Earnings

Power Integrations Raises Third-Quarter Sales Outlook

The Tip Desk · August 5, 2026 · 3 min read

The high-voltage power semiconductor maker guided third-quarter revenue to $122 million to $130 million after a 10% sequential sales gain.

Power Integrations (POWI) raised its third-quarter sales outlook after sequential growth accelerated in the quarter ended June 30, 2026, and non-GAAP operating margin widened to 17.1% from 11.7% in the prior quarter.

The company now expects third-quarter 2026 revenue of $122 million to $130 million, above the $115 million to $120 million range it had issued in May for the second quarter. Non-GAAP operating margin is expected at 17% to 19%, versus a 13.5% to 15.5% prior guide. GAAP gross margin is expected between 53.3% and 54.4%, and non-GAAP gross margin between 54% and 55%. GAAP operating expenses are expected at $55 million to $56 million, and non-GAAP operating expenses at $45 million to $46 million. GAAP operating margin is expected between 8.3% and 10.9%.

Second-quarter revenue was $118.9 million, up 10% from the prior quarter after a 5% sequential increase in the first quarter, and up 3% from the second quarter of 2025. GAAP net income was $9.8 million, or $0.17 a share, compared with $0.06 a share in the prior quarter and $0.02 a share a year earlier. GAAP operating income was $8.9 million, versus a $1.3 million operating loss in the year-ago quarter. Non-GAAP net income was $20.9 million, or $0.37 a share, compared with $0.25 a share in the prior quarter and $0.35 a share a year earlier.

GAAP gross margin expanded to 54.3% from 52.6% in the prior quarter; non-GAAP gross margin was 55.1% versus 53.5%. GAAP operating margin widened to 7.5% from 1.3%. Cost of revenue was $54.3 million. Research and development expense was $27.2 million. Selling, general and administrative expense was $28.1 million. Other operating expenses were $0.5 million. Restructuring and related charges were zero in the second quarter after $6.2 million in the first quarter, when the company recorded a February 2026 workforce reduction that cut global headcount by 7%.

Industrial applications accounted for 43% of revenue, up from 41% in the prior quarter. Consumer mix fell to 36% from 38%. Computer was 11% and communications 10%. Chief executive Jen Lloyd said the quarter was highlighted by continued growth in industrial markets, improved profitability, and lower inventories in the distribution channel and on the company’s balance sheet. She said demand drivers remain investment in renewable energy, grid infrastructure and AI data centers, and that new 2200 V PowiGaN technology extends high-voltage GaN capabilities.

Cash flow from operations was $22.0 million. Inventories were $157.8 million at June 30, 2026, down from $166.9 million at year-end 2025. Cash and cash equivalents were $70.6 million and short-term investments $192.0 million. Accounts receivable, net, were $26.8 million.

The company paid a $0.215 a share dividend on June 30, 2026, and said another $0.215 dividend will be paid on September 30, 2026, to stockholders of record as of August 31, 2026.

Power Integrations described its products as building blocks in the clean-power ecosystem for applications from milliwatts to megawatts, including AI data centers, EVs and high-voltage DC infrastructure. The third-quarter outlook implies further sequential revenue growth from the $118.9 million second-quarter result and a non-GAAP operating-margin band that sits at or above the 17.1% achieved in the quarter just reported.

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