Power Integrations Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 7 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up five percent sequentially: Net revenue was $108.3 million, against $103.2 million in the prior quarter and $105.5 million in the first quarter of 2025. Source
• GAAP diluted EPS fell to $0.06: GAAP net income was $3.3 million, against $13.3 million in the prior quarter. Diluted EPS was $0.06, against $0.24 in the prior quarter and $0.15 a year earlier. Source
• Non-GAAP net income rose from prior quarter: Non-GAAP net income was $13.9 million and non-GAAP diluted EPS was $0.25, against $0.23 in the prior quarter and $0.31 a year earlier. Source
• Industrial revenue up 23 percent: Industrial end-market revenue grew 23 percent year-over-year, with applications in renewable energy, battery storage, home automation and automotive. Source
• Restructuring charges booked in quarter: Restructuring and related charges totaled $6.6 million, of which $6.2 million was in operating expenses and $0.4 million in cost of revenue. Source
• Non-GAAP operating margin 11.7 percent: Non-GAAP operating income was $12.7 million, a margin of 11.7 percent, against 9.7 percent in the prior quarter and 14.7 percent a year earlier. Source
• Operating cash flow $20.0 million: Cash flow from operations was $20.0 million, against $26.2 million in the prior quarter and $26.4 million a year earlier. Purchases of property and equipment were $2.0 million. Source

“Q1 was a good quarter for Power Integrations as we saw improved market demand while remaining focused on delivering innovative solutions based on our customers’ needs.”

Jen Lloyd, CEO

Guidance

What changed from last quarter

• New guidance: Second-quarter 2026 forecast issued. The prior release gave a forecast for the first quarter only. Source
• New: Management said its strategy and R&D pipeline are being oriented toward markets where its high-voltage technologies apply. Source

Results and earnings for the quarter

• Revenue up five percent sequentially: Net revenue was $108.3 million, against $103.2 million in the prior quarter and $105.5 million in the first quarter of 2025. Source
• GAAP diluted EPS fell to $0.06: GAAP net income was $3.3 million, against $13.3 million in the prior quarter. Diluted EPS was $0.06, against $0.24 in the prior quarter and $0.15 a year earlier. Source
• Non-GAAP net income rose from prior quarter: Non-GAAP net income was $13.9 million and non-GAAP diluted EPS was $0.25, against $0.23 in the prior quarter and $0.31 a year earlier. Source

End markets and applications

• Industrial revenue up 23 percent: Industrial end-market revenue grew 23 percent year-over-year, with applications in renewable energy, battery storage, home automation and automotive. Source
• Industrial share of revenue rose: Industrial was 41 percent of revenue, against 37 percent in the prior quarter and 34 percent a year earlier. Consumer was 38 percent, against 34 percent and 44 percent. Source
• Communications and computer shares fell: Communications was 10 percent of revenue, against 15 percent in the prior quarter. Computer was 11 percent, against 14 percent in the prior quarter and 12 percent a year earlier. Source
• Gate drivers cited for grid markets: Management said gate driver products suit renewables, battery storage and DC transmission, where pressure on the power grid is increasing. Source

“The momentum in our industrial business reflects our strategic focus on markets where our high-voltage technologies help customers solve the most pressing challenges in power.”

Jen Lloyd, CEO

Costs and operating expenses

• Restructuring charges booked in quarter: Restructuring and related charges totaled $6.6 million, of which $6.2 million was in operating expenses and $0.4 million in cost of revenue. Source
• GAAP operating expenses rose: GAAP operating expenses were $55.5 million, against $45.8 million in the prior quarter and $51.5 million a year earlier. Source
• Non-GAAP operating expenses were $45.3 million: Non-GAAP operating expenses were $45.3 million, against $45.0 million in the prior quarter and $43.5 million a year earlier. Source
• R&D rose while SG&A fell: Research and development was $26.3 million, against $24.3 million in the prior quarter. Selling, general and administrative expense was $24.4 million, against $25.2 million. Source

Gross and operating margins

• GAAP gross margin 52.6 percent: GAAP gross margin was 52.6 percent, against 52.9 percent in the prior quarter and 55.2 percent a year earlier. Source
• Non-GAAP gross margin 53.5 percent: Non-GAAP gross margin was 53.5 percent, against 53.3 percent in the prior quarter and 55.9 percent a year earlier. Source
• GAAP operating margin fell to 1.3 percent: GAAP operating margin was 1.3 percent, against 8.5 percent in the prior quarter and 6.4 percent a year earlier. Source
• Non-GAAP operating margin 11.7 percent: Non-GAAP operating income was $12.7 million, a margin of 11.7 percent, against 9.7 percent in the prior quarter and 14.7 percent a year earlier. Source

“We continue to see confirmation that EVs and AI data centers not only need innovative solutions like our PowiGaN™ technology”

Jen Lloyd, CEO

Cash, capital and returns

• Operating cash flow $20.0 million: Cash flow from operations was $20.0 million, against $26.2 million in the prior quarter and $26.4 million a year earlier. Purchases of property and equipment were $2.0 million. Source
• Dividends paid, no buybacks: Dividends paid totaled $11.95 million and no common stock was repurchased in the quarter; the company repurchased $23.1 million a year earlier. Source
• Cash and investments at quarter end: Cash and cash equivalents were $63.4 million and short-term investments were $193.8 million at March 31, 2026, against $58.8 million and $190.8 million at December 31, 2025. Source
• Inventories and receivables declined: Inventories were $163.0 million, against $166.9 million at December 31, 2025. Accounts receivable were $14.4 million, against $18.3 million. Source

Strategy and workforce

• Addressable market described as expanding: In February, management said its addressable market was expanding with AI data centers, electrification and grid modernization.
• Workforce reduced seven percent: The February release said a restructuring plan had been carried out, reducing the global workforce by seven percent.
• Restructuring tied to expense alignment: The February release tied the restructuring to aligning expenses with revenue and creating flexibility to invest in products, people and markets.

Figures management reported

Earlier plans management reported on

• Met: Dividend of $0.215 per share was paid on March 31, 2026, the date the February release gave. Source
• Not stated: The February release expected a first-quarter severance-related charge of $3.5 million to $4.0 million. This release does not state whether that expectation was met.

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.