Monolithic Power Systems Reports Third Quarter Results on October 29, 2026
Operating cash flow increased to $289.9 million as quarterly stock repurchases reached $453.4 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Monolithic Power Systems (MPWR) reported third-quarter 2026 revenue of $1,202.4 million, its first quarter above $1 billion in sales. Revenue rose 22.6% sequentially and 63.1% year over year. GAAP diluted earnings were $5.51 per share, up 47.3% year over year, while operating margin fell sequentially to 29.7% from 31.0%. Enterprise Data revenue rose 164.6% year over year to $506.7 million.
MPS forecasts fourth-quarter revenue of $1,315 million to $1,385 million and GAAP gross margin of 55.2% to 55.8%. It repurchased $453.4 million of stock during the quarter; an additional October authorization brought current repurchase authority to $1 billion. Cash, cash equivalents and short-term investments fell to $1,091.2 million from $1,413.8 million sequentially. Annual revenue-supporting capacity surpassed $6 billion; MPS expects $8 billion of capacity by the second half of 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 2026 revenue reached $1,202.4 million, up 22.6% sequentially and 63.1% year over year.
- Moderate pointQ3 GAAP diluted EPS reached $5.51, up 5.6% sequentially and 47.3% year over year.
- Moderate pointQ3 operating cash flow increased to $289.9 million from $227.9 million sequentially and $239.3 million year over year.
- Moderate pointQ3 stock repurchases reached $453.4 million, compared with $4.0 million in Q2 2026.
- Moderate pointOctober authorization added $500 million for repurchases, bringing current authority to $1 billion after Q3 repurchases.
- Moderate point. Forward-looking: it has not happened yet and may not happen.MPS forecasts Q4 2026 revenue of $1,315 million to $1,385 million.
15 minor points
- Minor pointQ3 GAAP net income reached $271.1 million, up 5.4% sequentially and 50.8% year over year.
- Minor pointQ3 GAAP gross margin reached 55.4%, up 0.2 percentage points sequentially and 0.3 points year over year.
- Minor pointQ3 GAAP operating income increased to $357.7 million from $303.9 million in Q2 2026.
- Minor pointEnterprise Data Q3 revenue reached $506.7 million, up 33.2% sequentially and 164.6% year over year.
- Minor pointCommunications Q3 revenue reached $187.4 million, up 42.5% sequentially and 134.7% year over year.
- Minor pointAutomotive Q3 revenue reached $180.7 million, up 15.0% sequentially and 19.2% year over year.
- Minor pointIndustrial Q3 revenue reached $71.4 million, up 30.2% sequentially and 29.0% year over year.
- Minor point. Forward-looking: it has not happened yet and may not happen.Annual revenue-supporting capacity surpassed $6 billion; MPS expects $8 billion by the second half of 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.MPS expects Enterprise Data customer demand to continue into 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.Automotive received first orders for 48V power solutions; MPS expects related architecture design wins to drive 2027 growth.
- Minor pointRobotics solutions began ramping across multiple geographies with sensor and motor control products.
- Minor point. Forward-looking: it has not happened yet and may not happen.MPS secured its first large data converter design win, which it expects to ramp in 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.MPS forecasts Q4 2026 GAAP gross margin of 55.2% to 55.8%.
- Minor point. Forward-looking: it has not happened yet and may not happen.MPS forecasts Q4 interest and other income of $7.8 million to $8.2 million, before foreign-exchange gains or losses.
- Minor pointQ3 inventory days based on current-quarter revenue fell to 130 days, from 140 sequentially and 139 year over year.
Negative
- Moderate pointQ3 GAAP operating expenses rose to $307.9 million, up 29.8% sequentially and 45.9% year over year.
- Moderate pointQ3 cash, cash equivalents and short-term investments fell to $1,091.2 million from $1,413.8 million sequentially.
- Minor pointQ3 GAAP operating margin was 29.7%, down 1.3 percentage points sequentially but up 3.2 points year over year.
- Minor pointStorage & Computing Q3 revenue was $192.2 million, down 3.8% sequentially but up 3.0% year over year.
- Minor pointConsumer Q3 revenue was $64.0 million, down 11.6% year over year but up 12.6% sequentially.
5 minor points
- Minor pointQ3 accounts receivable rose to $461.6 million from $343.6 million sequentially and $241.6 million year over year.
- Minor pointQ3 days sales outstanding increased to 35 days, from 32 sequentially and 30 year over year.
- Minor pointQ3 internal inventories increased to $764.9 million, from $675.8 million sequentially and $505.7 million year over year.
- Minor pointQ3 inventory days using next-quarter projected revenue reached 117 days, up two sequentially but below 137 year over year.
- Minor point. Forward-looking: it has not happened yet and may not happen.MPS forecasts Q4 2026 GAAP operating expenses of $334.0 million to $342.0 million.
Details
Market Reaction – MPWR
On Oct 29, the day this news came out, the latest delayed price for MPWR is 2.56% above the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $1229.45.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Revenue
- $1,202.4 million; +63.1% YoY
- Q3 2026
- GAAP diluted EPS
- $5.51
- Q3 2026
- Non-GAAP diluted EPS
- $8.19
- Q3 2026
- Revenue forecast
- $1,315 million to $1,385 million
- Q4 2026
- GAAP gross margin forecast
- 55.2% to 55.8%
- Q4 2026
- Non-GAAP gross margin forecast
- 55.5% to 56.1%
- Q4 2026
- Stock repurchases
- $453.4 million
- Q3 2026
- Stock repurchase authorization
- $500 million additional; $1 billion total current authorization
- Authorized in October 2026
Previous Earnings Reports
-
Reported Q2 2026 revenue of $980.6 million and a Q3 revenue forecast of $1.14–$1.16 billion.
-
Reported Q3 2025 revenue of $737.2 million and GAAP diluted EPS of $3.71.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
stock-based compensation financial
days of sales outstanding financial
sic technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
SCHAFFHAUSEN, Switzerland, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) reported its results after market close on October 29, 2026 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The webinar can be accessed from the Investor Relations section of the MPS website at www.monolithicpower.com.
| Q3 2026 Financial Summary | (Unaudited) |
| GAAP | ||||||||||
| Q3'26 | Q2'26 | Q3'25 | QoQ Change | YoY Change | ||||||
| Revenue ($M) | ||||||||||
| Gross Margin | 0.2 pts | 0.3 pts | ||||||||
| Opex ($M) | ||||||||||
| Operating Margin | (1.3) pts | 3.2 pts | ||||||||
| Net income ($M) | ||||||||||
| Diluted EPS | ||||||||||
| Non-GAAP | ||||||||||
| Q3'26 | Q2'26 | Q3'25 | QoQ Change | YoY Change | ||||||
| Revenue ($M) | ||||||||||
| Gross Margin | 0.1 pts | 0.2 pts | ||||||||
| Opex ($M) | ||||||||||
| Operating Margin | 1.1 pts | 3.2 pts | ||||||||
| Net income ($M) | ||||||||||
| Diluted EPS | ||||||||||
| Tax Rate | Flat | Flat | ||||||||
| Revenue by End Market | ||||||||||||||
| Revenue | % Change | % of Revenue | ||||||||||||
| End Market ($M) | Q3'26 | Q2'26 | Q3'25 | QoQ | YoY | Q3'26 | Q2'26 | |||||||
| Enterprise Data | ||||||||||||||
| Storage & Computing | 192.2 | 199.8 | 186.6 | ( | 16.0 | 20.4 | ||||||||
| Communications | 187.4 | 131.5 | 79.9 | 15.6 | 13.4 | |||||||||
| Automotive | 180.7 | 157.1 | 151.5 | 15.0 | 16.0 | |||||||||
| Industrial | 71.4 | 54.8 | 55.3 | 6.0 | 5.6 | |||||||||
| Consumer | 64.0 | 56.8 | 72.4 | ( | 5.3 | 5.8 | ||||||||
| Total | ||||||||||||||
Ongoing Business Conditions
In Q3, MPS achieved another significant milestone exceeding
During the quarter:
- Our capacity surpassed
$6 billion dollars in annual revenue support. We expect to have$8 billion of capacity in place by the second half of 2027 on our way to$10 billion in support of our rapidly expanding business.
In our enterprise data end market:
- We saw strong demand across our existing customers which we expect to continue into 2027.
- In addition, using our in-house developed AI design tools we significantly expanded our customer base in traditional areas, as well as in new applications such as desktop AI designs.
In addition to our rapid Enterprise Data growth:
- In Automotive, we received first orders for our 48V power solutions and expect design wins for 48V and Zonal architectures to be a driver of growth in 2027.
- We started ramping robotics solutions with sensor and motor control products across multiple geographies.
- We landed our first large data converter design win which we expect to ramp 2027.
- We continued to increase our SAM with the ramp of our high speed memory products.
- We continued to build out our high voltage portfolio and began sampling GAN based solutions for use in 800V data center architectures complementing our existing SiC based designs.
Our diversified market strategy remains unchanged:
- MPS focuses on innovation and solving our customers’ most challenging problems.
- We consistently invest in new technologies that open new end markets and applications.
- We continue to transform from a chip-only semiconductor supplier to a full service solution provider.
- We continuously expand and diversify our global supply chain allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.
“Overall, we see accelerated growth. Our diversified growth strategy is paying off,” said Michael Hsing, CEO and founder of MPS.
Q3 2026 Revenue Results
We had record revenue of
In our Communications end market, third quarter revenue of
Third quarter Enterprise Data revenue of
Third quarter Industrial revenue of
Third quarter Automotive revenue of
Third quarter Consumer revenue of
Third quarter Storage and Computing revenue of
Q3 2026 Gross Margin & Operating Income
GAAP gross margin was
Non-GAAP gross margin for the third quarter of 2026 was
Q3 2026 Operating Expenses
GAAP operating expenses were
The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income (expense).
Total stock-based compensation and related expenses, including approximately
The Bottom Line
Third quarter 2026 GAAP net income was
Third quarter 2026 non-GAAP net income was
Third quarter 2026 non-GAAP tax rate of
There were 49.2 million fully diluted shares outstanding at the end of the third quarter of 2026.
We repurchased
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments were
Accounts receivable at the end of the third quarter of 2026 were
Our internal inventories at the end of the third quarter of 2026 were
Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the third quarter of 117 days was 2 days higher than at the end of the second quarter of 2026.
| Selected Balance Sheet and Inventory Data | (Unaudited) | |||||
| Q3'26 | Q2'26 | Q3'25 | ||||
| Cash, Cash Equivalents, and Short-Term Investments | ||||||
| Operating Cash Flow | ||||||
| Accounts Receivable | ||||||
| Days of Sales Outstanding | 35 Days | 32 Days | 30 Days | |||
| Internal Inventories | ||||||
| Days of Inventory (current quarter revenue) | 130 Days | 140 Days | 139 Days | |||
| Days of Inventory (next quarter revenue) | 117 Days | 115 Days | 137 Days | |||
Q4 2026 Business Outlook
For the fourth quarter of 2026 ending December 31, we are forecasting:
- Revenue in the range of
$1,315 million to$1,385 million . - GAAP gross margin in the range of
55.2% to55.8% . - Non-GAAP gross margin in the range of
55.5% to56.1% , which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets. - Total stock-based compensation and related expenses in the range of
$121.0 million to$125.0 million including approximately$3.8 million that would be charged to cost of goods sold. - GAAP operating expenses between
$334.0 million and$342.0 million . - Non-GAAP operating expenses in the range of
$216.8 million to$220.8 million . This estimate excludes stock-based compensation and related expenses in the range of$117.2 million to$121.2 million . - Interest and other income in the range from
$7.8 million to$8.2 million before foreign exchange gains or losses. - Non-GAAP tax rate of
15% for 2026. - Fully diluted shares outstanding in the range of 48.9 to 49.3 million shares.
Furthermore, in October 2026, our Board of Directors authorized an additional
For further information, contact:
Tony Balow
Vice President, Chief Financial Officer
Monolithic Power Systems, Inc.
MPSInvestor.Relations@monolithicpower.com
Safe Harbor Statement
This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q4 2026 Business Outlook” section herein, the quote from our Chief Executive Officer regarding our growth and success of our business strategy, our statements regarding our business focus, expected capacity growth and the timing thereof, expected strong demand across our existing customers into 2027, expected design wins as a driver of growth for our Automotive end market in 2027, increasing sales of robotic solutions across multiple geographies, increasing sales of large data converters in 2027, the continued increase in our SAM through increasing sales of our high speed memory products, the build out of our high voltage portfolio and GAN based solutions, investments in new technologies that open new end markets and applications, and the expansion and diversification of our supply chain to allow us to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the fourth quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our goal to expand our capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described above. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential global conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential global conflicts; the Company’s ability to timely and adequately remediate its material weakness; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 27, 2026. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.
Non-GAAP Financial Measures
This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, amortization of acquisition-related intangible assets, net deferred compensation plan expense, and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.
About Monolithic Power Systems
MPS is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.
Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.
| Monolithic Power Systems, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value) | ||||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 560,544 | $ | 1,099,302 | ||||
| Short-term investments | 530,690 | 157,243 | ||||||
| Accounts receivable, net | 461,633 | 255,626 | ||||||
| Inventories | 764,879 | 564,649 | ||||||
| Other current assets | 54,024 | 106,982 | ||||||
| Total current assets | 2,371,770 | 2,183,802 | ||||||
| Property and equipment, net | 821,573 | 627,689 | ||||||
| Acquisition-related intangible assets, net | 7,929 | 8,790 | ||||||
| Goodwill | 25,944 | 25,944 | ||||||
| Deferred tax assets, net | 1,183,003 | 1,182,883 | ||||||
| Other long-term assets | 262,362 | 165,091 | ||||||
| Total assets | $ | 4,672,581 | $ | 4,194,199 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 236,469 | $ | 138,272 | ||||
| Accrued compensation and related benefits | 136,528 | 85,963 | ||||||
| Other accrued liabilities | 267,657 | 145,130 | ||||||
| Total current liabilities | 640,654 | 369,365 | ||||||
| Income tax liabilities | 75,022 | 75,022 | ||||||
| Deferred tax liabilities | 90,316 | 90,480 | ||||||
| Other long-term liabilities | 132,849 | 127,835 | ||||||
| Total liabilities | 938,841 | 662,702 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital: | 690,429 | 936,998 | ||||||
| Retained earnings | 3,034,058 | 2,609,651 | ||||||
| Accumulated other comprehensive income (loss) | 9,253 | (15,152 | ) | |||||
| Total stockholders’ equity | 3,733,740 | 3,531,497 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,672,581 | $ | 4,194,199 | ||||
| Monolithic Power Systems, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 1,202,409 | $ | 737,176 | $ | 2,987,236 | $ | 2,039,304 | |||||||
| Cost of revenue | 536,870 | 330,948 | 1,335,562 | 913,830 | |||||||||||
| Gross profit | 665,539 | 406,228 | 1,651,674 | 1,125,474 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 140,581 | 98,173 | 359,765 | 286,666 | |||||||||||
| Selling, general and administrative | 167,271 | 112,872 | 389,176 | 310,108 | |||||||||||
| Total operating expenses | 307,852 | 211,045 | 748,941 | 596,774 | |||||||||||
| Operating income | 357,687 | 195,183 | 902,733 | 528,700 | |||||||||||
| Other income, net | 8,936 | 10,392 | 32,801 | 27,743 | |||||||||||
| Income before income taxes | 366,623 | 205,575 | 935,534 | 556,443 | |||||||||||
| Income tax expense | 95,556 | 25,809 | 213,943 | 106,616 | |||||||||||
| Net income | $ | 271,067 | $ | 179,766 | $ | 721,591 | $ | 449,827 | |||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 5.53 | $ | 3.75 | $ | 14.70 | $ | 9.40 | |||||||
| Diluted | $ | 5.51 | $ | 3.74 | $ | 14.66 | $ | 9.37 | |||||||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic | 49,052 | 47,898 | 49,097 | 47,879 | |||||||||||
| Diluted | 49,184 | 48,042 | 49,230 | 48,022 | |||||||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME (Unaudited, in thousands, except per share amounts) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Net income | $ | 271,067 | $ | 179,766 | $ | 721,591 | $ | 449,827 | |||||||||
| Adjustments to reconcile net income to non-GAAP net income: | |||||||||||||||||
| Stock-based compensation and related expenses | 106,288 | 60,875 | 208,375 | 174,966 | |||||||||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | 960 | 960 | |||||||||||||
| Deferred compensation plan expense, net | 544 | 423 | 1,129 | 698 | |||||||||||||
| Tax effect | 24,489 | (14,270 | ) | 42,043 | (3,344 | ) | |||||||||||
| Non-GAAP net income | $ | 402,708 | $ | 227,114 | $ | 974,098 | $ | 623,107 | |||||||||
| Non-GAAP net income per share: | |||||||||||||||||
| Basic | $ | 8.21 | $ | 4.74 | $ | 19.84 | $ | 13.01 | |||||||||
| Diluted | $ | 8.19 | $ | 4.73 | $ | 19.79 | $ | 12.98 | |||||||||
| Shares used in the calculation of non-GAAP net income per share: | |||||||||||||||||
| Basic | 49,052 | 47,898 | 49,097 | 47,879 | |||||||||||||
| Diluted | 49,184 | 48,042 | 49,230 | 48,022 | |||||||||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited, in thousands) | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Gross profit | $ | 665,539 | $ | 406,228 | $ | 1,651,674 | $ | 1,125,474 | |||||||||||
| Gross margin | 55.4 | % | 55.1 | % | 55.3 | % | 55.2 | % | |||||||||||
| Adjustments to reconcile gross profit to non-GAAP gross profit: | |||||||||||||||||||
| Stock-based compensation and related expenses | 3,702 | 1,917 | 7,151 | 5,538 | |||||||||||||||
| Amortization of acquisition-related intangible assets | 287 | 287 | 861 | 861 | |||||||||||||||
| Deferred compensation plan expense | 261 | 500 | 1,731 | 942 | |||||||||||||||
| Non-GAAP gross profit | $ | 669,790 | $ | 408,932 | $ | 1,661,418 | $ | 1,132,815 | |||||||||||
| Non-GAAP gross margin | 55.7 | % | 55.5 | % | 55.6 | % | 55.5 | % | |||||||||||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total operating expenses | $ | 307,852 | $ | 211,045 | $ | 748,941 | $ | 596,774 | |||||||
| Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: | |||||||||||||||
| Stock-based compensation and related expenses | (102,586 | ) | (58,958 | ) | (201,224 | ) | (169,428 | ) | |||||||
| Amortization of acquisition-related intangible assets | (33 | ) | (33 | ) | (99 | ) | (99 | ) | |||||||
| Deferred compensation plan income (expense) | 72 | (3,715 | ) | (6,386 | ) | (7,778 | ) | ||||||||
| Non-GAAP operating expenses | $ | 205,306 | $ | 148,339 | $ | 541,233 | $ | 419,469 | |||||||
| RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME (Unaudited, in thousands) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total operating income | $ | 357,687 | $ | 195,183 | $ | 902,733 | $ | 528,700 | |||||||
| Adjustments to reconcile total operating income to non-GAAP total operating income: | |||||||||||||||
| Stock-based compensation and related expenses | 106,288 | 60,875 | 208,375 | 174,966 | |||||||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | 960 | 960 | |||||||||||
| Deferred compensation plan expense | 189 | 4,215 | 8,117 | 8,720 | |||||||||||
| Non-GAAP operating income | $ | 464,484 | $ | 260,593 | $ | 1,120,185 | $ | 713,346 | |||||||
| RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET (Unaudited, in thousands) | ||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Total other income, net | $ | 8,936 | $ | 10,392 | $ | 32,801 | $ | 27,743 | ||||||||||
| Adjustments to reconcile other income, net to non-GAAP other income, net: | ||||||||||||||||||
| Deferred compensation plan expense (income) | 355 | (3,792 | ) | (6,988 | ) | (8,022 | ) | |||||||||||
| Non-GAAP other income, net | $ | 9,291 | $ | 6,600 | $ | 25,813 | $ | 19,721 | ||||||||||
| RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES (Unaudited, in thousands) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total income before income taxes | $ | 366,623 | $ | 205,575 | $ | 935,534 | $ | 556,443 | |||||||
| Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: | |||||||||||||||
| Stock-based compensation and related expenses | 106,288 | 60,875 | 208,375 | 174,966 | |||||||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | 960 | 960 | |||||||||||
| Deferred compensation plan expense, net | 544 | 423 | 1,129 | 698 | |||||||||||
| Non-GAAP income before income taxes | $ | 473,775 | $ | 267,193 | $ | 1,145,998 | $ | 733,067 | |||||||
| 2026 FOURTH QUARTER OUTLOOK RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited) | |||||||
| Three Months Ending | |||||||
| December 31, 2026 | |||||||
| Low | High | ||||||
| Gross margin | 55.2 | % | 55.8 | % | |||
| Adjustment to reconcile gross margin to non-GAAP gross margin: | |||||||
| Stock-based compensation and other expenses | 0.3 | 0.3 | |||||
| Non-GAAP gross margin | 55.5 | % | 56.1 | % | |||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands) | |||||||
| Three Months Ending | |||||||
| December 31, 2026 | |||||||
| Low | High | ||||||
| Operating expenses | $ | 334,000 | $ | 342,000 | |||
| Adjustments to reconcile operating expenses to non-GAAP operating expenses: | |||||||
| Stock-based compensation and other expenses | (117,200 | ) | (121,200 | ) | |||
| Non-GAAP operating expenses | $ | 216,800 | $ | 220,800 | |||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Monolithic Power Systems' Q3 2026 revenue and earnings?
Monolithic Power Systems reported Q3 2026 revenue of $1,202.4 million and GAAP diluted earnings of $5.51 per share. Revenue increased 63.1% year over year, while diluted earnings increased 47.3%. GAAP net income was $271.1 million, up 50.8% year over year.
What is MPWR's fourth-quarter 2026 revenue outlook?
MPS forecasts fourth-quarter 2026 revenue of $1,315 million to $1,385 million for the quarter ending December 31. Its GAAP gross-margin outlook is 55.2% to 55.8%, with GAAP operating expenses between $334.0 million and $342.0 million.