Power Integrations (POWI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $118.9 million, up 10% sequentially and 3% year-over-year, with growth across all four end markets, led by industrial and communications.

• Non-GAAP operating margin expanded to 17.1%, and non-GAAP EPS was $0.37; GAAP net income was $9.8 million ($0.17 per diluted share).

• Cash flow from operations was $22 million for Q2, with free cash flow of $35.7 million year-to-date.

• Strategic focus is on high-growth markets: energy infrastructure, rail, data center, and automotive, supported by new 2200V PowiGaN technology.

• Dividend of $0.215 per share paid in June and scheduled for September 2026.

Financial highlights

• Q2 2026 revenue: $118.9 million (+10% QoQ, +3% YoY); industrial revenue +14% QoQ, communications +16% QoQ.

• Non-GAAP gross margin was 55.1%, up 160 basis points sequentially; GAAP gross margin was 54%–54.3%.

• Non-GAAP net income was $20.9 million ($0.37 per diluted share); GAAP net income was $9.8 million ($0.17 per diluted share).

• Free cash flow for the first half was $35.7 million; cash and investments at quarter-end totaled $262.6 million.

• Quarterly dividend of $0.215 per share announced.

Outlook and guidance

• Q3 2026 revenue expected between $122 million and $130 million, with non-GAAP gross margin guidance of 54%–55% and operating margin of 17%–19%.

• Non-GAAP operating expenses projected at $45–$46 million; GAAP operating expenses at $55–$56 million.

• Full-year OpEx expected to decrease slightly.