MPWR · Monolithic Power Systems, Inc.

Monolithic Power Systems delivered record Q1 2026 revenue of $804.2 million, surpassing prior quarter by 7.1% and prior year by 26.1%, fueled by robust demand across key end markets. Communications revenue surged 33.1% sequentially to $111.5 million (13.9% of total), driven by power solutions for optical modules and switches, while Enterprise Data grew 12.6% to $262.8 million (32.7% of total) on higher AI and server application sales, marking 97.7% YoY growth. Storage & Computing rose 7.6% to $174.4 million, Automotive edged up 0.9% to $152.4 million, offsetting declines in Consumer (down 17.5%) and Industrial (down 11.2%). GAAP gross margin expanded slightly to 55.3% with operating income at $241.2 million (30.0% margin), bolstered by 4.9% lower opex at $203.9 million versus prior quarter, primarily from reduced stock-based compensation of $48.5 million. Non-GAAP metrics showed stable 55.5% gross margin and 35.8% operating margin, with net income of $251.3 million and diluted EPS $5.10. Balance sheet strengthened with cash equivalents at $1,367.1 million and operating cash flow of $250.3 million, though inventories rose to $619.2 million (157 DOI on current revenue). Management highlighted innovation, diversified strategy, and capacity expansion to $6B target, with accelerating pipelines in Automotive and Enterprise Data. Q2 guidance projects revenue acceleration to $890-910 million, GAAP gross margin 55.1-55.7%, non-GAAP opex $167-171 million, signaling sustained momentum amid geopolitical adjustments.