Q1 Non-GAAP Gross Margin Expected at 53%-54%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy POWI?
Sees Q1 non-GAAP gross margin is expected 53%-54%.
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Analyst Views on POWI
Wall Street analysts forecast POWI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for POWI is 50.50 USD with a low forecast of 46.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 47.200
Low
46.00
Averages
50.50
High
56.00
Current: 47.200
Low
46.00
Averages
50.50
High
56.00
About POWI
Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. Its ICs used in AC-DC power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. It offers a range of products, such asTOPSwitch, TinySwitch, LinkSwitch, DPA-Switch, EcoSmart, Hiper, Qspeed, InnoSwitch, BridgeSwitch, SCALE, SCALE-II, SCALE-III, SCALE-iDriver, PeakSwitch, CAPZero, SENZero, ChiPhy, FluxLink, CONCEPT, PI Expert and Motor-Expert. It also offers automotive-qualified versions of certain products, such as InnoSwitch ICs, for use in electric vehicles (EVs). Its portfolio of power-conversion products generally addresses power supplies up to about 500 watts of output.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Power Integrations Announces Quarterly Dividend Increase
- Dividend Increase: Power Integrations has declared a quarterly dividend of $0.215 per share, marking a 2.4% increase from the previous dividend of $0.210, which indicates the company's ongoing improvement in cash flow and profitability, thereby boosting investor confidence.
- Yield Metrics: The forward yield of 1.82% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, which could further enhance shareholder value.
- Payment Schedule: The dividend is payable on March 31, with a record date of February 27 and an ex-dividend date also set for February 27, ensuring that eligible shareholders receive their earnings promptly, thereby strengthening the trust relationship between the company and its investors.
- Restructuring Focus: While Power Integrations is reducing its workforce by 7% to focus on cost control, it remains committed to industrial growth, demonstrating its strategic determination to optimize operations and enhance efficiency.
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Power Integrations Q4 2025 Earnings Call Insights
- Financial Overview: Power Integrations reported Q4 2025 revenue of $103 million and non-GAAP EPS of $0.23, reflecting a 13% decline from the previous quarter, yet overall performance met expectations, demonstrating resilience amid market challenges.
- Restructuring and Cost Control: The company announced a 7% global workforce reduction to better align expenses with revenue, aiming to create flexibility for investments in products, people, and markets to generate long-term shareholder value.
- Market Outlook and Challenges: While improved bookings in industrial markets are expected to make it the fastest-growing segment in 2026, consumer demand continues to face headwinds from low existing home sales in the U.S., tariff impacts, and ongoing softness in the Chinese housing market.
- Strategic Investments and Future Planning: Strategic investments in high-power, automotive, and AI data center applications are seen as key to long-term value creation, although management maintains a cautious approach to 2026 investments, emphasizing operational discipline until demand clarity is achieved.
See More
Power Integrations to Announce Q4 Earnings on February 5
- Earnings Announcement Date: Power Integrations is set to release its Q4 earnings on February 5 after market close, with a consensus EPS estimate of $0.19, reflecting a significant year-over-year decline of 36.7%, indicating potential market challenges ahead.
- Revenue Expectations: The consensus revenue estimate stands at $103.02 million, down 2.1% year-over-year, suggesting that Power Integrations may face headwinds in maintaining growth in a competitive semiconductor landscape.
- Historical Performance: Over the past two years, Power Integrations has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating a track record of financial reliability and stability.
- Market Sentiment: Despite the challenges, Susquehanna holds a bullish outlook on semiconductor stocks, which could positively influence Power Integrations' stock price, especially in the lead-up to the upcoming earnings report.
See More
Power Integrations Grants Stock Awards to New Executives
- Executive Appointments and Stock Awards: On February 2, 2026, Power Integrations granted 64,487 restricted stock units (RSUs) and 9,136 performance stock units (PSUs) to newly appointed CFO Nancy Erba, incentivizing her long-term contributions to the company.
- Market Strategy Executive Incentives: On the same day, the company awarded 42,131 RSUs and 6,019 PSUs to new Senior Vice President of Marketing and Product Strategy Chris Jacobs, aiming to attract industry talent to drive market growth through stock incentives.
- Human Resources Executive Incentives: Julie Currie, who joined as Chief People and Transformation Officer in November 2025, received 19,346 PRSUs, reflecting the company's commitment to human resource management and organizational transformation.
- Incentive Plan Compliance: All stock awards were approved by the talent and compensation committee in accordance with Nasdaq Rule 5635(c)(4), ensuring compliance and transparency in the company's efforts to attract and retain executives.
See More
Power Integrations Grants Stock Awards to New Executives
- Executive Stock Awards: On February 2, 2026, Power Integrations granted 64,487 RSUs, 9,136 PSUs, and 42,992 PRSUs to newly appointed CFO Nancy Erba, incentivizing her performance during her tenure with the company.
- Marketing VP Incentives: The same day, the company awarded 42,131 RSUs, 6,019 PSUs, and 18,056 PRSUs to new Senior VP of Marketing and Product Strategy Chris Jacobs, aiming to attract and retain key talent through stock incentives.
- HR Executive Recognition: Julie Currie, the new Chief People and Transformation Officer, received 19,346 PRSUs on February 2, 2026, reflecting the company's acknowledgment of her critical role in driving HR transformation.
- Compliance with Incentive Plan: All stock awards were granted under Power Integrations' Amended and Restated 2025 Inducement Award Plan and approved by the talent and compensation committee of the board, ensuring compliance with Nasdaq regulations.
See More
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- Market Growth Potential: According to MarketsandMarkets.com, the generative AI market is projected to surge from $71.4 billion in 2025 to $890.6 billion by 2032, reflecting a compound annual growth rate of 43.4%, indicating significant investment opportunities in this sector.
- ETF Investment Options: Investors can gain diversified exposure to generative AI-related companies through thematic ETFs like the VanEck Semiconductor ETF, which holds 25 semiconductor firms, with the top five holdings comprising nearly half of the fund's weight, providing quick access to industry leaders.
- Broad Semiconductor Coverage: The State Street SPDR S&P Semiconductor ETF offers a balanced investment in 43 companies, aiming to mitigate risks from large firms through an equal-weight strategy, and has shown a robust 41% increase over the past 12 months, indicating solid return potential.
- Focus on U.S. Market: The iShares Semiconductor ETF concentrates on U.S. semiconductor companies, holding 31 firms, and has risen 56% in the past year, with an expense ratio of 0.34%, making it an attractive option for investors looking to minimize foreign exposure.
See More
Power Integrations Announces Quarterly Dividend Increase
- Dividend Increase: Power Integrations has declared a quarterly dividend of $0.215 per share, marking a 2.4% increase from the previous dividend of $0.210, which indicates the company's ongoing improvement in cash flow and profitability, thereby boosting investor confidence.
- Yield Metrics: The forward yield of 1.82% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, which could further enhance shareholder value.
- Payment Schedule: The dividend is payable on March 31, with a record date of February 27 and an ex-dividend date also set for February 27, ensuring that eligible shareholders receive their earnings promptly, thereby strengthening the trust relationship between the company and its investors.
- Restructuring Focus: While Power Integrations is reducing its workforce by 7% to focus on cost control, it remains committed to industrial growth, demonstrating its strategic determination to optimize operations and enhance efficiency.
See More
Power Integrations Q4 2025 Earnings Call Insights
- Financial Overview: Power Integrations reported Q4 2025 revenue of $103 million and non-GAAP EPS of $0.23, reflecting a 13% decline from the previous quarter, yet overall performance met expectations, demonstrating resilience amid market challenges.
- Restructuring and Cost Control: The company announced a 7% global workforce reduction to better align expenses with revenue, aiming to create flexibility for investments in products, people, and markets to generate long-term shareholder value.
- Market Outlook and Challenges: While improved bookings in industrial markets are expected to make it the fastest-growing segment in 2026, consumer demand continues to face headwinds from low existing home sales in the U.S., tariff impacts, and ongoing softness in the Chinese housing market.
- Strategic Investments and Future Planning: Strategic investments in high-power, automotive, and AI data center applications are seen as key to long-term value creation, although management maintains a cautious approach to 2026 investments, emphasizing operational discipline until demand clarity is achieved.
See More
Power Integrations to Announce Q4 Earnings on February 5
- Earnings Announcement Date: Power Integrations is set to release its Q4 earnings on February 5 after market close, with a consensus EPS estimate of $0.19, reflecting a significant year-over-year decline of 36.7%, indicating potential market challenges ahead.
- Revenue Expectations: The consensus revenue estimate stands at $103.02 million, down 2.1% year-over-year, suggesting that Power Integrations may face headwinds in maintaining growth in a competitive semiconductor landscape.
- Historical Performance: Over the past two years, Power Integrations has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating a track record of financial reliability and stability.
- Market Sentiment: Despite the challenges, Susquehanna holds a bullish outlook on semiconductor stocks, which could positively influence Power Integrations' stock price, especially in the lead-up to the upcoming earnings report.
See More
Power Integrations Grants Stock Awards to New Executives
- Executive Appointments and Stock Awards: On February 2, 2026, Power Integrations granted 64,487 restricted stock units (RSUs) and 9,136 performance stock units (PSUs) to newly appointed CFO Nancy Erba, incentivizing her long-term contributions to the company.
- Market Strategy Executive Incentives: On the same day, the company awarded 42,131 RSUs and 6,019 PSUs to new Senior Vice President of Marketing and Product Strategy Chris Jacobs, aiming to attract industry talent to drive market growth through stock incentives.
- Human Resources Executive Incentives: Julie Currie, who joined as Chief People and Transformation Officer in November 2025, received 19,346 PRSUs, reflecting the company's commitment to human resource management and organizational transformation.
- Incentive Plan Compliance: All stock awards were approved by the talent and compensation committee in accordance with Nasdaq Rule 5635(c)(4), ensuring compliance and transparency in the company's efforts to attract and retain executives.
See More
Power Integrations Grants Stock Awards to New Executives
- Executive Stock Awards: On February 2, 2026, Power Integrations granted 64,487 RSUs, 9,136 PSUs, and 42,992 PRSUs to newly appointed CFO Nancy Erba, incentivizing her performance during her tenure with the company.
- Marketing VP Incentives: The same day, the company awarded 42,131 RSUs, 6,019 PSUs, and 18,056 PRSUs to new Senior VP of Marketing and Product Strategy Chris Jacobs, aiming to attract and retain key talent through stock incentives.
- HR Executive Recognition: Julie Currie, the new Chief People and Transformation Officer, received 19,346 PRSUs on February 2, 2026, reflecting the company's acknowledgment of her critical role in driving HR transformation.
- Compliance with Incentive Plan: All stock awards were granted under Power Integrations' Amended and Restated 2025 Inducement Award Plan and approved by the talent and compensation committee of the board, ensuring compliance with Nasdaq regulations.
See More
Generative AI Market Expected to Reach $890.6 Billion by 2032
- Market Growth Potential: According to MarketsandMarkets.com, the generative AI market is projected to surge from $71.4 billion in 2025 to $890.6 billion by 2032, reflecting a compound annual growth rate of 43.4%, indicating significant investment opportunities in this sector.
- ETF Investment Options: Investors can gain diversified exposure to generative AI-related companies through thematic ETFs like the VanEck Semiconductor ETF, which holds 25 semiconductor firms, with the top five holdings comprising nearly half of the fund's weight, providing quick access to industry leaders.
- Broad Semiconductor Coverage: The State Street SPDR S&P Semiconductor ETF offers a balanced investment in 43 companies, aiming to mitigate risks from large firms through an equal-weight strategy, and has shown a robust 41% increase over the past 12 months, indicating solid return potential.
- Focus on U.S. Market: The iShares Semiconductor ETF concentrates on U.S. semiconductor companies, holding 31 firms, and has risen 56% in the past year, with an expense ratio of 0.34%, making it an attractive option for investors looking to minimize foreign exposure.
See More
