Monolithic Power Posts Record Revenue of $1,202.4 Million on Strong Enterprise Data Growth
Key Facts
Monolithic Power Systems reported record revenue of $1,202.4 million in the third quarter of 2026 on October 29, up 22.6% from the previous quarter and 63.1% year over year, according to results released through Nasdaq. Net income under U.S. GAAP was $271.1 million, or $5.51 per diluted share, while adjusted net income was $402.7 million, or $8.19 per share. Adjusted earnings per share exceeded the consensus estimate of $7.71 by $0.48, while revenue of $1.20 billion topped analysts’ estimate of $1.15 billion, according to Investing.com coverage attributed to Reuters. Chief Executive and founder Michael Hsing said the company was seeing “accelerating growth” and that “our diversified growth strategy is paying off.” Growth was spread across the company’s segments, led by enterprise data, communications and automotive, alongside declines in some other businesses.
Enterprise data led the company’s segments, with third-quarter revenue of $506.7 million, up 164.6% from the same period last year and 33.2% from the second quarter. The segment accounted for 42.1% of quarterly revenue, according to the results table published by the company. Management said demand from its existing customers in the segment was strong and expected it to continue through 2027. The company also expanded its customer base through internal design tools, including artificial intelligence applications aimed at desktop design. These indicators place enterprise data growth among the leading drivers of results, with demand extending to both existing and new applications.
Communications revenue rose to $187.4 million, up 134.7% year over year and 42.5% from the previous quarter. The company attributed the quarterly increase mainly to higher sales of power solutions for optical modules and switches. In automotive, revenue was $180.7 million, up 19.2% year over year and 15.0% quarter over quarter. The company said it had received its first orders for 48-volt power solutions and expected 48-volt designs and zonal architectures to support segment growth in 2027. The industrial segment posted revenue of $71.4 million, up 29.0% year over year and 30.2% quarter over quarter; the company attributed its quarterly growth mainly to higher sales of power supplies.
Other businesses had mixed results: storage and computing revenue was $192.2 million, up 3.0% from the third quarter of 2025 but down 3.8% from the second quarter of 2026. The consumer segment posted revenue of $64.0 million, down 11.6% year over year. Gross margin was 55.4% under U.S. GAAP and 55.7% on an adjusted basis. Meanwhile, operating expenses under GAAP rose to $307.9 million, compared with $237.2 million in the previous quarter. The figures reflect variation across segments in a quarter in which the company posted record total revenue.
Operating cash flow was $289.9 million in the third quarter, compared with $227.9 million in the second quarter and $239.3 million in the third quarter of 2025. The company repurchased $453.4 million of shares during the quarter, compared with $4.0 million in the previous period. In October, the board approved an additional $500 million buyback authorization, bringing the current total authorization to $1 billion. The company also announced the appointment of Tony Balo as chief financial officer and Robert Dean as chief accounting officer, effective immediately; Balo had been vice president of finance and Dean acting chief financial officer. Investing.com coverage reported that the stock fell 1.02% in regular trading on October 29, then declined 2.63% after the close to $1,167.28, despite beating earnings and revenue estimates.
For the fourth quarter ending December 31, 2026, the company forecast revenue of $1,315 million to $1,385 million, according to its guidance released with the results. This comes as management expects strong demand from existing enterprise data customers to continue through 2027. The company said its production capacity had exceeded a level supporting $6 billion in annual revenue. It expects to have capacity supporting $8 billion in annual revenue by the second half of 2027, with a path to $10 billion to support business expansion. The company had announced that third-quarter results would be released after the market close on October 29 and scheduled its webcast for 2:00 p.m. Pacific time, or 5:00 p.m. Eastern time, on the same day.