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Monolithic Power (MPWR) Q3 2026 Earnings Report
MPWR Q3 2026 EPS Results
- Actual EPS
- $8.19
- Consensus EPS
- $7.79
- Beat/Miss
- Beat by +$0.40
- One Year Ago EPS
- $4.73
MPWR Q3 2026 Revenue Results
- Actual Revenue
- $1.20B
- Expected Revenue
- $1.16B
- Beat/Miss
- Beat by +$40.80M
- YoY Revenue Growth
- +63.11%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
MPWR Upcoming Earnings
Monolithic Power's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MPWR Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record $1.2 billion quarterly revenue, 63% year-over-year growth, a raised enterprise data growth floor, broad-based expansion across communications and automotive, new robotics and high-voltage opportunities, disciplined margin expansion, and substantial capacity plans. The main challenges were near-term notebook weakness, ongoing GaN reliability validation, delayed timing for 800-volt and data-converter revenue, early-stage building automation efforts, and partial absorption of cost increases. Highlights significantly outweighed the lowlights.
Company Guidance
MPS expects to have $8 billion of capacity in place by the second half of 2027 on its way to $10 billion; enterprise data’s floor is now 150% year-over-year, although it is too early to provide a 2027 percentage; the storage and compute segment could be kind of flattish, up a couple of points year-over-year; 800-volt architecture ramps are expected late in '27 with probably more in '28, with revenue probably end of the '27 and 2028; gross margin is expected to remain in the 55% to 60% sweet spot with slow, methodical expansion, including another 10 basis points at the midpoint of the Q4 guide, while operating margin has been growing kind of a point a quarter almost; distribution inventory remains within the normal 5- to 8-week range, and building automation could ultimately represent $50 billion in revenue, but will take some time.
- Record Quarterly Revenue and Accelerated GrowthQ3 revenue reached $1.2 billion, exceeding $1 billion for the first time, up 22% from Q2 2026 and up 63% from Q3 2025. Management described an accelerated growth period and said it saw no signs of a slowdown during the first nine months.
- Capacity Expansion Ahead of DemandAnnual revenue-supporting capacity surpassed $6 billion during Q3. MPS expects to have $8 billion of capacity in place by the second half of 2027, progressing toward $10 billion, and said it is keeping capacity ahead of the business to support expected demand.
- Enterprise Data Growth Outlook RaisedManagement raised the year-over-year enterprise data growth floor from 130% to 150% based on Q3 results and Q4 expectations. Growth drivers include customer diversification, module growth, content gains from new platforms, ASIC customers, and potential Agentic AI-driven GPU growth.
- Broader Enterprise Data Customer Base and AI Design ToolsUsing internally developed AI design tools, MPS expanded its customer base in traditional markets and won new applications such as desktop AI designs. The company is addressing a longer tail of smaller customers that could become sizable customers over time.
- Communications Growth AcceleratedCommunications revenue grew 43% sequentially in Q3. Growth was driven by both optical modules and the newer switch business, with management identifying communications as its second-fastest-growing end market for the year and expecting the growth drivers to remain intact in 2027.
- Optical Module and Switching OpportunitiesThe optical module business is benefiting from the transition to 1.6, including both volume and content gains. Additional sockets in the switch business are expected to support further communications growth, and switching was described as the fastest-growing communications sub-end market on a percentage basis.
- Automotive Design Wins and 48-Volt OpportunityAutomotive growth began ramping in Q3, with demand diversified across customers and regions including the U.S., Europe, Asia, and China. MPS received first orders for 48-volt power solutions and expects 48-volt and zonal architectures to drive growth in 2027.
- Robotics Products Beginning to RampMPS began ramping robotic solutions across multiple geographies using sensor and motor-control products. Management said the current year is focused on accumulating robotics and other design wins, with more of those wins expected to convert to revenue in 2027.
- Expansion of Memory and Storage PortfolioMPS continued increasing its serviceable available market through high-speed memory products. New clock drivers and register clock-driver products are lined up for revenue in 2027 or 2028, and management expects these products to ramp significantly, potentially expanding the opportunity beyond power management.
- DDR5 and Storage DemandDDR5, primarily through power-management IC solutions, was identified as the largest growth contributor in the storage and compute segment. Hard-disk-drive and SSD business also showed healthy growth over the past year.
- New Data Converter Design WinMPS landed its first large data-converter design win and expects it to ramp next year. Management said it is still early in the process and is not yet prepared to quantify the long-term revenue contribution or total addressable market.
- High-Voltage Portfolio and GaN SamplingMPS continued building its high-voltage portfolio and began sampling internally developed GaN-based solutions for 800-volt data-center architectures, complementing its existing silicon-carbide designs. Customers can choose between GaN and silicon carbide.
- 800-Volt Power Architecture OpportunityManagement expects 800-volt architecture ramps to begin in late 2027, with more activity in 2028. The company is experimenting with 800-volt power in its own building and said the technology could provide power savings beyond data centers, including commercial buildings and residential applications.
- Gross Margin and Operating Margin ExpansionGross margin increased 10 basis points in Q3, and the midpoint of Q4 guidance implies another 10-basis-point increase. Management reaffirmed a 55% to 60% gross-margin model with slow, methodical expansion and said operating margin has been growing by approximately one point per quarter.
- Operating Leverage From Efficient R&DManagement said higher growth rates are causing OpEx to fall below its model range because spending cannot increase as quickly as revenue. Executives emphasized that R&D efficiency and talent matter more than simply increasing R&D dollars.
- Share Repurchase ProgramMPS repurchased more than $450 million of its own stock during Q3.
- Fabless Model Supports Capacity GrowthManagement does not anticipate a large increase in capital intensity, a change to the capital structure, or a significant OpEx impact merely to add capacity, citing the flexibility of its fabless model.
- Diversified Product and End-Market StrategyMPS said it has more than 6,000 products, continues to develop new products across segments, and relies on a diversified growth strategy rather than predicting which individual market will lead. Management said design activity and customer excitement around new technologies indicate growth beyond next year.
- Building Automation Pilot UnderwayMPS installed its building-automation project in a 1 million-square-foot building in China and began experimenting with its own AC-to-DC power systems for 800-volt supply. Management said it has hardware components, chips, and module technology for the project, while acknowledging that reaching the previously discussed $40 billion to $50 billion opportunity will take time.
- Inventory Positioned to Support SalesDistribution inventory remained at the lean end of the normal range, and internal inventory declined to 117 days on a forward-revenue basis as revenue ramped. Management said inventory was not limiting the business and would be positioned as capacity and wafer starts increase.
- Cost Increases Partially Shared With CustomersMPS said it is absorbing some cost increases while also increasing prices in some cases and sharing the increases with customers. Pricing was described as not a significant contributor to revenue growth; the focus is on avoiding gross-margin dilution.
MPWR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2026 (Q4) | 9.20- | 4.79 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 7.798.19 | 4.73 | 73.15% (+3.46) | |
| Jul 30, 2026 | 2026 (Q2) | 5.876.50 | 4.21 | 54.39% (+2.29) | |
| Apr 30, 2026 | 2026 (Q1) | 4.905.10 | 4.04 | 26.24% (+1.06) | |
| Feb 05, 2026 | 2025 (Q4) | 4.744.79 | 4.09 | 17.11% (+0.70) | |
| Oct 30, 2025 | 2025 (Q3) | 4.644.73 | 4.06 | 16.50% (+0.67) | |
| Jul 31, 2025 | 2025 (Q2) | 4.124.21 | 3.17 | 32.81% (+1.04) | |
| May 01, 2025 | 2025 (Q1) | 4.014.04 | 2.81 | 43.77% (+1.23) | |
| Feb 06, 2025 | 2024 (Q4) | 3.984.09 | 2.88 | 42.01% (+1.21) | |
| Oct 30, 2024 | 2024 (Q3) | 3.974.06 | 3.08 | 31.82% (+0.98) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed