Monolithic Power Systems (MPWR) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $804.2 million, up 7.1% sequentially and 26.1% year-over-year, driven by innovation, diversified market strategy, and strong performance in Communications and Enterprise Data.

• Net income rose to $193.2 million (GAAP) and $251.3 million (non-GAAP), with diluted EPS of $3.92 (GAAP) and $5.10 (non-GAAP), reflecting a 43.1% increase from Q1 2025.

• Communications and enterprise data end markets saw strong growth, partially offset by declines in storage, computing, and consumer segments.

• Expanded global presence with over 4,700 employees, 8 major sites, and 13 foundry partners.

• Capacity expansion target increased from $4 billion to $6 billion.

Financial highlights

• Q1 2026 revenue reached $804.2 million, a 7.1% increase sequentially and 26.1% year-over-year.

• GAAP gross margin was 55.3%, non-GAAP gross margin 55.5%, both nearly flat year-over-year.

• Operating income increased to $241.2 million, with operating cash flow at $250.3 million.

• Cash, cash equivalents, and short-term investments totaled $1.37 billion at quarter end.

• Quarterly dividend of $2.00 per share declared, totaling $98.3 million.

Outlook and guidance

• Q2 2026 revenue forecasted at $890 million–$910 million, with gross margin expected between 55.1%–55.9%.

• Enterprise data segment growth floor raised to 85% year-over-year due to strong backlog and ordering patterns.

• Communications segment expected to outperform corporate average, driven by optical modules and switches.

• Automotive segment expected to be flat in H1 2026, ramping in H2 as new design wins come to market.

• Management remains cautious due to macroeconomic uncertainties, including tariffs, inflation, and global conflicts.