Monolithic Power Systems Q3 Revenue Tops $1 Billion for First Time

Monolithic Power Systems (MPWR ) reported record revenue of $1,202.4 million for the third quarter ended September 30, 2026, a 63.1% increase from the $737.2 million it reported a year earlier and 22.6% above the $980.6 million it reported for the second quarter of 2026. The results were reported after market close on October 29, 2026, and the company said the quarter marked the first time its quarterly revenue exceeded $1 billion, according to its third-quarter 2026 earnings commentary.

GAAP net income was $271.1 million, or $5.51 per diluted share, compared with $257.3 million, or $5.22, in the second quarter of 2026 and $179.8 million, or $3.74, in the third quarter of 2025. Non-GAAP net income was $402.7 million, or $8.19 per diluted share, versus $320.1 million, or $6.50, in the prior quarter and $227.1 million, or $4.73, a year earlier; the non-GAAP tax rate was 15%, flat to the second quarter. GAAP gross margin was 55.4%, 0.2 percentage points higher than the second quarter, while non-GAAP gross margin was 55.7%. GAAP operating income was $357.7 million versus $303.9 million in the second quarter, and non-GAAP operating income was $464.5 million versus $367.7 million. GAAP operating margin was 29.7%.

“Overall, we see accelerated growth. Our diversified growth strategy is paying off,” said Michael Hsing, CEO and founder of MPS.

For the nine months ended September 30, 2026, revenue was $2,987.2 million versus $2,039.3 million in the same period of 2025, and GAAP net income was $721.6 million, or $14.66 per diluted share, versus $449.8 million, or $9.37.

Revenue by End Market

Enterprise Data revenue of $506.7 million rose 33.2% from the second quarter and 164.6% year over year, representing 42.1% of total third-quarter revenue compared with 38.8% in the second quarter. MPS attributed the sequential increase to higher sales of its power management solutions for AI and server applications, and said it saw strong demand across its existing customers that it expects to continue into 2027.

Storage and Computing revenue of $192.2 million decreased 3.8% from the second quarter but rose 3.0% year over year, representing 16.0% of third-quarter revenue versus 20.4% in the prior quarter. Communications revenue of $187.4 million rose 42.5% sequentially and 134.7% year over year, primarily as a result of higher sales of power solutions for optical modules and switches, the company said; the end market represented 15.6% of total revenue versus 13.4% in the second quarter.

Automotive revenue of $180.7 million increased 15.0% from the second quarter and 19.2% year over year, primarily from higher sales of ADAS power solutions, representing 15.0% of total revenue. Industrial revenue of $71.4 million rose 30.2% sequentially and 29.0% year over year, primarily on higher sales for power sources, representing 6.0% of revenue. Consumer revenue of $64.0 million increased 12.6% from the second quarter but fell 11.6% year over year, representing 5.3% of total revenue.

GAAP operating expenses were $307.9 million versus $237.2 million in the second quarter; non-GAAP operating expenses were $205.3 million versus $177.6 million, with the difference between the two measures primarily stock-based compensation and related expenses and deferred compensation plan income or expense. Total stock-based compensation and related expenses, including approximately $3.7 million charged to cost of goods sold, were $106.3 million versus $53.5 million in the prior quarter. Research and development expense was $140.6 million versus $98.2 million a year earlier, and selling, general and administrative expense was $167.3 million versus $112.9 million.

Cash, cash equivalents and short-term investments were $1,091.2 million at the end of the quarter versus $1,413.8 million at the end of the second quarter. Operating cash flow was $289.9 million versus $227.9 million in the prior quarter. Accounts receivable were $461.6 million, representing 35 days of sales outstanding, three days higher than the 32 days at the end of the second quarter. Internal inventories were $764.9 million, up from $675.8 million, with days of inventory of 130 days, 10 days lower than at the end of the prior quarter; measured against next quarter’s projected revenue, days of inventory were 117, two days higher.

MPS repurchased $453.4 million of its stock in the third quarter, compared with $4.0 million in the second quarter. In October 2026, the Board of Directors authorized an additional $500 million for stock repurchases, bringing the total current authorization to $1 billion after the third-quarter repurchases. There were 49.2 million fully diluted shares outstanding at the end of the quarter.

Fourth-Quarter 2026 Outlook

For the fourth quarter ending December 31, 2026, MPS forecast 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%. The company forecast GAAP operating expenses of $334.0 million to $342.0 million and non-GAAP operating expenses of $216.8 million to $220.8 million, with total stock-based compensation and related expenses of $121.0 million to $125.0 million, including approximately $3.8 million to be charged to cost of goods sold. It also forecast interest and other income of $7.8 million to $8.2 million before foreign exchange gains or losses, a non-GAAP tax rate of 15% for 2026, and fully diluted shares outstanding of 48.9 million to 49.3 million.

The company said its capacity surpassed $6 billion in annual revenue support during the quarter, and it expects to have $8 billion of capacity in place by the second half of 2027 on its way to $10 billion. In Automotive, MPS said it received first orders for its 48V power solutions and expects design wins for 48V and Zonal architectures to be a driver of growth in 2027. It said it started ramping robotics solutions with sensor and motor control products across multiple geographies, landed its first large data converter design win, which it expects to ramp in 2027, and began sampling GaN-based solutions for use in 800V data center architectures, complementing its existing SiC-based designs. MPS also said it used its in-house developed AI design tools to significantly expand its customer base in traditional areas and in new applications such as desktop AI designs, and that it continued to increase its SAM with the ramp of its high-speed memory products.

In a separate announcement on October 29, 2026, MPS named Tony Balow as Vice President, Chief Financial Officer and Robert Dean as Vice President, Chief Accounting Officer, effective immediately. Balow served as the company’s Vice President of Finance from September 2023 to October 2026 and previously spent 23 years at Intel in senior positions. Dean served as Interim Chief Financial Officer from February 2026 to October 2026 and as Corporate Controller from June 2016 to February 2026; before joining MPS, he held senior finance and accounting roles at Netflix, Varian and Applied Materials (AMAT ).

“I am very pleased to appoint Tony as our new CFO and Rob as our new CAO,” Hsing said, citing their deep knowledge of MPS’s business operations and their financial acumen.

MPS said it would host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET on October 29, 2026, accessible from the Investor Relations section of its website.