Key Highlights

  • Revenue reached a record $1,202.4 million in the third quarter, up 63.1% from $737.2 million a year earlier.
  • Enterprise Data Revenue climbed 164.6% year over year to $506.7 million.
  • GAAP diluted EPS was $5.51, up 47.3% from $3.74, while non-GAAP diluted EPS was $8.19.
  • The company repurchased $453.4 million of stock in the quarter.
  • Fourth quarter revenue is guided to a range of $1,315 million to $1,385 million.

A record quarter crosses the $1 billion mark for the first time

Monolithic Power Systems (NASDAQ:MPWR) is a fabless semiconductor company that designs high-performance power electronics for cloud computing, communications, automotive, industrial and consumer applications. On October 29, 2026, it reported results for the quarter ended September 30, 2026, and said it had exceeded $1 billion in quarterly revenue for the first time.

Revenue was $1,202.4 million, up 22.6% from $980.6 million in the second quarter and 63.1% from $737.2 million in the third quarter of 2025. CEO Michael Hsing said the company sees accelerated growth.

Enterprise Data and Communications account for most of the surge

Enterprise Data revenue was $506.7 million, up 33.2% from the second quarter and 164.6% from a year earlier, driven by power management solutions for AI and server applications. It represented 42.1% of revenue, compared with 38.8% in the second quarter.

Communications revenue rose 42.5% sequentially to $187.4 million, helped by power solutions for optical modules and switches, and was up 134.7% year over year. Together they made up 57.7% of revenue on a calculated basis.

Automotive revenue was $180.7 million, up 19.2% year over year, on ADAS power solutions. Consumer was $64.0 million, down 11.6% from a year ago, and Storage and Computing was $192.2 million, down 3.8% from the second quarter.

Margins hold steady while Stock Compensation widens the GAAP and non-GAAP gap

GAAP gross Margin was 55.4%, versus 55.1% a year earlier,. GAAP operating expenses rose 29.8% sequentially to $307.9 million, and GAAP Operating Margin was 29.7%, versus 31.0% in the second quarter and 26.5% a year ago.

Stock-based compensation and related expenses were $106.3 million in the quarter, against $53.5 million in the second quarter. That helps explain why GAAP Net Income was $271.1 million while non-GAAP net income was $402.7 million, up 77.3% from $227.1 million.

Buybacks lift cash use as capacity expands and Leadership changes

Cash, cash equivalents and short-term investments were $1,091.2 million at the end of the quarter, down from $1,413.8 million at the end of the second quarter, after $453.4 million of share repurchases versus $4.0 million in the prior quarter. Operating Cash Flow was $289.9 million, and inventories were $764.9 million, equal to 130 days.

In October 2026 the board authorized an additional $500 million for repurchases, bringing the total current authorization to $1 billion. Capacity has passed $6 billion in annual revenue support, with $8 billion expected by the second half of 2027.

On October 27, 2026, the board appointed Tony Balow, previously Vice President of Finance, as Chief Financial Officer, and Robert Dean, the former interim CFO, as Chief Accounting Officer.

Fourth-quarter guide points to further growth

The company forecast fourth quarter revenue of $1,315 million to $1,385 million, above the third quarter level at both ends of the range. It expects non-GAAP gross margin of 55.5% to 56.1%.

Non-GAAP operating expenses are guided to $216.8 million to $220.8 million, and Fully Diluted Shares to 48.9 million to 49.3 million. Management also pointed to first 48V automotive orders, robotics ramps and early sampling of gallium nitride based solutions for 800V Data Center designs as areas to watch.