Power Integrations Q3 2026: EPS Beats by 11%, Cost Cuts Drive Profit Surge

Power Integrations delivered adjusted earnings of $0.46 per share in the third quarter of 2026, beating the $0.415 consensus estimate by nearly 11%. That beat extended the company's streak of clearing EPS estimates to five consecutive quarters, and it was the largest upside surprise during that run.

The profit outperformance came from a dramatic pullback in costs rather than the top line. GAAP operating expenses fell to $50.6 million from $68.8 million in the year-ago period, which had been weighed down by transition costs for the former CEO and litigation charges. GAAP gross margin also widened, to 55.6% from 54.5% a year earlier, while operating income rose 85% year over year to $19.1 million.

Revenue came in at $125.5 million, a hair below the $126.0 million Wall Street had expected but up roughly 5.5% from a year ago and enough to mark a two-year high for the company. Industrial end markets, which accounted for 43% of quarterly revenue, were the primary growth engine, with industrial revenue up 13% year-to-date. PowiGaN gallium-nitride products drove a 5% sequential increase in the top line.

Looking ahead, management guided fourth-quarter revenue of $118.0 million to $126.0 million, with non-GAAP operating margin expected in a range of 19% to 21%. The midpoint of that revenue range sits below Q3 levels, a note of caution heading into the final quarter. On the capital return front, Power Integrations plans to raise its quarterly dividend to $0.22 per share for each of the four quarters of 2027, up from the current $0.215.