10-Q · May 7, 2026
Power Integrations reported Q1 2026 revenues of $108.3 million, exceeding estimates and previous year results. EPS came in at $0.25, surpassing expectations, but gross margins decreased due to restructuring costs and…
Earnings analysis · 10-Q
POWI earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Power Integrations delivered Q3 revenue of $125.476 million, up approximately 5% sequentially and 5.4% year over year, while GAAP diluted EPS improved to $0.32 from $0.17 in Q2 and negative $0.02 a year earlier.…
Read full summary
Power Integrations delivered Q3 revenue of $125.476 million, up approximately 5% sequentially and 5.4% year over year, while GAAP diluted EPS improved to $0.32 from $0.17 in Q2 and negative $0.02 a year earlier. Management provided Q4 revenue guidance of $118.0 million-$126.0 million and projected GAAP operating margin of 10.0%-12.0%, but the filing excerpt does not establish whether the outlook was raised or lowered. International concentration, a 7% workforce reduction, and a $9.15 million litigation verdict remain significant risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.32
What stood out
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Revenue rebounded
Q3 revenue was $125.476 million, up approximately 5% sequentially from $119 million in Q2 2026 and approximately 5.4% year over year from $119 million in Q3 2025.
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Earnings improved sharply
GAAP diluted EPS was $0.32 versus $0.17 in Q2 2026 and negative $0.02 in Q3 2025. Non-GAAP EPS was $0.46, above the $0.38 consensus estimate.
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Q4 outlook provided
Q4 2026 revenue guidance is $118.0 million-$126.0 million, with expected GAAP gross margin of 54.0%-55.0% and GAAP operating margin of 10.0%-12.0%.
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Controls remained effective
Management stated that disclosure controls and procedures were effective as of September 30, 2026, and reported 0 material changes to internal control over financial reporting during the quarter.
What to watch
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International and trade exposure
The company disclosed that approximately 98% of revenue was generated outside the U.S. in each of 2025, 2024, and 2023, exposing results to tariffs, export controls, geopolitical disruption, and currency movements.
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Restructuring execution risk
The February 2026 reduction in force affected approximately 7% of the global workforce. The company stated that anticipated savings may not be fully realized and that additional workforce reductions could be required.
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Litigation costs remain material
A wrongful-termination lawsuit produced a $9.15 million adverse jury verdict in 2025, plus significant additional costs; the filing warns that future litigation could require further payments or restrict business operations.
Management's outlook
The filing materials do not establish a change versus the prior outlook. Management provided Q4 2026 revenue guidance of $118.0 million-$126.0 million, GAAP gross margin guidance of 54.0%-55.0%, and GAAP operating margin guidance of 10.0%-12.0%.
Earlier filings 4
10-K · February 6, 2026
Power Integrations emphasizes expanding addressable market and a GaN-based product roadmap (InnoMux-2 rated at 1700 volts; BridgeSwitch-2 extended to ~746 watts) and completed the Odyssey Semiconductor asset acquisition…
10-Q · November 5, 2025
Power Integrations reported net revenues of $118,919 thousand for Q3 (three months ended September 30, 2025), up $3,082 thousand versus $115,837 thousand in Q3 2024, with gross profit of $64,851 thousand (≈54.5%). GAAP…
10-Q · August 6, 2025
Power Integrations reported Q2 2025 revenue of $115,852,000, up $9,654,000 (9.1%) versus Q2 2024, with gross profit rising to $63,954,000 (55.2% of revenue). Despite revenue and gross-margin improvement, the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.