Monolithic Power Systems tops Q3 profit and revenue estimates

Monolithic Power Systems Inc. (MPWR) topped third-quarter profit and revenue estimates on Oct. 29, as quarterly revenue passed $1 billion for the first time.

Shares rose 1.5% in after-hours trading as of 4:38 p.m. ET, from a regular-session close of $1,198.63.

The company said in its results release that revenue was $1,202.4 million in the quarter ended Sept. 30, up 63.1% from a year earlier. GAAP net income was $271.1 million, or $5.51 per diluted share.

Monolithic Power Systems is a fabless global company that provides high-performance, semiconductor-based power electronics solutions.

Here's how the company did:

• Adjusted EPS: $8.19, topping the $7.91 consensus estimate compiled by Finnhub; $4.73 a year earlier.
• Revenue: $1,202.4 million, topping the $1.17 billion consensus estimate compiled by Finnhub; $737.2 million a year earlier.
• GAAP diluted EPS: $5.51 vs. $3.74 a year earlier.
• Non-GAAP operating margin: 38.6% vs. 35.4% a year earlier.

Revenue rose 22.6% from the second quarter. Revenue has risen in each of the last three quarters, from $737.2 million in the third quarter of 2025 to $980.6 million in the second quarter of 2026, according to its SEC filings.

CEO and founder Michael Hsing said in the release: “Overall, we see accelerated growth. Our diversified growth strategy is paying off.”

Segment results

Enterprise Data revenue of $506.7 million rose 33.2% from the second quarter and 164.6% from a year earlier. The company said the increase was driven by higher sales of power management solutions for AI and server applications.

Communications revenue of $187.4 million rose 42.5% from the second quarter, primarily from power solutions for optical modules and switches.

Automotive revenue of $180.7 million rose 15.0% from the second quarter, primarily from ADAS power solutions. Industrial revenue of $71.4 million rose 30.2% sequentially.

Consumer revenue of $64.0 million rose 12.6% from the second quarter but fell 11.6% from a year earlier. Storage and Computing revenue of $192.2 million fell 3.8% from the second quarter.

GAAP gross margin was 55.4%, and non-GAAP gross margin was 55.7%. GAAP operating expenses were $307.9 million, up from $237.2 million in the second quarter. Stock-based compensation and related expenses were $106.3 million, compared with $53.5 million in the second quarter.

Guidance and buybacks

For the fourth quarter of 2026, the company forecast revenue of $1,315 million to $1,385 million. It expects GAAP gross margin of 55.2% to 55.8% and non-GAAP gross margin of 55.5% to 56.1%.

It forecast non-GAAP operating expenses of $216.8 million to $220.8 million and a non-GAAP tax rate of 15% for 2026. It expects 48.9 million to 49.3 million fully diluted shares outstanding.

In October 2026, the board authorized an additional $500 million for stock repurchases, bringing its total current authorization to $1 billion after repurchases made in the third quarter.

The company repurchased $453.4 million of its 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 at the end of the quarter, down from $1,414 million at the end of the second quarter.

Leadership changes

The company also said in an 8-K filing that its board appointed two finance executives on Oct. 27, both effective immediately.

Tony Balow, 56, was named Vice President, Chief Financial Officer. He had been Vice President of Finance since September 2023 and spent 23 years at Intel before joining the company.

Robert Dean, 61, was named Vice President, Chief Accounting Officer. He had served as Interim Chief Financial Officer from February 2026 to October 2026, and as Corporate Controller from June 2016 to February 2026.