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Monolithic Power's Q1 Earnings Beat Estimates on Solid Revenue Growth
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Key Takeaways
MPWR reported Q1 2026 results with earnings and revenue beating consensus estimates.
Monolithic Power saw 26.1% revenue growth, driven by AI servers, optical modules, and networking demand.
MPWR's Enterprise Data and Communications growth offset declines in storage and consumer markets.
Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong first-quarter 2026 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.
The Kirkland, WA-based company reported a strong 26.1% year-over-year revenue increase, driven by solid demand in enterprise data and communications. Growth was supported by higher adoption of power solutions for AI servers, optical modules and networking equipment. Its diversified strategy and new customer wins also helped maintain growth across segments.
Net Income
Net income, on a GAAP basis, was $193.2 million or $3.92 per share compared with $135.1 million or $2.81 per share in the year-ago quarter. Top-line growth boosted the bottom line during the quarter.
Non-GAAP net income improved to $251.3 million or $5.10 per share from $193.8 million or $4.04 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 21 cents.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power generated revenues of $804.2 million, up from $637.6 million in the year-ago quarter, primarily driven by solid growth in the Enterprise Data market, representing 32.7% of total revenues in the first quarter of 2026. The top line beat the Zacks Consensus Estimate of $781.1 million.
By end markets, Enterprise Data increased to $262.8 million from $132.9 million in the year-ago quarter, owing to higher sales of power management solutions for AI and server applications. Net sales from Storage and Computing revenues were $174.4 million, down 7.5% year over year. In the first quarter, the Automotive end market contributed $152.4 million in revenues, up 5.1% year over year due to higher sales of Advanced Driver Assistance Systems power solutions.
Industrial revenues were $48.6 million compared with $42.6 million in the year-ago quarter. The Communications end market registered $111.5 million in revenues, up from $71.8 million, driven by higher sales of power solutions for optical modules and switches. Net sales from the Consumer end market decreased to $54.5 million from $56.9 million in the year-ago quarter.
Other Details
Non-GAAP gross margin was 55.5% compared with 55.7% in the year-earlier period. Non-GAAP operating expenses were $158.3 million compared with $133.5 million reported a year ago. Non-GAAP operating income was $288 million, up from $221.5 million, owing to higher revenues.
Cash Flow & Liquidity
During the March quarter, the company generated an operating cash flow of $250.3 million compared with $256.4 million in the prior-year quarter. As of March 31, 2026, cash and cash equivalents and short-term investments totaled $1.37 billion, with other long-term liabilities of $119.2 million.
Arista Networks Inc. (ANET - Free Report) is scheduled to release first-quarter 2026 earnings on May 5. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, suggesting growth of 24.62% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 17.94%. The company delivered an average earnings surprise of 9% in the last four reported quarters.
CDW Corporation (CDW - Free Report) is set to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.28 per share, implying growth of 6.05% from the year-ago reported figure.
CDW has a long-term earnings growth expectation of 7.25%. The company delivered an average earnings surprise of 5.72% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $3.25 per share, implying growth of 2.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.4%. The company delivered an average earnings surprise of 5.66% in the last four reported quarters.
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Monolithic Power's Q1 Earnings Beat Estimates on Solid Revenue Growth
Key Takeaways
Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong first-quarter 2026 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.
The Kirkland, WA-based company reported a strong 26.1% year-over-year revenue increase, driven by solid demand in enterprise data and communications. Growth was supported by higher adoption of power solutions for AI servers, optical modules and networking equipment. Its diversified strategy and new customer wins also helped maintain growth across segments.
Net Income
Net income, on a GAAP basis, was $193.2 million or $3.92 per share compared with $135.1 million or $2.81 per share in the year-ago quarter. Top-line growth boosted the bottom line during the quarter.
Non-GAAP net income improved to $251.3 million or $5.10 per share from $193.8 million or $4.04 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 21 cents.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote
Revenues
Monolithic Power generated revenues of $804.2 million, up from $637.6 million in the year-ago quarter, primarily driven by solid growth in the Enterprise Data market, representing 32.7% of total revenues in the first quarter of 2026. The top line beat the Zacks Consensus Estimate of $781.1 million.
By end markets, Enterprise Data increased to $262.8 million from $132.9 million in the year-ago quarter, owing to higher sales of power management solutions for AI and server applications. Net sales from Storage and Computing revenues were $174.4 million, down 7.5% year over year. In the first quarter, the Automotive end market contributed $152.4 million in revenues, up 5.1% year over year due to higher sales of Advanced Driver Assistance Systems power solutions.
Industrial revenues were $48.6 million compared with $42.6 million in the year-ago quarter. The Communications end market registered $111.5 million in revenues, up from $71.8 million, driven by higher sales of power solutions for optical modules and switches. Net sales from the Consumer end market decreased to $54.5 million from $56.9 million in the year-ago quarter.
Other Details
Non-GAAP gross margin was 55.5% compared with 55.7% in the year-earlier period. Non-GAAP operating expenses were $158.3 million compared with $133.5 million reported a year ago. Non-GAAP operating income was $288 million, up from $221.5 million, owing to higher revenues.
Cash Flow & Liquidity
During the March quarter, the company generated an operating cash flow of $250.3 million compared with $256.4 million in the prior-year quarter. As of March 31, 2026, cash and cash equivalents and short-term investments totaled $1.37 billion, with other long-term liabilities of $119.2 million.
Zacks Rank
Monolithic Power currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release first-quarter 2026 earnings on May 5. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, suggesting growth of 24.62% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 17.94%. The company delivered an average earnings surprise of 9% in the last four reported quarters.
CDW Corporation (CDW - Free Report) is set to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.28 per share, implying growth of 6.05% from the year-ago reported figure.
CDW has a long-term earnings growth expectation of 7.25%. The company delivered an average earnings surprise of 5.72% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $3.25 per share, implying growth of 2.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.4%. The company delivered an average earnings surprise of 5.66% in the last four reported quarters.