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Power Integrations, Inc.
$2.8B
Market Cap
91.1
P/E
2.30
PEG
4.7%
ROCE
3.1%
ROE
0.03
D/E
4.9%
OPM
-42.9%
% from 52W High
53
α RS
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About

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

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🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED Power Integrations reports Q1 revenue $108.3M, sees Q2 revenue $115M-$120M
Revenue & Profitability
Q1 2026 revenue was $108.3 million, up 3% from a year ago and 5% sequentially. Non-GAAP net income was $13.9 million, or $0.25 per diluted share. Non-GAAP gross margin was 53.5%, up 20 basis points sequentially, and operating margin was 11.7%, up 200 basis points from Q4. The company generated $20 million in cash from operations and $2 million in CapEx. Q2 2026 revenue is guided at $115 million-$120 million, with gross margin of 54%-55% and operating margin of 13.5%-15.5%.
Outlook
Management sees healthy demand in the first half of 2026 but acknowledges macro and geopolitical uncertainty. Data center buildout is a major tailwind, with estimated SAM exceeding $1 billion by 2030 from rack and grid applications. Industrial and automotive are strong, while consumer faces headwinds in major appliances. The company expects Q2 revenue to be seasonally higher, with communications and computers seeing the largest percentage increases, and industrial also up sequentially. Consumer is expected to be sub-seasonal due to ongoing appliance weakness.
Growth Drivers
Key growth levers include data center (aux power, solid-state transformers, high-power GaN for rack AC-DC conversion), automotive (targeting $100 per vehicle over several years, doubling revenue in 2026), and industrial (high-power for renewables, grid, electric rail). New products TinySwitch-5 and TOPSwitchGaN are ramping in H2 2026, opening sockets in drones, e-bikes, and higher-power chargers. The high-power business in industrial is growing at a healthy pace, with renewables and transmission representing 40% of high-power revenue.
Balance Sheet & CapEx
Q1 2026 CapEx was $2 million. The full-year plan calls for CapEx of 5%-6% of revenue, weighted more heavily to the second half. Inventory management is a priority, with days on hand at 292 (target below 200) and channel inventory at 8.9 weeks (target 8 weeks). The company is applying ROI-based discipline to capital decisions.
Margins
Q1 2026 non-GAAP gross margin was 53.5%, up 20 basis points sequentially. Q2 gross margin is guided to 54%-55%, driven by manufacturing efficiencies, volume benefits, and favorable yen-dollar exchange rate. Non-GAAP OpEx in Q1 was $45.3 million (below guidance), with Q2 OpEx expected at $47 million ± $500,000 due to annual merit increases. The company targets OpEx growth at less than half of revenue growth over time. Q2 operating margin is guided at 13.5%-15.5%, improving from 11.7% in Q1.
Key Risks
Management flagged macro and geopolitical uncertainty as ongoing risks, along with tariff-related pull-ins in appliances and the yen-dollar exchange rate impact (with a one-year lag). Consumer segment faces headwinds in major appliances, leading to a sub-seasonal Q2. Inventory days remain high at 292 (target below 200), though improving. The company also faces risks from the timing of data center and automotive revenue ramp-ups, with some opportunities pushed out.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Q2 revenue grew 10% sequentially and 3% year-over-year, with margin expansion and strong cash flow. Industrial and automotive segments led growth, while new high-voltage GaN technology and design wins position the company for future opportunities in data center, energy, and EV markets.
Q1 2026 Q1 2026 2026-05-07
Q1 revenue grew 3% year-over-year to $108.3 million, led by industrial and sequential consumer recovery. Outlook for Q2 is strong, with revenue expected to rise 8.5% sequentially and gross margin to improve, driven by growth in industrial, data center, and automotive markets.
Q4 2025 Q4 2025 2026-02-05
Q4 revenue was $103M with non-GAAP EPS of $0.23; full-year revenue grew 6% and EPS rose 8%. Industrial and GaN products drove growth, while a 7% workforce reduction aims to align costs. Outlook for 2026 is cautious but optimistic, with focus on industrial, data center, and automotive.
Q3 2025 Q3 2025 2025-11-05
Q3 revenue grew 3% sequentially to $119M, led by industrial and high-power segments, while consumer declined due to appliance softness and inventory adjustments. Q4 revenue is expected to fall to $100–$105M, with normalization in consumer and growth in AI data center and automotive markets anticipated in 2026.
Q2 2025 Q2 2025 2025-08-06
Q2 revenue grew 9% year-over-year to $116M, driven by industrial and GaN product strength, while consumer appliances faced tariff-related headwinds. Guidance for Q3 is $118M ±$5M, with continued focus on innovation, high-voltage GaN, and expansion in data center and automotive markets.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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