Power Integrations (NASDAQ:POWI) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Power Integrations (NASDAQ:POWI) issued its quarterly earnings data on Wednesday. The semiconductor company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05, FiscalAI reports. The firm had revenue of $118.94 million during the quarter, compared to analyst estimates of $117.44 million. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.The business’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.35 EPS.

Here are the key takeaways from Power Integrations’ conference call:

• Q2 revenue rose 10% sequentially to $118.9 million, with growth across all four end-market categories; non-GAAP operating margin expanded to 17.1% and free cash flow reached $18 million.
• Industrial revenue grew 14% in Q2 and 16% year-to-date, while automotive revenue is on track to double in 2026. The company also cited new automotive GaN and utility-scale battery-storage design wins.
• Power Integrations expects Q3 revenue of $122 million to $130 million, with communications, computer, and industrial sales continuing to grow; it now expects full-year non-GAAP operating expenses to decline by low single digits.
• Channel inventory declined to 7.3 weeks, returning to management’s targeted healthy range, while the company expects further inventory reductions in the second half and believes its supply-chain structure could support customer upside.
• The demonstrated 2,200-volt PowiGaN technology strengthens the company’s long-term data-center, automotive, and infrastructure roadmap, but management said meaningful products and revenue are likely several years away; near-term data-center revenue is expected primarily from auxiliary-power designs around 2028.

Power Integrations Price Performance

POWI traded down $2.62 on Wednesday, reaching $61.95. 796,504 shares of the stock were exchanged, compared to its average volume of 702,161. The company’s 50-day moving average price is $74.56 and its 200 day moving average price is $61.89. Power Integrations has a fifty-two week low of $30.86 and a fifty-two week high of $91.18. The firm has a market capitalization of $3.45 billion, a PE ratio of 206.51 and a beta of 1.58.

Power Integrations Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were given a dividend of $0.215 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $0.86 dividend on an annualized basis and a yield of 1.4%. Power Integrations’s payout ratio is currently 286.67%.

Wall Street Analyst Weigh In

POWI has been the subject of a number of research analyst reports. Weiss Ratings reiterated a “sell (d+)” rating on shares of Power Integrations in a research note on Friday, May 8th. Zacks Research lowered Power Integrations from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Power Integrations in a report on Friday, May 8th. Stifel Nicolaus increased their price objective on shares of Power Integrations from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Finally, Needham & Company LLC initiated coverage on shares of Power Integrations in a research note on Wednesday, June 10th. They issued a “buy” rating and a $90.00 target price for the company. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $76.20.

Key Stories Impacting Power Integrations

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Power Integrations earned $0.37 per share, exceeding the $0.32 consensus estimate and improving from $0.35 a year earlier. Revenue of $118.94 million also topped expectations of $117.44 million, while sales increased 2.6% year over year. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management said inventory levels improved, which could support healthier operations and reduce working-capital pressure. Power Integrations Q2 Beats on Revenue, Inventory Levels Improve
• Positive Sentiment: The company demonstrated what it called the world’s first 2,200-volt gallium-nitride technology, highlighting a potential long-term opportunity in high-voltage power systems and next-generation infrastructure. Power Integrations Demonstrates 2200 V GaN Technology
• Neutral Sentiment: Third-quarter revenue guidance of $122 million to $130 million brackets the $125.6 million analyst consensus, suggesting results may be broadly in line rather than signaling a major acceleration. Power Integrations Earnings and Guidance
• Negative Sentiment: Despite the earnings beat, quarterly revenue growth remained limited and the company’s elevated valuation leaves little room for disappointing guidance or evidence of slower demand. Investors may therefore be looking for stronger forward growth than the current outlook provides. Power Integrations Q2 2026 Earnings Call Transcript

Insider Buying and Selling

In other Power Integrations news, VP Sunil Gupta sold 6,860 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $83.67, for a total transaction of $573,976.20. Following the completion of the transaction, the vice president directly owned 64,379 shares of the company’s stock, valued at approximately $5,386,590.93. This trade represents a 9.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Balu Balakrishnan sold 124,287 shares of Power Integrations stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $86.44, for a total transaction of $10,743,368.28. Following the sale, the director owned 279,516 shares of the company’s stock, valued at approximately $24,161,363.04. The trade was a 30.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 334,772 shares of company stock valued at $27,322,535 over the last quarter. 1.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in POWI. Baird Financial Group Inc. boosted its holdings in Power Integrations by 5.4% in the first quarter. Baird Financial Group Inc. now owns 5,053 shares of the semiconductor company’s stock valued at $255,000 after purchasing an additional 261 shares during the last quarter. Royal Bank of Canada raised its stake in shares of Power Integrations by 5.0% during the 1st quarter. Royal Bank of Canada now owns 75,792 shares of the semiconductor company’s stock valued at $3,827,000 after buying an additional 3,622 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Power Integrations by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,680 shares of the semiconductor company’s stock valued at $1,701,000 after buying an additional 1,461 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Power Integrations by 14.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 572,360 shares of the semiconductor company’s stock valued at $28,904,000 after buying an additional 74,107 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Power Integrations by 15.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 174,754 shares of the semiconductor company’s stock valued at $8,825,000 after buying an additional 23,389 shares during the period.

Power Integrations Company Profile

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.