Power Integrations

Power Integrations reported Q2 FY2026. EPS came in at $0.37 against a $0.32 consensus, beat by 15.6%. Revenue was $118.9M versus $117.4M expected, beat by 1.3%. Gross margin was 54.3%, up 170 bps from last quarter.

Power Integrations reported a modest beat on both revenue and earnings for Q1 FY2026, with revenue of $108.3 million and EPS of $0.25, beating estimates by 1.5% and 8.7%, respectively. The company's outlook for Q2 and its long-term growth projections in automotive and data center segments suggest a continued focus on high-margin opportunities.

Power Integrations did not deliver a demand beat, with Q4 revenue only +0.1% above Street, but the market risks over-penalizing the -13.2% sequential revenue drop because the forward setup now combines Q1 revenue of $104 million to $109 million, non-GAAP gross margin of 53% to 54%, and documented GaN/design-win momentum. The variant view is that the print is not a cyclical acceleration story yet; it is a mix-quality story where 2025 design win value grew 10% and PowiGaN revenue grew more than 40% even as reported revenue stayed near $103.2 million.

Power Integrations cleared Q3 estimates on revenue and EPS, yet the actionable signal is the disconnect between a +6.9% revenue surprise and guidance for a sharp Q4 reset tied to consumer and appliance orders. The market may be over-crediting the beat as a demand inflection when the print instead shows a company buying time with cash returns while its higher-voltage GaN roadmap remains a late 2026 revenue story, not a Q4 buffer.

The market was set up for modest earnings leverage, but Power Integrations delivered a revenue miss and guided only to $118 million, plus or minus $5 million. The variant view is that the print should not be bought on the $0.35 EPS beat alone: the company is protecting margins and shrinking the share count, but the operating story still depends on industrial and GaN growth outrunning appliance softness that management explicitly says is still in the way.