Monolithic Power Tops Revenue Estimates at $1.2 Billion as Adjusted EPS Hits $8.19

Monolithic Power Systems (Nasdaq: MPWR) reported third-quarter revenue of $1.2 billion, above the $1.16 billion analysts expected, and adjusted diluted EPS of $8.19 against the $7.75 consensus, in an 8-K filed Thursday, Oct. 29, 2026. Revenue rose 63.1% from $737.2 million a year earlier, and GAAP diluted EPS was $5.51, compared with $3.74 a year earlier.

Enterprise Data Leads Growth

Enterprise Data revenue reached $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. Communications revenue rose 42.5% sequentially to $187.4 million, primarily on optical modules and switches. Automotive revenue was $180.7 million, up 15.0% sequentially.

Margins and Guidance

Non-GAAP gross margin was 55.7%, and non-GAAP operating income was $464.5 million. GAAP operating income was $357.7 million. For the fourth quarter, the company forecasts revenue of $1.315 billion to $1.385 billion and non-GAAP gross margin of 55.5% to 56.1%. Analysts expected fourth-quarter revenue of $1.22 billion and adjusted EPS of $8.16.

Capital Returns and Leadership

The company repurchased $453.4 million of stock in the third quarter, and its board authorized an additional $500 million in October, bringing total authorization to $1 billion. Tony Balow was named Vice President and Chief Financial Officer, and Robert Dean was named Vice President and Chief Accounting Officer, both effective immediately.

CEO Michael Hsing said, "Overall, we see accelerated growth. Our diversified growth strategy is paying off." Capacity surpassed $6 billion in annual revenue support, and the company expects $8 billion by the second half of 2027.