Monolithic Power Systems (MPWR) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $4.15B, up from $2.79B in 2025, with a CAGR of 27.8% from 2018 to 2026, outpacing the industry average.

• Growth driven by innovation, diversified end markets, and expanded supply chain capacity.

• Expanded global presence with over 4,900 employees, 8 major sites, and 13 foundry partners as of 2026.

• Significant expansion in enterprise data and communications segments, with broad-based customer engagement.

• Initial orders received for high-speed DDR5 memory components and sampling of high-voltage AC/DC products for data centers.

Financial highlights

• Q2 2026 revenue reached $4.15B, up from $2.79B in 2025, with non-GAAP diluted EPS of $6.50 and GAAP net income of $257.3M.

• Non-GAAP gross margin for Q2 2026 was 55.6%, with GAAP gross margin at 55.2%.

• Free cash flow for Q2 2026 was $147.3M, with 70% of free cash flow returned to shareholders from Q1 2022 to Q2 2026.

• Quarterly dividend increased by over 150% from Q1 2022 to Q2 2026, reaching $2.00 per share.

• Operating cash flow was $227.9M, with cash and equivalents at $1,413.8M.

Outlook and guidance

• Q3 2026 revenue forecasted at $1,140M–$1,160M, with gross margin expected at 55.2%–56.0%.

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

• Positioned for continued above-market growth, driven by innovation in AI, automotive, and green energy sectors.

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

• Fully diluted shares outstanding expected between 49.1M and 49.5M.