Monolithic Power Tops $1 Billion in Quarterly Revenue as AI Data Center Sales Soar

Monolithic Power Systems topped $1 billion in quarterly revenue for the first time, as sales of power chips for AI servers and optical networking drove a 63% jump in third-quarter revenue to a record $1.20 billion, the company said in its earnings commentary filed with an 8-K on Thursday.

The chipmaker forecast fourth-quarter revenue of $1.315 billion to $1.385 billion, added $500 million to its buyback authorization and named a permanent chief financial officer, according to the filing.

"Overall, we see accelerated growth. Our diversified growth strategy is paying off," said Michael Hsing, CEO and founder of MPS.

AI data centers lead the surge

Enterprise Data revenue, which the company tied to higher sales of power management solutions for AI and server applications, rose 164.6% from a year earlier to $506.7 million. It made up 42.1% of total revenue, up from 38.8% in the second quarter.

Communications revenue more than doubled, rising 134.7% to $187.4 million on higher sales of power solutions for optical modules and switches. Automotive revenue grew 19.2% to $180.7 million, while Consumer revenue fell 11.6% to $64.0 million.

The company said its manufacturing capacity now supports more than $6 billion in annual revenue, and it expects $8 billion of capacity by the second half of 2027 on the way to $10 billion.

Profits and buybacks

GAAP net income rose 50.8% to $271.1 million, or $5.51 per diluted share, from $179.8 million, or $3.74, a year earlier. Non-GAAP net income climbed 77.3% to $402.7 million, or $8.19 per share, from $4.73.

GAAP gross margin was 55.4%, and GAAP operating margin widened to 29.7% from 26.5% a year earlier.

MPS repurchased $453.4 million of its stock in the quarter, compared with $4.0 million in the second quarter. In October, its board authorized an additional $500 million for repurchases, bringing the total current authorization to $1 billion.

By the numbers

• Revenue: $1.20 billion, up 63.1% from a year ago and 22.6% from Q2
• Diluted EPS: $5.51 GAAP, $8.19 non-GAAP
• Enterprise Data revenue: $506.7 million, up 164.6%
• Q4 revenue outlook: $1.315 billion to $1.385 billion
• Q3 buybacks: $453.4 million

Fourth-quarter outlook

For the quarter ending Dec. 31, MPS expects GAAP gross margin of 55.2% to 55.8% and non-GAAP gross margin of 55.5% to 56.1%. It sees GAAP operating expenses of $334.0 million to $342.0 million.

Cash, cash equivalents and short-term investments fell to $1.09 billion at the end of the quarter from $1.41 billion at the end of June, while operating cash flow rose to $289.9 million.

New finance chiefs

In the same 8-K, the company said its board on Oct. 27 appointed Tony Balow, 56, as vice president and chief financial officer, effective immediately. Balow had served as vice president of finance since September 2023 and previously spent 23 years at Intel, according to the filing.

The board also named Robert Dean, 61, as vice president and chief accounting officer. Dean had been interim CFO since February 2026 and before that served as corporate controller from June 2016.

Sources

1. Monolithic Power Systems Form 8-K with third-quarter 2026 earnings commentary (Exhibit 99.1) and officer appointments (Item 5.02, Exhibit 99.2), filed Oct. 29, 2026 (accession 0001628280-26-068202)

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