The beat-and-raise quarter with accelerating industrial momentum and improving margins is a clear positive. However, the historical T+20 win rate on POWI calls is only 25%, and the stock may have already priced in some of this upside. Watch for follow-through on Q3 guidance execution and any tariff-related headwinds in the forward-looking statements.
Price Chart
Executive Summary
Power Integrations reported Q2 2026 revenue of $118.9M (up 3% YoY) and non-GAAP EPS of $0.37, beating consensus estimates of $0.32 by 15.8%. The company guided Q3 revenue to $122-130M, above the $117.4M consensus, driven by continued strength in industrial markets (43% of revenue) and improving profitability. However, GAAP EPS of $0.17 was depressed by $11.3M in stock-based compensation and restructuring charges, and the T+20 historical win rate on POWI calls is only 25%, suggesting caution on upside follow-through.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $118.9M, up 3% YoY and 10% sequentially
- Non-GAAP EPS $0.37 beat consensus $0.32 by 15.8%
- Q3 revenue guidance $122-130M, midpoint $126M above $117.4M consensus
- Industrial revenue grew to 43% of total mix, up from 40% YoY
- Operating cash flow $22.0M; free cash flow $35.7M YTD
- GAAP net income $9.8M vs $1.4M in prior year quarter
- Dividend maintained at $0.215/share, payable Sept 30
Financial Impact
Revenue beat of $1.5M (1.3%) vs consensus; EPS beat of $0.05 (15.8%) vs consensus
Risk Factors
- Tariff escalation could pressure customer demand and pricing
- Stock-based compensation ($11.3M) and restructuring charges continue to depress GAAP earnings
- Historical T+20 performance on POWI calls shows poor follow-through (25% win rate)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000833640-26-000141 |
| Document: powi-20260805.htm | 0000833640-26-000141 |
| Document: 0000833640-26-000141-index-headers.html | 0000833640-26-000141 |
| Document: 0000833640-26-000141-index.html | 0000833640-26-000141 |
| Document: 0000833640-26-000141.txt | 0000833640-26-000141 |
| 8-K Data (Synthetic) | 0000833640-26-000141 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $58.98 $50.54 | ▼ −14.31% | ▼ −14.91% | $54.46 (−7.66%) |
Jun 2, 2026 17w ago | Insider Cluster | $84.19 $80.27 | ▲ +4.66% | ▲ +3.09% | $54.46 (+35.31%) |
May 29, 2026 17w ago | Insider Cluster | $81.91 $83.76 | ▼ −2.26% | ▼ −3.56% | $54.46 (+33.51%) |
May 28, 2026 18w ago | Insider Cluster | $84.00 $78.96 | ▼ −6.00% | ▼ −4.21% | $54.46 (−35.17%) |
Apr 21, 2026 23w ago | DEFA14A | $71.73 $68.28 | ▼ −4.81% | ▼ −7.98% | $54.46 (−24.08%) |
US Market Status
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