Monolithic Power Systems, Inc.

NASDAQ Global Select
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Bullish +75

Monolithic Power Systems Reports First Quarter Results on April 30, 2026

📅 Monolithic Power Systems (MPS) reported its first quarter 2026 financial results on April 30, 2026.

💰 Total revenue reached a record $804.2 million, representing a 7.1% quarter-over-quarter increase and a 26.1% year-over-year increase.

📊 GAAP gross margin stood at 55.3%, up 0.1 percentage points sequentially compared to the previous quarter.

💡 Non-GAAP operating margin was 35.8%, with diluted EPS reporting $3.92 on a GAAP basis and $5.10 on a non-GAAP basis.

🔋 Revenue in the Communications sector surged 33.1% sequentially, driven by power solutions for optical modules and switches.

🖥️ Enterprise Data segment revenue grew 12.6% sequentially to $262.8 million, fueled by higher sales for AI and server applications.

💾 Storage & Computing revenue increased 7.6% sequentially to $174.4 million due to higher storage power management solution sales.

🚗 Automotive revenue rose slightly 0.9% sequentially to $152.4 million as ADAS power solutions offset declines in USB solutions.

🏭 Industrial segment revenue decreased 11.2% sequentially to $48.6 million but remained up 14.2% year over year.

📱 Consumer electronics revenue fell 17.5% sequentially to $54.5 million due to lower sales in this specific market.

🚀 MPS expanded its production capacity goals beyond the original $4 billion plan, now aiming for a future target of $6 billion.

⚡ The company sampled its first high-speed DDR5 interface products at major customers, indicating technology advancements.

💼 CEO Michael Hsing highlighted the strength of their diversified market strategy and transformation into a full-service solutions provider.

🌐 MPS continues to adjust to geopolitical and macro-economic environments while maintaining its focus on innovation and customer problems.

Bullish Signals
  • Monolithic Power Systems reported record quarterly revenue of $804.2 million, representing a 7.1% sequential increase and a strong 26.1% year-over-year growth.
  • The company successfully expanded its production capacity, raising its goal from the original $4B plan to reach $6B in the near future to support sustained demand.
  • Revenue in the Communications end market surged 33% sequentially to $111.5 million, driven by strong sales of power solutions for optical modules and switches.
  • Enterprise Data segment revenue jumped 97.7% year over year, reaching a record $262.8 million as higher AI and server application sales boosted results.
  • Sequential operating margin expanded to 30.0% on a GAAP basis and remained flat at a strong 35.8% on a Non-GAAP basis, demonstrating efficient cost management.
  • Diluted EPS increased 12.3% sequentially to $3.92 (GAAP) or 6.5% year-over-year to $5.10 (Non-GAAP), reflecting healthy profitability.
  • The company's pipeline for Automotive and Enterprise Data markets is accelerating, with multiple new projects won across customers and regions.
Risk Factors
  • Consumer revenue declined 17.5% sequentially and 4.2% year over year, representing a significant contraction in this end market.
  • Industrial revenue fell by 11.2% sequentially quarter-over-quarter, indicating weakening demand in the industrial segment.
  • Storage & Computing revenue decreased 7.5% year over year despite sequential growth, highlighting ongoing headwinds in that specific sector.
  • Gross margin contracted to a GAAP rate of 55.3% compared to 55.4% in the prior year period, showing minor pressure on profitability.
  • Non-GAAP Opex increased by $29.8 million sequentially and 7.0% year over year, which may impact future operating leverage as revenue grows slower than costs in some segments.
  • Automotive growth was modest at only 0.9% sequentially, with lower USB solution sales partially offsetting gains in ADAS power solutions.
Full Analysis
Monolithic Power Systems, Inc. (MPS) reported its first quarter results on April 30, 2026, posting record quarterly revenue of $804.2 million. This figure represents a 7.1% increase from the $751.2 million reported in the fourth quarter of 2025 and a significant 26.1% growth compared to the first quarter of 2025, when revenue stood at $637.6 million. Under Generally Accepted Accounting Principles (GAAP), MPS achieved a gross margin of 55.3%, an operating margin of 30.0%, and a net income of $193.2 million on a diluted earnings per share (EPS) of $3.92. On a non-GAAP basis, which adjusts for certain items, the gross margin remained flat at 55.5%, while operating margin increased to 35.8% and net income rose to $251.3 million, yielding a diluted EPS of $5.10. Revenue performance was driven primarily by strength in the Communications and Enterprise Data sectors. The Communications end market saw sequential revenue surge 33.1% to $111.5 million, reaching 55.5% growth year-over-year on the back of demand for power solutions in optical modules and switches. Enterprise Data revenue jumped 97.7% year-over-year to $262.8 million, now comprising over one-third (32.7%) of total revenue, fueled by AI and server applications. However, Consumer revenue declined 17.5% sequentially to $54.5 million due to a cyclical downturn in personal computing demand, while Industrial sales dropped 11.2% sequentially though they remained up 14.2% year-over-year at $48.6 million. Beyond financial metrics, MPS highlighted strategic shifts and capacity expansion. The company is ramping up its manufacturing capacity beyond the original $4 billion plan with a new goal to reach $6 billion in near-future capacity to meet demand growth. Technologically, MPS successfully sampled its first high-speed interface products for DDR5 at major customers and reported accelerating pipelines in both Automotive and Enterprise Data sectors, including server applications. CEO Michael Hsing noted that these results underscore the strength of their diversified market strategy and their transformation from a chip-only supplier to a full-service silicon-based solutions provider capable of adapting to fluid geopolitical and macro-economic environments. A Q&A webinar is scheduled for 2:00 p.m. PT on April 30, 2026, for further details.