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Earnings analysis · 10-Q

POWI earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

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…

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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 currency impacts.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

55% Gross margin Operating margin Nov 2023 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $48 Operating expenses $51 Left as operating profit $1

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Nov 2023 May 2026

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
$0.25
Segment
Industrial

What stood out

  • Revenue Growth

    Q1 2026 revenue was $108.3 million, up from $105.5 million in Q1 2025, marking a 2.6% increase.

  • EPS Surprise

    Reported EPS of $0.25 exceeded estimates of $0.20 with a surprise of 25%.

  • Segment Growth

    Industrial segment showed growth, contributing to overall revenue increases.

  • Strong Cash Position

    Cash increased to $257.2 million, reflecting a $7.7 million rise from December 2025.

  • Reduced Operating Costs

    Despite restructuring, SG&A expenses decreased to $24.4 million from $27.4 million year-over-year.

  • Dividend Returns

    $12.0 million was returned to shareholders through dividends during the quarter.

What to watch

  • Declining Gross Margin

    Gross margin fell to 52.6% in Q1 2026 from 55.2% in Q1 2025, driven by restructuring costs.

  • High Operating Expenses

    Operating expenses rose to $55.5 million, up from $51.5 million, mainly due to restructuring costs.

  • Economic Uncertainty

    Ongoing macroeconomic risks, including inflation and geopolitical tensions, may impact future sales.

Management's outlook

Q2 revenue is expected between $115 million and $120 million.

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…

10-K · February 7, 2025

Power Integrations emphasizes growth via SAM expansion (now ~ $4.0 billion) and a GaN-based product roadmap (InnoMux-2 rated at 1700 volts; BridgeSwitch-2 extended to ~1 horsepower/746 W). The company acquired the…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.