Monolithic Power Posts Record Third-Quarter Revenue of $1,202.4 Million
Key Facts
Monolithic Power Systems reported record revenue of $1,202.4 million in the third quarter of 2026 on Oct. 29, up 22.6% from the previous quarter and 63.1% year over year, according to a company statement. Adjusted earnings of $8.19 per share exceeded the average analyst estimate of $7.71 by $0.48, according to a Reuters report published by Investing.com. Revenue also reached $1.20 billion, ahead of the market estimate of $1.15 billion. Chief Executive and founder Michael Hsing said the company sees "accelerating growth" and that its "diversified growth strategy is paying off." The results highlight the scale of the company's expansion, with record revenue driven by sales of power solutions for artificial intelligence and server applications.
The enterprise data segment was the largest reported growth driver, with revenue of $506.7 million, up 164.6% from the third quarter of 2025. The company said the segment's quarterly revenue rose 33.2% from the second quarter, driven by increased sales of power management solutions for artificial intelligence and server applications. These figures link the company's growth to demand for the infrastructure powering data centers, where AI and server applications require power management solutions. Management said it had seen strong demand from existing customers and expects it to continue through 2027. Hsing said the diversified growth strategy is paying off, pointing to a widening range of growth sources across segments.
Communications revenue rose to $187.4 million, up 134.7% year over year. The company attributed the 42.5% increase from the previous quarter mainly to higher sales of power solutions for optical modules and transceivers. In the automotive segment, revenue increased 19.2% year over year to $180.7 million, and the company said it received its first orders for 48-volt power solutions. These results provide a more detailed picture of the sources of growth, with expansion extending to communications and automotive alongside enterprise data. The company's results were not limited to rising segments, as some other activities declined over the periods cited in its reports.
The company's shares, traded under the ticker MPWR, closed at $1,211.22 on Oct. 28, before the results announcement. After the results were released on Thursday, Oct. 29, the stock rose 2.1% in extended trading, according to the Reuters report. The move followed adjusted earnings and revenue that beat analyst estimates, while the company highlighted rapid growth in enterprise data and communications. The adjusted earnings figure does not include a comparable measure of earnings per share under U.S. accounting rules; the reported beat therefore applies specifically to the adjusted earnings measure.
Operating cash flow was $289.9 million in the third quarter, compared with $239.3 million in the same period of 2025. The company also repurchased $453.4 million of shares during the quarter. In October, the board approved an additional $500 million share repurchase authorization, bringing the current total authorization to $1 billion. These steps accompany revenue growth and show the scale of the share repurchases the company announced during and after the quarter. The statement did not specify an additional timetable for carrying out the new authorization.
Monolithic Power expects revenue of between $1,315 million and $1,385 million in the fourth quarter ending Dec. 31, 2026, according to its guidance released with the results. That range puts next quarter's revenue above the third-quarter record of $1,202.4 million. Management also said it expects strong demand from existing enterprise data customers to continue through 2027. The company expects to have production capacity by the second half of 2027 to support annual revenue of $8 billion. These figures set out the company's outlook for the coming period, with the revenue forecast covering the fourth quarter and the capacity and demand outlook extending through 2027.