Power Integrations (NASDAQ:POWI) Issues Quarterly Earnings Results

Power Integrations (NASDAQ:POWI) released its quarterly earnings results on Thursday. The semiconductor company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.19 by $0.04, Zacks reports. Power Integrations had a net margin of 4.98% and a return on equity of 5.09%. The business had revenue of $103.20 million for the quarter, compared to the consensus estimate of $103.02 million. During the same period in the prior year, the company posted $0.30 earnings per share. Power Integrations’s revenue was down 1.9% compared to the same quarter last year.

Here are the key takeaways from Power Integrations’ conference call:

• Overall results were broadly in line with expectations — Q4 revenue $103M, non-GAAP EPS $0.23, full-year revenue +6%, non-GAAP EPS +8%, and $112M cash from operations.
• Management carried out a cost-focused restructuring, reducing the global workforce by ~7% (GAAP restructuring charge of $3.5–4M) and cutting non-GAAP OpEx to create flexibility for higher-priority investments.
• Bookings improved significantly in Q4, channel weeks fell to ~9.4 weeks, and management guided to $104–109M revenue in Q1 while calling industrial the fastest-growing market for 2026.
• Strategic shift toward high-growth areas is underway — GaN/PowiGaN revenue rose >40% with multiple design wins across high-power industrial, automotive and data-center auxiliary power that should underpin future growth.
• Near-term risks persist — consumer/appliance demand remains soft due to tariffs and housing weakness, inventory days are elevated (~313 days), and the effective tax rate will rise to roughly 7–8% in 2026 as one-time credits expire.

Power Integrations Price Performance

Power Integrations stock opened at $47.34 on Friday. The business has a 50 day moving average of $40.14 and a 200-day moving average of $41.72. Power Integrations has a 1 year low of $30.86 and a 1 year high of $68.20. The company has a market capitalization of $2.62 billion, a P/E ratio of 121.39, a P/E/G ratio of 5.49 and a beta of 1.37.

Power Integrations Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th will be issued a dividend of $0.215 per share. This represents a $0.86 annualized dividend and a dividend yield of 1.8%. This is an increase from Power Integrations’s previous quarterly dividend of $0.21. The ex-dividend date is Friday, February 27th. Power Integrations’s dividend payout ratio (DPR) is presently 270.97%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on POWI shares. Weiss Ratings restated a “sell (d)” rating on shares of Power Integrations in a research report on Monday, December 29th. Zacks Research cut Power Integrations from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 28th. Susquehanna raised their price objective on Power Integrations from $50.00 to $53.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Finally, Benchmark reaffirmed a “buy” rating and issued a $55.00 price objective on shares of Power Integrations in a report on Friday. Three analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Power Integrations presently has an average rating of “Hold” and an average price target of $61.00.

Insider Transactions at Power Integrations

In related news, VP Gagan Jain sold 1,033 shares of the business’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $33.80, for a total value of $34,915.40. Following the sale, the vice president owned 17,212 shares of the company’s stock, valued at $581,765.60. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Sunil Gupta sold 2,168 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $45.58, for a total value of $98,817.44. Following the completion of the sale, the vice president owned 95,766 shares in the company, valued at $4,365,014.28. This trade represents a 2.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 21,712 shares of company stock worth $977,212. Company insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On Power Integrations

Institutional investors and hedge funds have recently made changes to their positions in the business. Aquatic Capital Management LLC bought a new stake in Power Integrations in the third quarter valued at $348,000. Nomura Holdings Inc. bought a new position in Power Integrations during the 2nd quarter valued at $309,000. Tower Research Capital LLC TRC lifted its position in shares of Power Integrations by 246.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,341 shares of the semiconductor company’s stock worth $410,000 after buying an additional 5,221 shares in the last quarter. Vident Advisory LLC raised its stake in shares of Power Integrations by 32.5% during the 2nd quarter. Vident Advisory LLC now owns 5,750 shares of the semiconductor company’s stock worth $321,000 after purchasing an additional 1,410 shares during the period. Finally, Scott Marsh Financial LLC bought a new stake in shares of Power Integrations in the 2nd quarter worth approximately $338,000.

Key Headlines Impacting Power Integrations

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Q4 results topped estimates and management gave solid near‑term revenue guidance; EPS of $0.23 beat the $0.19 consensus and revenue of $103.2M was roughly in line while Q1 revenue guidance was set at $104M–$109M, supporting the shares. Read More.
• Positive Sentiment: The board raised the quarterly dividend to $0.215 (2.4% increase), maintaining a cash‑return signal that can appeal to income and value investors ahead of the Feb 27 ex‑dividend date.
• Positive Sentiment: Benchmark reaffirmed a “buy” rating and a $55 price target, which implies upside vs. recent levels and may attract momentum buyers. Read More.
• Positive Sentiment: Management announced a cost‑reduction program (about a 7% workforce reduction) and a renewed focus on industrial end‑market growth — a near‑term restructuring charge but potentially margin‑accretive over time. Read More.
• Neutral Sentiment: Board and leadership filings (including indemnification items) were disclosed; these are procedural for now and carry no immediate financial impact unless followed by further governance developments. Read More.
• Negative Sentiment: Insider selling: several executives and a director disclosed stock sales in early February (notable blocks by a director and VPs). Persistent insider selling can be perceived negatively even if for diversification or tax reasons. Read More.
• Negative Sentiment: Inventory levels increased in the quarter, raising a modest demand/mix concern that could pressure near‑term margins if channel conditions don’t normalize. Read More.

About Power Integrations

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company’s products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm’s product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.