Power Integrations (POWI)
NASDAQ:POWI
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Power Integrations
(NASDAQ:POWI)
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Rating:64Neutral
Price Target:
$56.00
▲(13.13% Upside)
Action:ReiteratedDate:02/06/26
POWI scores moderately: strong balance-sheet quality and resilient cash flow (including significant shareholder returns) plus constructive price momentum are offset by a steep TTM revenue decline/margin compression and a very expensive valuation (P/E ~150). Earnings-call guidance and cost actions help sentiment but inventory and demand/mix risks remain near term.
Positive Factors
Balance Sheet Strength
The company’s zero-debt balance sheet with $673M of equity and $772M in assets provides durable financial flexibility. This lowers solvency risk in semiconductor cycles, enables funding of R&D, strategic hires, buybacks or M&A without reliance on external leverage, and supports multi‑year investment plans.
Negative Factors
Revenue Downcycle & Margin Compression
A near‑50% TTM revenue decline and compressed EBIT/net margins reduce operating leverage and ROE, limiting the company’s ability to scale fixed R&D and SG&A investments. Recovery may be protracted as end‑market demand and mix need time to normalize, pressuring sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
The company’s zero-debt balance sheet with $673M of equity and $772M in assets provides durable financial flexibility. This lowers solvency risk in semiconductor cycles, enables funding of R&D, strategic hires, buybacks or M&A without reliance on external leverage, and supports multi‑year investment plans.
Read all positive factors
Power Integrations (POWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.75B
Dividend Yield2.27%
Average Volume (3M)884.53K
Price to Earnings (P/E)90.2
Beta (1Y)1.48
Revenue Growth10.50%
EPS Growth-52.00%
CountryUS
Employees865
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.23
Shares Outstanding55,504,000
10 Day Avg. Volume1,010,479
30 Day Avg. Volume884,530
Financial Highlights & Ratios
PEG Ratio-2.86
Price to Book (P/B)2.96
Price to Sales (P/S)4.49
P/FCF Ratio22.87
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue6.06
Enterprise Value/Gross Profit11.13
Enterprise Value/Ebitda62.31
Forecast
1Y Price Target
$52.50Price Target Upside6.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.33
Revenue Forecast (FY)$477.00M
Power Integrations Business Overview & Revenue Model
Company Description
Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of...
How the Company Makes Money
Power Integrations primarily makes money by selling power management semiconductor products—especially proprietary high-voltage power conversion ICs and supporting devices—into a broad set of electronic end markets. Revenue is generated on a per-u...
Power Integrations Key Performance Indicators (KPIs)
Power Integrations Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic tone: the company returned to full-year growth with improved margins, strong cash generation, accelerating GaN and high-power momentum, and decisive cost actions (7% workforce reduction) to align expenses. Near-term headwinds remain—notably sequential Q4 revenue decline, elevated inventory days (313), consumer/appliance softness tied to tariffs and housing, and delayed volume realization in automotive and data center. Management emphasized disciplined OpEx control, prioritized R&D, and selected strategic hires to capitalize on higher-growth markets. Overall, the positives (return to growth, strong cash flow, margin expansion, GaN momentum and cost actions) outweigh the near-term operational and mix challenges.Positive Updates
Full-Year Revenue and EPS Growth
Full-year 2025 revenue increased 6% year-over-year and non-GAAP EPS grew 8% to $1.25, marking a return to top- and bottom-line growth.
Negative Updates
Q4 Sequential Revenue Decline
Q4 revenue declined 13% sequentially from the prior quarter (sell-through down only 3%), reflecting channel digestion and lumpiness across end markets.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and EPS Growth
Full-year 2025 revenue increased 6% year-over-year and non-GAAP EPS grew 8% to $1.25, marking a return to top- and bottom-line growth.
Read all positive updates
Company Guidance
The company guided Q1 revenue of $104–$109 million with non‑GAAP gross margin of 53%–54% and non‑GAAP operating expenses of $46 million ± $0.5 million (Q1 GAAP to include a $3.5–$4.0 million restructuring charge); management expects mix to be more favorable vs. Q4 (industrial/consumer up) and an effective tax rate of about 7%–8% for the quarter and year. For context, Q4 revenue was $103 million with non‑GAAP net income of $12.7 million ($0.23 per diluted share), non‑GAAP OpEx of $45 million (below the $47 million outlook and down >$2 million sequentially), channel inventory at ~9.4 weeks (inventory days 313), Q4 cash flow from operations $26 million and CapEx $7 million. Full‑year 2025 metrics included revenue up 6%, non‑GAAP EPS $1.25 (up 8%), non‑GAAP gross margin 55.1% (+70 bps), non‑GAAP operating margin 13.9% (+100 bps), operating cash flow $112 million (CapEx $24 million, free cash flow $87 million), and returns to shareholders of $145 million (167% of FCF); management expects inventory days and wafer inventory to decline through 2026 and OpEx to be reduced further (targeting roughly $3–$5 million of additional savings over the year).Power Integrations Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 443.50M | 418.97M | 444.54M | 651.14M | 703.28M |
| Gross Profit | 241.65M | 224.75M | 228.96M | 366.91M | 360.64M |
| EBITDA | 49.01M | 52.51M | 72.44M | 217.76M | 210.01M |
| Net Income | 22.09M | 32.23M | 55.73M | 170.85M | 164.41M |
Balance Sheet | |||||
| Total Assets | 772.21M | 828.83M | 819.87M | 840.10M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 249.51M | 300.00M | 311.57M | 353.81M | 530.35M |
| Total Debt | 0.00 | 28.19M | 17.33M | 14.56M | 19.79M |
| Total Liabilities | 99.36M | 79.05M | 67.63M | 84.88M | 102.45M |
| Stockholders Equity | 672.85M | 749.77M | 752.24M | 755.22M | 912.03M |
Cash Flow | |||||
| Free Cash Flow | 87.12M | 63.90M | 44.88M | 176.13M | 183.60M |
| Operating Cash Flow | 111.52M | 81.18M | 65.76M | 215.34M | 230.87M |
| Investing Cash Flow | 36.21M | -25.92M | -14.15M | 78.34M | -232.80M |
| Financing Cash Flow | -139.94M | -68.22M | -93.05M | -346.42M | -98.83M |
Power Integrations Technical Analysis
Positive
49.50
Price Trends
46.65
Positive
41.44
Positive
44.29
Positive
Market Momentum
1.01
Negative
56.37
Neutral
79.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWI, the sentiment is Positive. The current price of 49.5 is above the 20-day moving average (MA) of 47.77, above the 50-day MA of 46.65, and above the 200-day MA of 44.29, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 79.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWI.
Power Integrations Risk Analysis
Power Integrations disclosed 6 risk factors in its most recent earnings report. Power Integrations reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Power Integrations Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.99B | 21.10 | 11.72% | ― | -20.69% | -37.67% | |
73 Outperform | $3.13B | 34.57 | 3.55% | ― | 10.45% | 4.37% | |
73 Outperform | $7.63B | 82.61 | 5.43% | ― | 2.29% | -69.81% | |
73 Outperform | $3.74B | 4.07 | 15.21% | 2.22% | -2.26% | 9.74% | |
64 Neutral | $2.75B | 90.19 | 3.17% | 2.27% | 10.50% | -52.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.66B | -48.27 | -4.45% | ― | 13.24% | -129.14% |
* Technology Sector Average
POWI
Power Integrations
49.50
-0.03
-0.06%
ACLS
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97.35
47.68
95.99%
DIOD
Diodes
68.20
25.03
57.98%
FORM
Formfactor
97.93
69.64
246.16%
SIMO
Silicon Motion
110.06
60.77
123.30%
SYNA
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68.71
4.99
7.83%
Power Integrations Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresRegulatory Filings and Compliance
Power Integrations Announces Leadership Changes and Profit Recovery
Positive
Feb 5, 2026
On February 2, 2026, Power Integrations’ board approved a new indemnification agreement for directors and officers, expanding protections and expense advancements for individuals acting in good faith while serving the company, without limiti...
Business Operations and StrategyRegulatory Filings and Compliance
Power Integrations Expands Inducement Plan and Updates Bylaws
Positive
Jan 30, 2026
On January 27, 2026, Power Integrations’ Talent and Compensation Committee amended and restated the company’s 2025 Inducement Award Plan, increasing the pool of shares reserved for equity awards by 500,000 to a total of 850,000 shares ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.