AI Takeaway
Monolithic Power Systems (MPWR) delivered strong Q1 FY2026 results with revenue surging 26.1% YoY to $804.2M and net income jumping 43.1% to $193.2M, driven by robust operating leverage that expanded operating margin by 350 basis points to 30.0%.
Revenue
$804.18M
++26.14% YoY
EPS (Basic)
$3.94
++39.72% YoY
Gross Margin
55.3%
-0.06% YoY
Operating Income
$241.15M
++42.90% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 26.1% YoY to $804.2M in Q1 FY2026 from $637.6M in the prior-year period, reflecting broad-based demand strength. This top-line acceleration significantly outpaced SG&A growth of only 12.0%, demonstrating meaningful operating leverage.
Source: Source: 10-Q Income Statement Data
Operating income surged 42.9% YoY to $241.2M, with operating margin expanding approximately 350 basis points to 30.0% from 26.5% in Q1 FY2025. This outpaced revenue growth substantially, indicating disciplined cost management and favorable mix.
Source: Source: 10-Q Income Statement Data
Cash and equivalents rose 66.8% YoY to $1.063B from $637.4M, strengthening the balance sheet considerably. Total assets grew 20.1% to $4.45B while total liabilities grew at a slower pace of 22.2%, keeping the balance sheet healthy.
Source: Source: 10-Q Balance Sheet Data
2 more insights available
Upgrade to unlockAs a fabless semiconductor company, MPWR is exposed to potential demand swings from key end markets including AI/data center, automotive, and industrial. A slowdown in any major vertical could disproportionately impact revenue given the company's concentrated customer base. The 26.1% revenue growth, while strong, reflects cyclical tailwinds that may not persist.
Source: Source: 10-Q Financial Data
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Upgrade to unlockReported EPS of $5.10 versus the $4.99 analyst consensus — a +2.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $804.18M | $637.55M | +26.14% |
Cost of Revenue | $359.12M | $284.32M | +26.31% |
Gross Profit | $445.06M | $353.23M | +26.00% |
Operating Income | $241.15M | $168.76M | +42.90% |
Net Income | $193.23M | $135.05M | +43.08% |
EPS (Basic) | $3.94 | $2.82 | +39.72% |
EPS (Diluted) | $3.92 | $2.81 | +39.50% |
SG&A Expense | $103.35M | $92.24M | +12.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.45B | $3.71B | +20.07% |
Current Assets | $2.33B | $1.79B | +30.35% |
Total Liabilities | $771.46M | $631.51M | +22.16% |
Current Liabilities | $486.96M | $363.4M | +34.00% |
Stockholders' Equity | $3.68B | $3.07B | +19.64% |
Cash & Equivalents | $1.06B | $637.35M | +66.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $250.25M | $256.39M | -2.39% |
Investing Cash Flow | $-212.32M | $-257.49M | +17.54% |
Financing Cash Flow | $-75.27M | $-55.92M | -34.61% |
Dividends Paid | $78.4M | $60.01M | +30.65% |
D&A | $15.11M | $11.45M | +31.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 55.3% | 55.4% | -0.06% |
Operating Margin | 30.0% | 26.5% | +3.52% |
Net Margin | 24.0% | — | — |
ROE | 5.3% | — | — |
ROA | 4.3% | — | — |
Current Ratio | $4.787 | — | — |
Debt to Equity | $0.21 | — | — |
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Monolithic Power Systems delivered a strong Q1 FY2026, with revenue of $804.2M (+26.1% YoY) and net income of $193.2M (+43.1% YoY). Diluted EPS came in at $3.92, up 39.5% from $2.81 in Q1 FY2025, reflecting significant operating leverage.
MPWR's 26.1% YoY revenue growth to $804.2M in Q1 FY2026 was driven by strong demand across its end markets, with operating income growing even faster at 42.9% to $241.2M. The company maintained gross margins near 55.3%, suggesting the growth was not achieved at the expense of pricing or product mix.
MPWR's balance sheet is in excellent shape, with cash and equivalents of $1.063B (up 66.8% YoY), a current ratio of 4.79x, and a low debt-to-equity ratio of 0.21x. Total stockholders' equity stands at $3.68B, and the company generated $250.3M in operating cash flow during the quarter.
Yes, operating margin expanded meaningfully to 30.0% in Q1 FY2026 from 26.5% in Q1 FY2025, a gain of approximately 350 basis points driven by operating leverage. Gross margin remained stable at 55.3% versus 55.4% in the prior year, while net margin came in at 24.0%.
Based on the financial data, key risks for MPWR include potential gross margin compression as cost of revenue grew slightly faster than revenue (26.3% vs. 26.1%), a 2.4% decline in operating cash flow despite strong net income growth suggesting working capital consumption, and rising current liabilities growing at 34.0% YoY — faster than current assets at 30.3%.