Power Integrations (POWI) Q1 2026 Earnings
How Did POWI Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: −1.65%.
Did POWI Beat Earnings? Q1 2026 Results
Yes. Power Integrations reported Q1 2026 earnings of $0.25 a share on May 7, 2026, beating the $0.23 consensus estimate by 11.0%. Revenue was $108.3M against a $106.7M estimate.
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.
- 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
What Was Power Integrations's Outlook in Q1 2026?
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
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $108.3M | $105.5M | +2.6% |
| Gross Profit | $56.9M | $58.2M | −2.2% |
| Operating Income | $1.5M | $6.7M | −78.4% |
| Net Income | $3.3M | $8.8M | −62.5% |
Figures from SEC filings and company reports. Not investment advice.