Q1 2026 Monolithic Power Systems Inc Earnings Call Transcript
Key Points
- Monolithic Power Systems Inc (MPWR) achieved record quarterly revenue of $804 million, marking a 7% increase from the previous quarter and a 26% increase year-over-year.
- The communications end market grew 33% sequentially, driven by strong demand for power solutions in optical modules and switches.
- The company is expanding its manufacturing capacity with a new goal of reaching $6 billion, up from the previous $4 billion target.
- Monolithic Power Systems Inc (MPWR) continues to diversify its global supply chain, enhancing its ability to capture future growth opportunities and maintain supply stability.
- The enterprise data segment is expected to see significant growth, with a revised forecast of 85% year-over-year growth, up from the previous 50% floor.
- The notebook segment remains a concern, with potential headwinds from memory shortages and lower margins in the consumer market.
- Gross margins have been at the lower end of the company's model, with potential headwinds anticipated in the second half of the year.
- The auto segment is expected to remain flat in the first half of the year, with growth anticipated only in the latter half.
- There is uncertainty in predicting the exact timing of revenue ramp-ups for new projects, which could impact short-term financial performance.
- The company faces challenges in differentiating between AI and CPU growth drivers, making it difficult to parse out specific contributions to revenue growth.
Good day, and thank you for standing by. Welcome to the Monolithic Power Systems, Inc. first-quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
We are joined by speakers, Michael Hsing, CEO and Founder of MPS; Rob Dean, Interim CFO; Tony Balow, Vice President of Finance.
And now I would like to turn the conference over to Arthur Lee to read a safe harbor statement. Please go ahead.
Earlier today, MPS released a written commentary on our results of operations for the first quarter ended March 31, 2026. This document can be found on our website.
Before we begin, I would like to remind everyone that in the course of today's presentation, we may make forward-looking statements and projections within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The risks, uncertainties and other factors that could cause actual results to differ from
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