Power Integrations (NASDAQ:POWI) Releases Earnings Results

Power Integrations (NASDAQ:POWI) released its quarterly earnings data on Thursday. The semiconductor company reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.04, Zacks reports. Power Integrations had a return on equity of 4.49% and a net margin of 4.03%.The business had revenue of $103.20 million during the quarter, compared to analyst estimates of $103.02 million. During the same quarter last year, the business posted $0.30 EPS. The company’s revenue was down 1.9% on a year-over-year basis.

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

NASDAQ POWI traded down $2.62 on Friday, hitting $44.59. The company had a trading volume of 165,432 shares, compared to its average volume of 902,837. The company’s fifty day moving average price is $39.86 and its 200-day moving average price is $41.77. The company has a market capitalization of $2.47 billion, a PE ratio of 142.56, a PEG ratio of 5.49 and a beta of 1.37. Power Integrations has a 12-month low of $30.86 and a 12-month high of $68.20.

Power Integrations Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, February 27th will be issued a $0.215 dividend. This represents a $0.86 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Friday, February 27th. This is a boost from Power Integrations’s previous quarterly dividend of $0.21. Power Integrations’s payout ratio is presently 270.97%.

Key Headlines Impacting Power Integrations

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

• Positive Sentiment: Q4 results beat expectations — EPS $0.23 vs. $0.19 estimate and revenue roughly in line at $103.2M; company issued Q1 revenue guidance of $104M–$109M (around consensus), and commentary emphasized industrial growth, which helped lift sentiment. Power Integrations beats Q4 expectations, shares rise on solid guidance
• Positive Sentiment: Dividend raised — board approved a quarterly dividend of $0.215/share (2.4% increase vs prior $0.21), with ex-dividend on Feb 27 and payment Mar 31; supports income investors and signals cash-return confidence.
• Positive Sentiment: Analyst reaffirmation — Benchmark Co. reaffirmed a “buy” rating and set a $55 price target (~16.5% upside vs recent price), which can attract momentum and buy-side interest. Benzinga
• Positive Sentiment: Restructuring and cost focus — company announced a workforce reduction (~7%) and new cost measures intended to improve margins and accelerate profit recovery, a near-term headwind but potentially positive for longer-term profitability. Power Integrations outlines industrial growth and new cost focus as restructuring reduces workforce by 7%
• Neutral Sentiment: Corporate/leadership items — filings note board actions including indemnification agreements and leadership-related notices; watch for any follow-ups but no immediate financial impact flagged. Power Integrations Announces Leadership Changes and Profit Recovery
• Negative Sentiment: Insider selling — several insiders (VPs and a director) disclosed stock sales in early February totaling meaningful dollar amounts; persistent insider selling can be viewed negatively by the market even if explained as routine diversification. SEC filing example
• Negative Sentiment: Rising inventories — reports note inventory levels increased in the quarter, which could signal softer near-term demand or channel stocking issues and may pressure future sales/margins if not resolved. No Surprises In Power Integrations’s Q4 Sales Numbers But Inventory Levels Increase

Analyst Ratings Changes

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

Insider Activity

In other Power Integrations news, VP Sunil Gupta sold 2,168 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $45.58, for a total transaction of $98,817.44. Following the completion of the sale, the vice president directly owned 95,766 shares in the company, valued at approximately $4,365,014.28. The trade was a 2.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Gagan Jain sold 995 shares of the stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $46.50, for a total value of $46,267.50. Following the transaction, the vice president directly owned 32,549 shares of the company’s stock, valued at $1,513,528.50. The trade was a 2.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,712 shares of company stock worth $977,212 over the last 90 days. 1.40% of the stock is currently owned by company insiders.

Institutional Trading of Power Integrations

Large investors have recently made changes to their positions in the company. Wellington Management Group LLP lifted its holdings in Power Integrations by 35.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company’s stock valued at $90,926,000 after purchasing an additional 595,404 shares in the last quarter. Squarepoint Ops LLC lifted its stake in shares of Power Integrations by 843.8% in the second quarter. Squarepoint Ops LLC now owns 519,952 shares of the semiconductor company’s stock worth $29,065,000 after buying an additional 464,858 shares in the last quarter. Bank of America Corp DE boosted its position in Power Integrations by 66.5% during the third quarter. Bank of America Corp DE now owns 723,281 shares of the semiconductor company’s stock worth $29,083,000 after acquiring an additional 288,771 shares during the last quarter. AQR Capital Management LLC grew its stake in Power Integrations by 147.6% during the 2nd quarter. AQR Capital Management LLC now owns 271,695 shares of the semiconductor company’s stock valued at $15,139,000 after acquiring an additional 161,943 shares in the last quarter. Finally, Voloridge Investment Management LLC grew its stake in Power Integrations by 57.6% during the 3rd quarter. Voloridge Investment Management LLC now owns 410,797 shares of the semiconductor company’s stock valued at $16,518,000 after acquiring an additional 150,152 shares in the last quarter.

Power Integrations Company Profile

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.