. Can you speak to confidence that there is no inventory building and overall visibility?
Channel inventory remains very low, and book-to-bill was well above 1. Management raised the FY2026 enterprise data growth floor from 85% to 130% based on visibility. They also noted no concentrated customers in enterprise data.
Did pricing meaningfully influence the sequential growth or the Q3 outlook?
No, pricing was not a driver. MPS maintains consistent pricing, only raising prices in specific cases like input cost increases, expedites, or requests for non-China supply chains. Growth is volume-driven.