POWI

Over the past six months, Power Integrations has been a great trade, beating the S&P 500 by 20.9%. Its stock price has climbed to $61.57, representing a healthy 34.1% increase. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move. Is now the time to buy Power Integrations, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. We’re happy investors have made money, but we’re passing on Power Integrations for now. Here are three reasons why there are better opportunities than POWI, plus one stock we’d rather own. Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Power Integrations’s demand was weak and its revenue declined by 6.4% per year. This wasn’t a great result and signals it’s a low quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Analyzing the trend in its profitability, Power Integrations’s operating margin decreased by 24.7 percentage points over the last five years. Power Integrations’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was 3.4%. We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable. Sadly for Power Integrations, its EPS declined by 14.1% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Power Integrations doesn’t pass our quality test. With its shares topping the market in recent months, the stock trades at 37.5× forward P/E (or $61.57 per share). At this valuation, there’s a lot of good news priced in - we think other companies feature superior fundamentals at the moment. We’d suggest looking at our favorite semiconductor picks and shovels play. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in Power Integrations, Inc.? Here are five stocks we like better. Power Integrations delivered improved second-quarter results, with revenue rising 10% sequentially to $118.9 million, non-GAAP operating margin reaching 17.1%, and non-GAAP EPS increasing to $0.37. Gross margin benefited from stronger product mix, higher volume and favorable currency effects. Industrial and emerging growth markets gained momentum: industrial revenue rose 14% sequentially, automotive revenue is expected to double in 2026, and the company secured new designs in automotive, energy storage and appliance applications. It is also investing in longer-term high-voltage GaN and data-center opportunities. Third-quarter guidance calls for continued growth, with revenue of $122 million to $130 million and operating margin of 17% to 19%. The company also lowered its full-year operating-expense outlook to a low-single-digit decline while maintaining strategic investments. Dividends Meet Chips: Top 3 Semiconductor Stocks for Growth Power Integrations (NASDAQ:POWI) reported second-quarter revenue of $118.9 million, up 10% sequentially and 3% from a year earlier, as all four of its end-market categories improved from the prior quarter. The company also expanded non-GAAP operating margin to 17.1% and generated $22 million in operating cash flow. President and CEO Jen Lloyd said the results reflected progress in the company’s effort to produce near-term profitable growth while directing more investment toward longer-term opportunities in data centers, energy infrastructure, rail, automotive and high-power industrial markets. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control American Superconductor faster than a speeding bullet on EPS beat Non-GAAP gross margin was 55.1%, up 160 basis points sequentially and slightly above the high end of the company’s outlook. Chief Financial Officer Nancy Erba attributed the increase to improved product mix, higher volume and a favorable yen-dollar exchange-rate effect. Industrial sales represented 43% of total revenue during the quarter. Non-GAAP operating expenses were $45.2 million, slightly below the prior quarter and below the company’s outlook range. Erba said Power Integrations continued to align spending with revenue following a first-quarter restructuring and other efficiency initiatives, while maintaining investments in strategic growth markets. → 3 Drone Stocks That Should Soar After the Summer Slump Power Integrations Stock Can Power Your Portfolio Non-GAAP net income was $20.9 million, or $0.37 per diluted share, compared with $0.25 per diluted share in the prior quarter. Free cash flow totaled $18 million, reflecting $22 million in operating cash flow and $4 million in capital expenditures. Inventory on the company’s balance sheet declined by $5 million, while days on hand fell by 27 days to 265 days at quarter-end. Channel inventory also improved, with weeks on hand declining by more than one-and-a-half weeks to 7.3 weeks. Erba said the company views seven to eight weeks as an appropriate range for channel inventory and expects further reductions in inventory days during the second half of 2026. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Industrial revenue increased 14% during the quarter, led by home and building automation, power tools and broader industrial applications. For the first half of 2026, industrial revenue rose 16% year over year, following 15% growth in 2025, according to Erba. Consumer revenue rose 5% sequentially, with seasonal air-conditioning demand offsetting continued softness in major appliances. Communications revenue increased 16% sequentially and computer revenue grew 5%, both recovering from seasonal lows in the first quarter. Lloyd said the company’s appliance and low-power industrial markets will remain key contributors to revenue and cash flow as it shifts additional research, development and go-to-market resources to higher-power markets. She cited TOPSwitch-GaN and TinySwitch-5 as recent releases designed to build on existing customer familiarity and product architectures. TinySwitch-5 has entered production designs and is expected to make a meaningful revenue contribution in the second half of 2026, particularly among appliance customers, Lloyd said. The company also said it has a healthy appliance-design pipeline, supported largely by TinySwitch-5 and TOPSwitch-GaN. Automotive revenue, which Power Integrations includes within industrial, is on track to double in 2026, according to Lloyd. During the second quarter, the company won a design at a major tier-one supplier for a gallium-nitride-based micro DC-DC converter scheduled to enter production next year. Lloyd said the company continues to target $100 million in automotive revenue in the 2029-to-2030 timeframe, subject to electric-vehicle market conditions. Power Integrations demonstrated its 2,200-volt PowiGaN technology, extending its high-voltage gallium-nitride roadmap beyond prior 750-volt, 900-volt, 1,250-volt and 1,700-volt platforms. Lloyd said the technology is currently a demonstration rather than a commercial product and that meaningful revenue is likely several years away. The company sees potential applications for the 2,200-volt technology in data centers and automotive systems. Lloyd said the roadmap could help customers planning for future 1,500-volt power architectures, while the company’s current products address opportunities associated with 800-volt data-center systems. Power Integrations is pursuing two data-center opportunity tracks: auxiliary power applications that can use products available today, and the main power path to graphics processing units. Lloyd said auxiliary-power revenue could begin in 2028, while the main power-path opportunity remains earlier in development and is further out in time. In June, the company published two reference designs for NVIDIA 800-volt racks using its 1,700-volt InnoMux products. Lloyd said the auxiliary power supplies would sit on compute trays in native 800-volt systems and could provide about 30% space savings relative to discrete silicon-carbide designs. The company also said it is shipping gate drivers into battery-storage systems used alongside renewable-energy installations. During the second quarter, it won a utility-scale design at a supplier of batteries for energy-storage systems and electric vehicles. For the third quarter, Power Integrations forecast revenue of $122 million to $130 million, representing a 6% sequential increase at the midpoint. The company expects consumer revenue to decline seasonally, while communications, computer and industrial revenue continue to increase. Non-GAAP gross margin is expected to be 54% to 55%. Non-GAAP operating expenses are projected at $45 million to $46 million. Non-GAAP operating margin is expected to range from 17% to 19%. Erba said the company now expects a low-single-digit decline in non-GAAP operating expenses for the full year, compared with its prior expectation for low-single-digit growth, while continuing investments in data center, industrial, energy, automotive and rail initiatives. Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company's products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers. The firm's product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Power Integrations Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Q2 revenue was $118.9 million, up 3% year-over-year and 10% sequentially. Gross Margin: Non-GAAP gross margin was 55.1%, up 160 basis points sequentially. Operating Margin: Non-GAAP operating margin was 17.1%, up 540 basis points from the prior quarter. Net Income: Non-GAAP net income was $20.9 million, or $0.37 per diluted share, up from $0.25 in the prior quarter. Operating Expenses: Non-GAAP operating expenses were $45.2 million, down slightly from the prior quarter. Cash Flow: Operating cash flow was $22 million, with free cash flow of $18 million. Industrial Revenue: Industrial revenue grew 14% in Q2 and 16% year-to-date. Consumer Revenue: Consumer revenue was up 5% sequentially. Communications Revenue: Communications revenue grew 16% sequentially. Computer Revenue: Computer revenue grew 5% sequentially. Inventory: Inventory days on hand fell by 27 days to 265 days; channel inventory improved to 7.3 weeks. Q3 Outlook: Revenue expected between $122 million and $130 million; non-GAAP gross margin expected between 54% and 55%; non-GAAP operating margin expected between 17% and 19%. Warning! GuruFocus has detected 6 Warning Signs with POWI. Is POWI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Q2 revenue of $119 million grew 10% sequentially, with improvement across all four end markets and non-GAAP operating margin expanding by over 5 percentage points to 17.1%. Demonstrated 2200-volt POWI GaN technology, extending leadership in high-voltage GaN and providing a roadmap for future data center and automotive applications. Won a utility-scale battery storage design at a top supplier, expanding presence in the growing energy storage market. Secured a GaN-based micro DC-to-DC converter design win at a major Tier 1 automotive supplier, marking a significant BOM expansion in EVs. Industrial revenue grew 16% year-to-date, driven by broad-based strength in renewable energy, home and building automation, and tools. Channel inventory normalized to 7.3 weeks, within the target range, and inventory days on hand fell by 27 days to 265, improving supply chain health. Q3 revenue outlook of $122-130 million implies 6% sequential growth, with expectations for continued growth in communications, computer, and industrial categories. Consumer revenue is expected to decline in Q3 due to normal seasonality, with continued softness in major appliances. The 2200-volt GaN technology is only a demonstration, with products expected several years out, limiting near-term revenue contribution. Data center revenue from main power path to GPU is still early-stage and dependent on 800-volt system deployments, with material revenue not expected until 2028 or later. Gross margin is expected to face a slight headwind in Q3 due to yen/dollar exchange rate fluctuations, with volatility causing ripples through 2026. Operating expenses, while reduced, remain a focus as the company balances cost discipline with investments in strategic growth markets. The company is still working through inventory reduction, with further reductions expected in the second half, indicating ongoing channel adjustments. Q: Can you provide color on the timeline for the newly demonstrated 2200-volt GaN technology, and when it might contribute to revenue or design wins?A: Jennifer Lloyd (CEO) stated that the 2200-volt GaN is currently a technology demonstration, not a launched product. Customers in data center, auto, and other markets are interested in the roadmap, but products based on this platform, particularly for the 1,500-volt data center roadmap, are several years away from meaningful revenue contribution. Q: Are the timelines for data center and automotive revenue still on track, and what are the expectations for 2027?A: Jennifer Lloyd (CEO) confirmed that automotive revenue is on track to double this year, with a $100 million target in the 2029-2030 timeframe still attainable. For data centers, auxiliary power designs using current products could generate revenue in 2028, while the main power path to the GPU is further out and dependent on the deployment of 800-volt systems. Q: Does the 2200-volt GaN technology improve your position in securing 800-volt designs, given customers want a clear roadmap to higher voltages?A: Jennifer Lloyd (CEO) affirmed that the technology roadmap is a significant advantage. Customers consistently cite power as a critical challenge, and having a track record of high-voltage innovation, including the 2200-volt demonstration, helps Power Integrations partner with customers to solve challenges at 800 volts today and as architectures evolve. Q: Can you discuss your supply chain capacity and whether competitors are facing supply issues that could open doors for market share gains?A: Nancy Erba (CFO) noted that Power Integrations has a unique supply chain structure that allows them to maintain competitive lead times. A hyperscaler customer recently highlighted this as a differentiator. The company believes its ability to supply consistently, combined with its technology roadmap, presents an opportunity to gain share as competitors may face supply constraints. Q: Given the new 2.2kV GaN announcement, have you explored solid-state transformers (SSTs), and what new applications does this technology open up?A: Jennifer Lloyd (CEO) stated that discussions on SSTs have primarily focused on existing gate driver products, but GaN is being discussed for these applications. For 2,200-volt GaN, customer interest is currently centered on data center and automotive applications, though new applications are likely to emerge as the technology evolves. Q: Can you provide more detail on the channel inventory levels and the current order velocity versus consumption?A: Nancy Erba (CFO) confirmed that channel inventory has improved significantly, dropping from over 9 weeks at the start of the year to 7.3 weeks, which is within the healthy 7-8 week target range. The company feels good about the health of inventory by partner, product type, and region, and expects some level of sell-in during Q3 while aiming to stay in that healthy range. Q: What is driving the strong performance in the industrial segment, and is this momentum sustainable?A: Nancy Erba (CFO) reported that industrial revenue grew 14% in Q2 and 16% year-to-date, driven by broad-based growth across home and building automation, power tools, and metering. This follows 15% growth in 2025, demonstrating sustained momentum in the company's largest end market. Q: Can you elaborate on the new design win for a GaN-based micro DC-to-DC converter in the automotive market?A: Jennifer Lloyd (CEO) highlighted a Q2 design win at a major Tier 1 supplier for a GaN-based micro DC-to-DC converter scheduled for production next year. This win represents an important endorsement of POWI GaN in the auto market, where other high-voltage GaN offerings have struggled, and marks a significant step in expanding the bill of materials beyond emergency power supplies. Q: What is the outlook for gross margin and operating expenses in the third quarter?A: Nancy Erba (CFO) guided Q3 non-GAAP gross margin to be in the range of 54-55%, near the top end of the target range. Non-GAAP operating expenses are expected to be between $45 million and $46 million, a slight increase from Q2 but meaningfully below the prior year. The company now expects a low single-digit decrease in OpEx for the full year, versus prior expectations of low single-digit growth. Q: How is the company balancing investments in long-term growth markets with expense discipline?A: Nancy Erba (CFO) explained that the company is aligning expenses more closely with revenue through the restructuring completed in Q1 and broader efficiency initiatives. While protecting investments in strategic growth markets like data center, industrial, energy, automotive, and rail, the company is achieving operating leverage, with Q2 non-GAAP operating margin expanding 540 basis points sequentially to 17.1%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Power Integrations (POWI) is drawing attention after reporting stronger second quarter earnings, updating guidance for the third quarter, affirming its dividend, and highlighting progress in high voltage PowiGaN technology. See our latest analysis for Power Integrations. Power Integrations’ share price has been volatile around these announcements, with a 1-day share price return that declined 4.06% but a 7-day share price return up 9.51%. The year-to-date share price return of 66.09% contrasts with a 5-year total shareholder return that is down 33.55%, suggesting strong recent momentum following weaker multi year results. If you are looking for other ways to position around trends in power electronics and data infrastructure, now could be a good time to review 37 power grid technology and infrastructure stocks Power Integrations now pairs a growing GaN opportunity and improving earnings with a share price that is up 66% in 2026 but still below its 5 year mark. Are investors overpaying for the quality on offer? Based on the most followed narrative, Power Integrations’ fair value of $73.60 sits above the last close at $61.95. This puts the current share price at a discount while also baking in ambitious assumptions that investors should understand. Read the complete narrative. Curious what earnings path and margin rebuild sit behind that fair value? The narrative leans on rapid profit growth, richer product mix, and a punchy future earnings multiple. The detailed numbers may surprise you. Result: Fair Value of $73.60 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Power Integrations still faces meaningful risks from its heavy exposure to consumer appliances and ongoing tariff and trade uncertainty that could challenge this upbeat narrative. Find out about the key risks to this Power Integrations narrative. The analyst narrative points to a fair value of $73.60, which sits above Power Integrations’ last close at $61.95. Yet our DCF model based on future cash flows produces a value of $25.94, so the stock appears expensive on this measure. Which set of assumptions do you find more realistic? Look into how the SWS DCF model arrives at its fair value. The mix of enthusiasm and caution around Power Integrations makes the story finely balanced, so it helps to move quickly and review the underlying data yourself. A good place to start is by reviewing the 1 key reward and 4 important warning signs If you stop with Power Integrations, you could miss other opportunities. Take a few minutes to scan focused stock ideas that might fit your watchlist. Target income potential with companies paying stronger yields and consistent payouts by checking out the 8 dividend fortresses. Hunt for quality at a sensible price by reviewing the 51 high quality undervalued stocks that filters for fundamentals and valuation in one place. Prioritise strength and resilience by focusing on companies in the solid balance sheet and fundamentals stocks screener (50 results) that combine financial stability with solid business profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include POWI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Power Integrations (POWI) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.63%. A quarter ago, it was expected that this maker of integrated circuits used for power conversion would post earnings of $0.23 per share when it actually produced earnings of $0.25, delivering a surprise of +8.7%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Power Integrations, which belongs to the Zacks Semiconductors - Power industry, posted revenues of $118.94 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.44%. This compares to year-ago revenues of $115.85 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Power Integrations shares have added about 81.7% since the beginning of the year versus the S&P 500's gain of 13%. While Power Integrations has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Power Integrations was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $125.45 million in revenues for the coming quarter and $1.29 on $474.4 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductors - Power is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Palo Alto Networks (PANW), has yet to report results for the quarter ended July 2026. The results are expected to be released on September 1. This security software maker is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +2.1%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. Palo Alto Networks' revenues are expected to be $3.35 billion, up 32.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue increased ten percent sequentially to $118.9 million; GAAP earnings were $0.17 per diluted share; non-GAAP earnings were $0.37 per diluted share Cash flow from operations was $22.0 million SAN JOSE, Calif., August 05, 2026--(BUSINESS WIRE)--Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended June 30, 2026. Revenue for the second quarter was $118.9 million, up ten percent from the prior quarter and up three percent from the second quarter of 2025. GAAP net income for the second quarter was $9.8 million or $0.17 per diluted share compared to $0.06 per diluted share in the prior quarter and $0.02 per diluted share in the second quarter of 2025. Cash flow from operations for the second quarter was $22.0 million. In addition to its GAAP results, the company provided certain measures not calculated according to GAAP. Non-GAAP results exclude stock-based compensation, amortization of acquisition-related intangible assets, accrual for a judgment in a legal matter, a restructuring charge recognized in the first quarter of 2026 and the tax effects of these items. Non-GAAP net income for the second quarter of 2026 was $20.9 million or $0.37 per diluted share compared to $0.25 per diluted share in the prior quarter and $0.35 per diluted share in the second quarter of 2025. A reconciliation of GAAP to non-GAAP financial results and outlook is included with the tables accompanying this press release. Power Integrations CEO Jen Lloyd commented: "We delivered strong second-quarter results, highlighted by continued growth in industrial markets, improved profitability, and lower inventories in the distribution channel and on our balance sheet. The demand drivers behind our business remain compelling, as investment in renewable energy, grid infrastructure and AI data centers drives customer demand for higher efficiency, reliability and power density. Our new 2200 V PowiGaN™ technology extends our capabilities in high-voltage GaN and positions us to support customer roadmaps in these markets over the long term." Power Integrations paid a dividend of $0.215 per share on June 30, 2026 to stockholders of record as of May 29, 2026. A dividend of $0.215 per share will be paid on September 30, 2026, to stockholders of record as of August 31, 2026. Financial Outlook The company issued the following outlook for the third quarter of 2026: Revenue is expected to be in a range of $122 million to $130 million. GAAP gross margin is expected to be between 53.3 percent and 54.4 percent, and non-GAAP gross margin is expected to be between 54 percent and 55 percent. GAAP operating expenses are expected to be between $55 million and $56 million, and non-GAAP operating expenses are expected to be between $45 million and $46 million. GAAP operating margin is expected to be between 8.3 percent and 10.9 percent, and non-GAAP operating margin is expected to be between 17 percent and 19 percent. Conference Call Information and Supplemental Materials Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the company's investor web page, http://investors.power.com, along with supplemental materials related to today’s earnings release. About Power Integrations Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission, conversion and consumption of power in applications ranging from milliwatts to megawatts including AI data centers, EVs and energy infrastructure. For more information, please visit www.power.com. Note Regarding Use of Non-GAAP Financial Measures The non-GAAP measures provided in this press release, including non-GAAP earnings per diluted share, non-GAAP net income, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating margin, should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP) in the United States. The non-GAAP financial measures are presented only as supplemental information to understand the Company’s operating results. In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, accrual for a judgment in a legal matter, a restructuring charge recognized in the first quarter of 2026, and the tax effects of these items. The company considers these non-GAAP financial measures to be important because they provide additional insight into the company’s on-going performance; the company uses these measures in its financial and operational decision-making and, with respect to non-GAAP operating income, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, to enable more meaningful and consistent period-to-period comparisons, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools, do not have any standardized meanings and are therefore unlikely to be comparable to similarly titled measures presented by other companies, and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release. Note Regarding Forward-Looking Statements Certain statements included in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and are sometimes accompanied by words such as "believe," "continue," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "predict," "plan," "may," "should," "will," "would," "potential," "seem," "seek," "outlook," and similar expressions that concern the Company’s expectations, strategy, priorities, plans, or intentions, predict or indicate future events or trends, or that are not statements of historical matters. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking statements in this press release include, without limitation, the Company’s outlook for the third quarter of 2026, the trends and assumptions underlying such outlook, including the continuation of growth and demand drivers, the Company's expectations regarding new technology, and the Company’s anticipated upcoming dividend, including the timing and amount of such dividend, among others. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are very difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond the control of the Company. The Company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risks that the demand drivers behind the Company’s business may not continue to the extent anticipated, or at all; (ii) the risks that the investments in renewable energy, grid infrastructure, and AI data centers may not drive Company customer demand to the extent or in the time frame anticipated, or at all; (iii) the risks that the Company’s new 2200 V PowiGaN™ technology may not extend the Company’s capabilities in high-voltage GaN nor position the Company to support customer roadmaps over the long term to the extent or in the time frame anticipated, or at all; (iv) the risks that the Company may not be in a position to pay the $0.215 per share dividend on September 30, 2026 as currently anticipated due to unforeseen circumstances; (v) the Company’s ability to forecast its performance; (vi) changes in trade policies, in particular the escalation and imposition of new and higher tariffs, which could reduce demand for end products that incorporate the Company's integrated circuits and/or place pressure on the Company's prices as the Company's customers seek to offset the impact of increased tariffs on their own products; (vii) the Company’s ability to supply products and its ability to conduct other aspects of its business, such as competing for new design wins; (viii) changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts, and trade negotiations, which may impact the level of demand for the Company’s products; (ix) potential changes and shifts in customer demand away from end products that utilize the Company's integrated circuits to end products that do not incorporate the Company's products; (x) the effects of competition, which may cause the Company’s revenue to decrease or cause the Company to decrease its selling prices for its products; (xi) unforeseen costs and expenses, and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates; and (xii) product development delays and defects and market acceptance of the new products. These risks and uncertainties may be amplified by current or future global conflicts and current and potential trade restrictions, trade tensions, and tariffs, all of which continue to cause economic uncertainty. You should carefully consider the foregoing factors and the other risks and uncertainties, including those more fully described in the "Risk Factors" section of the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q that the Company has caused to be filed with the U.S. Securities and Exchange Commission, or the SEC, and other documents filed by the Company or that will be filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release are based only on information currently available to the Company and speak only as of the date they are made. Investors are cautioned not to put undue reliance on forward-looking statements, and the Company disclaims any obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. The Company gives no assurance that the Company will achieve any of its expectations. Power Integrations, PowiGaN and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805518714/en/ Contacts Joe ShifflerPower Integrations, Inc.(408) [email protected]

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the analog semiconductors industry, including Power Integrations (NASDAQ:POWI) and its peers. Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years. The 15 analog semiconductors stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 5.7% above. Luckily, analog semiconductors stocks have performed well with share prices up 11.4% on average since the latest earnings results. A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion. Power Integrations reported revenues of $108.3 million, up 2.6% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and operating income estimates. Interestingly, the stock is up 16.8% since reporting and currently trades at $83.90. Is now the time to buy Power Integrations? Access our full analysis of the earnings results here, it’s free. Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors. Texas Instruments reported revenues of $4.83 billion, up 18.6% year on year, outperforming analysts’ expectations by 6.6%. The business had a stunning quarter with a beat of analysts’ EPS and operating income estimates. Texas Instruments scored the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 26.2% since reporting. It currently trades at $298.22. Is now the time to buy Texas Instruments? Access our full analysis of the earnings results here, it’s free. Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications. Universal Display reported revenues of $142.2 million, down 14.5% year on year, falling short of analysts’ expectations by 11%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations. Universal Display delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $86.90. Read our full analysis of Universal Display’s results here. Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software. Impinj reported revenues of $74.25 million, flat year on year. This number topped analysts’ expectations by 2.4%. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ operating income estimates but an increase in its inventory levels. The stock is up 21.1% since reporting and currently trades at $145.31. Read our full, actionable report on Impinj here, it’s free. Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks. MACOM reported revenues of $289 million, up 22.5% year on year. This print beat analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ operating income estimates. MACOM pulled off the highest guidance raise among its peers. The stock is up 23.6% since reporting and currently trades at $383.05. Read our full, actionable report on MACOM here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Power Integrations, Inc.'s (NASDAQ:POWI) earnings announcement last week didn't impress shareholders. Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Power Integrations has an accrual ratio of -0.16 for the year to March 2026. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of US$85m, well over the US$16.6m it reported in profit. Power Integrations' free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. Check out our latest analysis for Power Integrations That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Power Integrations' profit was reduced by unusual items worth US$18m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. In the twelve months to March 2026, Power Integrations had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be. Considering both Power Integrations' accrual ratio and its unusual items, we think its statutory earnings are unlikely to exaggerate the company's underlying earnings power. After considering all this, we reckon Power Integrations' statutory profit probably understates its earnings potential! So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. In terms of investment risks, we've identified 2 warning signs with Power Integrations, and understanding them should be part of your investment process. Our examination of Power Integrations has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Power Integrations, Inc.? Here are five stocks we like better. Power Integrations posted first-quarter revenue of $108.3 million, up 3% year over year, with industrial revenue rising 23% to drive growth despite weaker consumer demand. Non-GAAP EPS came in at $0.25 per share. The company guided for second-quarter revenue of $115 million to $120 million, implying 8.5% sequential growth at the midpoint, and expects gross margin to improve to 54% to 55%. Management also said order activity has picked up, even as macro uncertainty remains. Management highlighted major growth opportunities in automotive and AI data centers, including progress with EV manufacturers and new GaN-based power designs for higher-voltage data center architectures. The company also said inventory levels and cash flow improved during the quarter. Dividends Meet Chips: Top 3 Semiconductor Stocks for Growth Power Integrations (NASDAQ:POWI) reported first-quarter revenue of $108.3 million, up 3% from a year earlier and 5% sequentially, as growth in industrial markets offset weaker year-over-year consumer sales tied to last year’s appliance-related inventory pull-ins. CEO Jen Lloyd said the company delivered a “solid start to the year,” with non-GAAP earnings of $0.25 per diluted share. Industrial revenue was again the primary growth driver, rising 23% year over year and 15% from the fourth quarter. Consumer revenue increased 17% sequentially as appliance inventory built ahead of tariffs appeared to have cleared, but remained down from an unusually strong prior-year quarter. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% American Superconductor faster than a speeding bullet on EPS beat “Looking ahead, while visibility is somewhat hampered by the ongoing macro uncertainty, we’ve seen an increase in order activity since our last earnings call,” Lloyd said, adding that the company expects seasonally higher second-quarter revenue and higher gross margin. CFO Nancy Erba said Power Integrations expects second-quarter revenue of $115 million to $120 million, representing an 8.5% sequential increase at the midpoint. Communications and computer markets are expected to show the largest percentage increases after seasonal weakness in the first quarter, while industrial revenue is also expected to rise. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Power Integrations Stock Can Power Your Portfolio Consumer revenue is expected to be “flat to slightly up,” Erba said during the Q&A session, with normal air-conditioning seasonality offset by continued weakness in major appliances. The company guided for non-GAAP gross margin of 54% to 55% in the second quarter, up from 53.5% in the first quarter. Erba said the expected improvement reflects manufacturing efficiencies, volume-related benefits from higher revenue and the dollar-yen exchange rate. Non-GAAP operating expenses are expected to be about $47 million, plus or minus $500,000, mainly due to annual merit increases that took effect in April. → Years in the Making, AMD’s Upside Movement Has Just Begun Erba said non-GAAP operating margin is expected to be between 13.5% and 15.5% in the second quarter. She added that operating expenses in the second half are expected to remain roughly flat with the second-quarter run rate, putting the company on track for low single-digit expense growth in 2026. Lloyd said Power Integrations is making progress on strategic priorities including customer centricity, faster time to market and operational efficiency. The company recently appointed Mike Balow as senior vice president of worldwide sales. Lloyd said Balow, who previously led sales organizations at onsemi, Infineon and Cypress, is expected to help strengthen customer relationships and expand the company’s reach in markets such as data center and automotive. The company highlighted new product momentum from TinySwitch-5 and TOPSwitchGaN. Lloyd said TinySwitch-5 has a range of designs set to ramp in the second half, while TOPSwitchGaN, introduced at the APEC show in March, is expected to broaden the reach of the company’s flyback architecture. Lloyd said the addition of a PowiGaN switch more than doubles the TOPSwitch architecture’s power capability to 440 watts, allowing flyback designs to address sockets that historically required more complex topologies. She said TOPSwitchGaN is opening opportunities with customers designing high-power chargers for industrial applications, drones and e-bikes, as well as with appliance customers seeking the efficiency benefits of gallium nitride. In automotive, Lloyd said Power Integrations is in production or design engagements with 17 of the top 20 electric-vehicle manufacturers and remains on track to double automotive revenue this year. The company won a new emergency power supply design with China’s second-largest EV OEM during the quarter and began production at a major German automaker using a platform developed through its joint venture with a U.S. EV OEM. Lloyd said the company still sees a path toward a previously stated $100 million automotive revenue target for 2029, though she noted that revenue growth has been slow and some opportunities have pushed out. Power Integrations continued to emphasize data centers as a major long-term growth opportunity. Lloyd said the company’s collaboration with NVIDIA includes sockets using its 1,250-volt and 1,700-volt GaN technologies in future 800-volt DC architectures. She also said Power Integrations won two new auxiliary power supply designs in the first quarter at Taiwan customers serving U.S. equipment makers. During the Q&A session, Lloyd said auxiliary power and solid-state transformer opportunities are nearer-term, while higher-voltage GaN opportunities tied to 800-volt architectures are “a couple years out.” She said the company is engaging across hyperscalers, server OEMs, rack providers and power supply providers. Lloyd also said the company sees opportunities beyond the rack, including power grid applications tied to data center growth. Renewable energy, battery storage and high-voltage transmission accounted for about 40% of high-power revenue in the first quarter, according to the company. Power Integrations estimates its data center serviceable available market, including rack and grid applications, will exceed $1 billion by 2030. Power Integrations generated $20 million in operating cash flow and $18 million in free cash flow during the quarter. Capital expenditures were $2 million, and Erba said the company’s 2026 plan still calls for capital spending of 5% to 6% of revenue, weighted more heavily toward the second half of the year. Inventory declined by $4 million during the quarter, while days on hand fell by 21 days to 292. Erba said the company’s target is to reduce days on hand below 200. Channel inventory fell by half a week to 8.9 weeks, nearing the company’s eight-week target. Erba said the company is not taking “anything unnatural” to reduce channel inventory, but expects further improvement if demand continues. On internal inventory, she said management is applying stricter review and return-on-investment discipline. GAAP results included $6.6 million in restructuring charges, primarily severance payments related to restructuring announced in February. Erba said the company also reclassified certain application engineering resources from marketing to research and development to better align product development with customer requirements. Lloyd closed the call by saying electrification, AI and changes in the power grid are expected to support demand for advanced high-voltage semiconductors for years to come. Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company's products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers. The firm's product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion. The article "Power Integrations Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.