Earnings

Monolithic Power Systems Posts Record $1.2 Billion Quarter

The Tip Desk · October 29, 2026 · 3 min read

The fabless power-electronics maker exceeded $1 billion in quarterly sales for the first time, with Enterprise Data at 42.1% of the mix.

Monolithic Power Systems, Inc. (MPWR) posted record third-quarter revenue of $1,202.4 million, up 22.6% from the second quarter and 63.1% from a year earlier, as the fabless power-electronics designer exceeded $1 billion in quarterly sales for the first time.

Enterprise Data remained the growth engine. That end market generated $506.7 million, up 33.2% sequentially on higher sales of power-management solutions for AI and server applications, and accounted for 42.1% of revenue versus 38.8% in the second quarter. The company said it saw strong demand across existing customers that it expects to continue into 2027, and that in-house AI design tools expanded the customer base in traditional areas and in desktop AI designs.

Communications was the next-largest sequential gain. Revenue there was $187.4 million, up 42.5% from the second quarter on higher sales of power solutions for optical modules and switches, and 134.7% higher than a year earlier. Communications represented 15.6% of third-quarter revenue.

Automotive revenue was $180.7 million, up 15.0% sequentially on higher ADAS power-solution sales. Industrial revenue was $71.4 million, up 30.2% on power-source sales. Consumer revenue was $64.0 million. Storage and Computing was the only end market to decline, at $192.2 million, down 3.8% from the second quarter, cutting its share of the mix to 16.0% from 20.4%.

GAAP operating margin compressed 1.3 points to 29.7% from 31.0% as GAAP operating expenses rose 29.8% to $307.9 million, outpacing the revenue increase. GAAP operating income was $357.7 million. GAAP net income was $271.1 million, or $5.51 a share. Non-GAAP operating margin expanded 1.1 points to 38.6% as non-GAAP operating expenses rose 15.6% to $205.3 million; non-GAAP operating income was $464.5 million. Non-GAAP net income was $402.7 million, or $8.19 a share, with the non-GAAP tax rate unchanged at 15%.

Stock-based compensation and related expenses were $106.3 million, including about $3.7 million charged to cost of goods sold. GAAP gross margin was 55.4%; non-GAAP gross margin was 55.7%.

Capacity surpassed $6 billion in annual revenue support. The company said it expects $8 billion of capacity in place by the second half of 2027 on a path to $10 billion. It received first orders for 48-volt automotive power solutions, started ramping robotics sensor and motor-control products, and landed a first large data-converter design win it expects to ramp in 2027. Chief executive Michael Hsing said the company sees accelerated growth.

MPS repurchased $453.4 million of stock in the third quarter, compared with $4.0 million in the second quarter. Cash, cash equivalents and short-term investments were $1,091 million. Operating cash flow was $289.9 million. Accounts receivable were $461.6 million, or 35 days of sales. Internal inventories were $764.9 million, or 130 days against current-quarter revenue.

For the fourth quarter of 2026, MPS forecasts revenue of $1,315 million to $1,385 million, GAAP gross margin of 55.2% to 55.8% and non-GAAP gross margin of 55.5% to 56.1%. GAAP operating expenses are expected at $334.0 million to $342.0 million and non-GAAP operating expenses at $216.8 million to $220.8 million. In October the board authorized an additional $500 million of stock repurchases, bringing total current authorization to $1 billion after third-quarter buybacks.

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