Power Integrations (POWI) investor relations material

Executive summary

• Q3 revenue was $125.5M, up 5% QoQ and 6% YoY; non-GAAP operating margin reached 21.4% and diluted EPS was $0.46.

• PowiGaN demand and industrial strength supported results; consumer demand remained soft, with elevated channel inventory and high-power supply constraints.

• Strategic priorities include GaN execution and growth in data centers, energy infrastructure, and automotive markets.

Financial highlights

• Revenue was $125.5M versus $118.9M in Q3 2025 and Q2 2026; GAAP gross margin was 55.6% and non-GAAP gross margin was 55.2%.

• Non-GAAP operating expenses were $42.4M, down 10% YoY and below the $45M–$46M outlook; GAAP operating expenses were $50.6M.

• GAAP net income was $18.3M and diluted EPS was $0.32; non-GAAP net income was $26.1M and diluted EPS was $0.46.

• Q3 operating cash flow was $42.6M; free cash flow was $37M and cash and investments totaled $288.1M at quarter-end.

Outlook and guidance

• Q4 revenue guidance is $118M–$126M; at midpoint, YoY growth would be 18%.

• Q4 non-GAAP gross margin guidance is 54.5%–55.5%; non-GAAP operating expenses are expected at $42.5M–$43.5M and operating margin at 19%–21%.

• FY non-GAAP operating expenses are on track to decline ~4%, while expense discipline supports strategic growth and technology investment.

• Channel inventory may remain above the eight-week target, potentially at 9–10 weeks next year as customer buffer-stock needs ease.