Power Integrations reported second-quarter 2026 revenue of $118.9 million, up 10% sequentially and 3% year-over-year, supported by continued growth in industrial markets. The company also reported improving profitability and lower inventories both in the distribution channel and on its balance sheet.
GAAP net income reached $9.8 million, or $0.17 per diluted share, improving substantially from $0.06 per share in Q1 2026 and $0.02 in Q2 2025. Non-GAAP net income was $20.9 million, or $0.37 per diluted share, compared with $0.25 in the previous quarter and $0.35 a year earlier. Operating cash flow totaled $22.0 million during the quarter.
CEO Jen Lloyd highlighted renewable energy, grid infrastructure and AI data centers as important demand drivers, with customers increasingly requiring higher efficiency, reliability and power density. The improving industrial environment is particularly relevant for Power Integrations given its exposure to high-voltage power conversion across these applications.
Management also highlighted the company’s newly announced 2200 V PowiGaN technology as an important component of its longer-term growth strategy. The technology significantly extends Power Integrations’ high-voltage GaN capabilities and is intended to support customer roadmaps in markets including AI data centers, renewable energy and grid infrastructure.
The 2200 V development could become strategically important as higher-voltage power architectures create opportunities for GaN in applications historically dominated by silicon and SiC. Combined with Power Integrations’ existing high-voltage integrated power products, the technology gives the company an avenue to participate in emerging higher-voltage conversion architectures while benefiting from GaN’s high switching-frequency capabilities.
For Q3 2026, Power Integrations expects revenue between $122 million and $130 million. At the $126 million midpoint, this represents approximately 6% sequential growth, indicating that the recovery is expected to continue into the September quarter.
GAAP gross margin is forecast between 53.3% and 54.4%, while non-GAAP gross margin is expected between 54% and 55%. GAAP operating margin is projected at 8.3% to 10.9%, with non-GAAP operating margin of 17% to 19%. The outlook therefore points to continued revenue growth accompanied by relatively strong profitability.
Power Integrations also continues returning cash to shareholders, paying a $0.215-per-share dividend in June and declaring another $0.215 dividend payable at the end of September.
For the power semiconductor market, the quarter provides two positive signals: near-term demand conditions are improving, particularly in industrial applications, while longer-term investment in AI data centers, renewable energy and grid infrastructure is creating new opportunities for high-voltage power conversion. The combination of sequential revenue growth, improving channel inventories and the expansion of PowiGaN to 2200 V positions Power Integrations to participate in both the cyclical recovery and structural shift toward higher-voltage, higher-power-density architectures.
Original – Power Integrations