Monolithic Power Systems (MPWR) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $980.6M, up 21.9% sequentially and 47.6% year-over-year, driven by innovation, diversified end markets, and expanded supply chain capacity.

• Enterprise Data revenue grew 164.3% YoY, with strong demand in communications and automotive segments; all end markets showed sequential growth.

• Net income for Q2 2026 was $257.3M, up 90.6% YoY, with GAAP gross margin at 55.2% and non-GAAP at 55.6%.

• Expanded product offerings in DDR5 memory and high-voltage AC/DC for data centers, with initial orders received.

• Extended capacity goals beyond $6B and expanded global presence with over 4,900 employees and 8 major sites.

Financial highlights

• Q2 2026 revenue was $980.6M, up 47.6% YoY; non-GAAP diluted EPS was $6.50, up from $5.10 in Q1 2026.

• Operating income increased to $303.9M, and operating margin (GAAP) reached 31.0%.

• Free cash flow for Q2 2026 was $147.3M, with operating cash flow at $227.9M.

• Cash and equivalents as of June 30, 2026 were $1,413.8M.

• Quarterly dividend increased to $2.00 per share, with $98.3M accrued as of June 30, 2026.

Outlook and guidance

• Q3 2026 revenue forecasted at $1,140M–$1,160M, with gross margin expected at 55.2%–55.8%.

• Raised enterprise data end market growth floor from 85% to 130% for the year.

• Automotive revenue expected to ramp in the second half, with mid-teens YoY growth.

• Management expects continued above-industry growth, driven by innovation in AI, automotive, and green energy.

• Liquidity is expected to be sufficient for the next 12 months.