$MPWR · MONOLITHIC POWER SYSTEMS, INC.
Monolithic Power Systems filed its 10-Q for Q3 FY2026, reporting revenue of $1.202B (+63.1% YoY), net income of $271.1M, and diluted EPS of $5.51. Gross margin held at 55.4% while operating margin expanded to 29.7%. Enterprise Data was the standout end market at $506.7M, more than doubling from $191.5M a year ago and now representing 42.1% of total revenue. The company repurchased $457.5M in stock during the nine-month period and paid $297.2M in dividends.
- Q3 FY2026 revenue hit $1.202B, up 63.1% YoY from $737.2M in Q3 FY2025.
- Enterprise Data revenue tripled to $506.7M (42.1% of total) vs. $191.5M (26.0%) a year ago.
- Diluted EPS reached $5.51 vs. $3.74 in Q3 FY2025, a 47.3% increase.
- Operating margin expanded to 29.7% from 26.5% a year ago on operating leverage.
- Cash and equivalents dropped to $560.5M from $1.099B at year-end 2025, driven by $457.5M in buybacks.
Extended-hours trading shows MPWR at $1,347.70, up 1.46% vs. the regular close of $1,328.30. The market is rewarding the massive Enterprise Data-driven revenue beat and margin expansion, though the move is modest given the stock was already up 6.78% in the regular session.
MPWR is emerging as a prime beneficiary of AI data-center buildout, with Enterprise Data revenue tripling YoY and total revenue growth accelerating to 63% — rare for a $65B market-cap semiconductor company.
MPWR's Enterprise Data surge mirrors the AI infrastructure buildout driving peers like NVDA and AMD. The 63% total revenue growth and 29.7% operating margin place MPWR among the strongest analog/power-management beneficiaries of the data-center capex cycle.
Enterprise Data concentration risk: that end market jumped from 26.0% to 42.1% of revenue in one year, making MPWR highly exposed to any AI capex slowdown. Inventory also ballooned to $764.9M from $564.6M at year-end, raising overbuild risk if demand softens.