Power Integrations Stock Earnings Reports

Power Integrations reported Q1 revenue of $108.3M (up 3% YoY, +5% QoQ) and non-GAAP EPS of $0.25. Industrial was the primary growth driver (industrial +23% YoY; industrial sequential growth +15%), while consumer recovered sequentially (+17% QoQ) after prior pull-ins. Non-GAAP gross margin was 53.5%; non-GAAP operating margin was 11.7%. Cash flow from operations was $20M, free cash flow $18M, and inventory declined (days on hand down 21 days to 292; channel inventory ~8.9 weeks). Management gave Q2 revenue guidance of $115M–$120M (midpoint ~+8.5% QoQ) and expects gross margin to improve to 54%–55% and non-GAAP operating margin of 13.5%–15.5%. They highlighted strategic execution: tighter commercial/R&D alignment, a recent SVP Worldwide Sales hire (Mike Balow), and a restructuring that shifted technical application engineers into R&D to accelerate time to market. Product momentum includes TinySwitch-5 and TOPSwitchGaN/TOPGaN (PowiGaN) ramp prospects; traction in automotive (engagements with 17 of top 20 EV OEMs; target to double automotive revenue this year and long-term per-vehicle content rising toward ~$100), high-power industrial wins (e.g., 6 MW wind turbine design; STATCOM), and multiple data center engagements (aux power, rack-level AC→DC and high-voltage GaN for 800V+ architectures). Management sees data center-related SAM (rack + grid) exceeding $1B by 2030 and emphasized disciplined OpEx and CapEx management (2026 CapEx target ~5%–6% of revenue, weighted to H2). Overall tone: cautious near-term given macro/geopolitics, but optimistic on multi-year growth driven by PowiGaN, SCALE gate drivers, automotive, industrial/high-power, and data center opportunities.