Companies /Technology

Power Integrations Inc

NASDAQ: POWI Semiconductors
$50.45
▼ $0.09 (−0.18%) today
Markets closed · 4:42pm ET

Q1 2026 Earnings

Reported May 7, 2026, 4:08pm ET · SEC source
$0.25
Beat +10.96%
EPS · est. $0.23
$108.3M
Beat +1.51%
Revenue · est. $106.7M
+3.5%
Beating market
POWI vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%+9%May 7May 8report 4:08pm ETearnings+0.8%+1.9%
0+3%+6%+9%May 7May 8earnings+0.8%+1.9%
POWI +1.9%S&P 500 +0.8%
0+3%+6%+9%May 7May 8report 4:08pm ETearnings+2.3%+1.9%
0+3%+6%+9%May 7May 8earnings+2.3%+1.9%
POWI +1.9%NASDAQ +2.3%
−4%0+4%+8%May 6May 15report 4:08pm ETearnings+1.2%+0.7%
−4%0+4%+8%May 6May 15earnings+1.2%+0.7%
POWI +0.7%S&P 500 +1.2%
−4%0+4%+8%May 6May 15report 4:08pm ETearnings+2.2%+0.7%
−4%0+4%+8%May 6May 15earnings+2.2%+0.7%
POWI +0.7%NASDAQ +2.2%
+2.02%
Day of report
+1.45%
Next session
−0.05%
One week
+1.84%
30 days

S&P 500 over the same 30 days: −1.65%.

Did POWI Beat Earnings? Q1 2026 Results

Power Integrations opened fiscal 2026 on a quietly constructive note, posting first-quarter revenue of $108.31 million, up 2.6% year-over-year, and non-GAAP EPS of $0.25, ahead of the $0.23 consensus estimate by roughly 11%. The headline story was the industrial segment, which surged 23% year-over-year to represent 41% of the revenue mix, up from 34% a year ago, with renewable energy, battery storage, and home automation all contributing to the gain. That strength helped offset GAAP earnings pressure from $6.57 million in restructuring charges tied to workforce reductions, which compressed GAAP operating income to just $1.45 million and pushed GAAP EPS to $0.06 from $0.15 a year ago. Non-GAAP gross margin also narrowed to 53.5% from 55.9%, a sign that margin recovery remains a work in progress. Management guided Q2 revenue to $115 million to $120 million, with non-GAAP operating margin expected to improve meaningfully to 13.5% to 15.5% as restructuring charges roll off, even as tariff uncertainty and geopolitical risk cloud the demand outlook.

Key Takeaways
  • Industrial revenue grew 23% year-over-year, driven by renewable energy, battery storage, home automation, and automotive applications
  • Industrial mix rose to 41% of revenue from 34% a year ago
  • Revenue up 5% sequentially and 3% year-over-year

“Q1 was a good quarter for Power Integrations as we saw improved market demand while remaining focused on delivering innovative solutions based on our customers' needs. Our industrial revenue grew 23 percent year-over-year driven by a breadth of applications including renewable energy, battery storage, home automation and automotive.”

Power Integrations CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, Power Integrations expects revenue of $115 million to $120 million. GAAP gross margin is forecast at 53.5% to 54.5%, with non-GAAP gross margin of 54% to 55%. GAAP operating expenses are expected between $55 million and $56 million, and non-GAAP operating expenses between $46.5 million and $47.5 million. GAAP operating margin is expected at 5.5% to 7.5%, and non-GAAP operating margin at 13.5% to 15.5%. The company highlighted risks from escalating tariffs and geopolitical uncertainty that could reduce demand or pressure pricing.

POWI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$30.0M$60.0M$90.0M$105.5M$108.3MRevenue$58.2M$56.9MGross Profit$6.7M$1.5MOperating Income$8.8M$3.3MNet Income
$0$30.0M$60.0M$90.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.