Equity Profile

POWI

Power Integrations, Inc.

Information TechnologySemiconductors$3.9B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Power Integrations, Inc. (POWI) is a leading company in the semiconductor industry, focusing on high-performance power conversion solutions....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of a company's profitability and will help investors gauge how well Power Integrations is managing costs and generating income.

$0.25

Revenue Growth

Revenue growth is essential to understand the company's market performance and demand for its products, especially in a competitive semiconductor market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

POWI Q2-2026 Earnings Preview

Context

Company Snapshot

Power Integrations, Inc. (POWI) is a leading company in the semiconductor industry, focusing on high-performance power conversion solutions. As the demand for energy-efficient technologies grows, especially in sectors like electric vehicles and renewable energy, Power Integrations plays a crucial role in providing innovative solutions that help reduce energy consumption.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+197.15%

Avg Stock Reaction

+0.02%

Last Quarter Recap

In Q1 2026, Power Integrations reported an EPS of $0.25, significantly beating expectations of $0.10, marking a 157.73% surprise. Despite this strong performance, the stock fell by 8.18% the following day, indicating market skepticism.

Management Promises & Guidance

Focus on cost management to improve margins.
Continued investment in R&D for innovative power solutions.
Commitment to expanding market share in the electric vehicle sector.

Expectations

Wall Street Expectations

Overall, analysts expect Power Integrations to continue its trend of beating earnings estimates, given its strong track record. However, there is caution in the market due to recent stock price volatility after earnings announcements.

Bull Case

If Power Integrations can demonstrate strong revenue growth and maintain or improve its gross margins, it could lead to a positive market reaction and renewed investor confidence.

Bear Case

Conversely, if the company fails to meet expectations for revenue growth or if margins decline, it could result in a significant negative reaction from investors, especially given the recent stock performance.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.25

EPS is a key indicator of a company's profitability and will help investors gauge how well Power Integrations is managing costs and generating income.

Revenue Growth

N/A

Revenue growth is essential to understand the company's market performance and demand for its products, especially in a competitive semiconductor market.

Gross Margin

N/A

Gross margin indicates the efficiency of production and pricing strategy, which is critical for maintaining profitability in the semiconductor sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the revenue growth rate be for the upcoming quarter?

Investors will closely watch revenue growth as it reflects demand for Power Integrations' products and its ability to capture market share.

How will gross margins be affected by current market conditions?

Gross margins are critical for assessing profitability, and any decline could raise concerns about the company's cost management and pricing strategies.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for Power Integrations to capitalize on the growing demand for energy-efficient solutions, particularly in the electric vehicle sector.

Supporting Evidence

The company's recent EPS surprises indicate strong operational performance, suggesting it can continue to outperform expectations.

Options pricing suggests a high level of volatility, which may reflect underlying bullish sentiment not captured in current stock prices.

Key Risk

If revenue growth exceeds expectations, it could shift the narrative and lead to a significant upward adjustment in stock price.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on the balance between revenue growth and margin management, which are critical for sustaining investor confidence.

Bull Confirmed If

Revenue growth of at least 10% year-over-year would confirm the bullish case for Power Integrations.

Bear Confirmed If

A revenue decline or flat growth would confirm the bearish outlook and raise concerns about market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±20.8%

Historical Avg

±3.4%

Pricing rich

The options market is pricing in a substantial move, indicating that traders expect significant volatility around the earnings report.

Options are pricing ±20.8% while POWI has averaged ±3.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.0%

30d HV

80.6%

Calls (140K)P/C Ratio: 0.46Puts (8K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Semiconductors

n=30

Fade rate: 4 of 9 (44%)

This setup has occurred 30 times across Information Technology in the last 2 years. 4 of 9 faded and 5 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.4%, with a raw directional average of -0.5% (modestly negative historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Power Integrations beats expectations, history suggests the stock could rise by an average of 0.02%, confirming strong operational performance.

In-Line / Cautious

If results are in line with expectations but management provides cautious commentary, the stock may experience muted movement as investors reassess their outlook.

Miss

If the company misses expectations, history suggests a potential decline around 3.36%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on revenue growth in the electric vehicle market.
2Any commentary on cost management strategies and their impact on gross margins.
3Insights into R&D investments and new product developments.
4Discussion on competitive pressures and market share trends.
5Management's outlook on future demand for energy-efficient solutions.

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AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Power Integrations, Inc. (POWI) is a leading company in the semiconductor industry, focusing on high-performance power conversion solutions....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of a company's profitability and will help investors gauge how well Power Integrations is managing costs and generating income.

$0.25

Revenue Growth

Revenue growth is essential to understand the company's market performance and demand for its products, especially in a competitive semiconductor market.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

POWI Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+197.15%

Avg Stock Reaction

+0.02%

Last Quarter Recap

Management Promises & Guidance

Focus on cost management to improve margins.
Continued investment in R&D for innovative power solutions.
Commitment to expanding market share in the electric vehicle sector.

Expectations

Wall Street Expectations

Bull Case

If Power Integrations can demonstrate strong revenue growth and maintain or improve its gross margins, it could lead to a positive market reaction and renewed investor confidence.

Bear Case

Key Metrics to Watch

Earnings Per Share (EPS)

$0.25

EPS is a key indicator of a company's profitability and will help investors gauge how well Power Integrations is managing costs and generating income.

Revenue Growth

N/A

Revenue growth is essential to understand the company's market performance and demand for its products, especially in a competitive semiconductor market.

Gross Margin

N/A

Gross margin indicates the efficiency of production and pricing strategy, which is critical for maintaining profitability in the semiconductor sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the revenue growth rate be for the upcoming quarter?

Investors will closely watch revenue growth as it reflects demand for Power Integrations' products and its ability to capture market share.

How will gross margins be affected by current market conditions?

Gross margins are critical for assessing profitability, and any decline could raise concerns about the company's cost management and pricing strategies.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for Power Integrations to capitalize on the growing demand for energy-efficient solutions, particularly in the electric vehicle sector.

Supporting Evidence

The company's recent EPS surprises indicate strong operational performance, suggesting it can continue to outperform expectations.

Options pricing suggests a high level of volatility, which may reflect underlying bullish sentiment not captured in current stock prices.

Key Risk

If revenue growth exceeds expectations, it could shift the narrative and lead to a significant upward adjustment in stock price.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will hinge on the balance between revenue growth and margin management, which are critical for sustaining investor confidence.

Bull Confirmed If

Revenue growth of at least 10% year-over-year would confirm the bullish case for Power Integrations.

Bear Confirmed If

A revenue decline or flat growth would confirm the bearish outlook and raise concerns about market demand.

Pre-Earnings Positioning

Options Market

Implied Move

±20.8%

Historical Avg

±3.4%

Pricing rich

The options market is pricing in a substantial move, indicating that traders expect significant volatility around the earnings report.

Options are pricing ±20.8% while POWI has averaged ±3.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.0%

30d HV

80.6%

Calls (140K)P/C Ratio: 0.46Puts (8K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Semiconductors

n=30

Fade rate: 4 of 9 (44%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Power Integrations beats expectations, history suggests the stock could rise by an average of 0.02%, confirming strong operational performance.

In-Line / Cautious

If results are in line with expectations but management provides cautious commentary, the stock may experience muted movement as investors reassess their outlook.

Miss

If the company misses expectations, history suggests a potential decline around 3.36%, reflecting investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on revenue growth in the electric vehicle market.
2Any commentary on cost management strategies and their impact on gross margins.
3Insights into R&D investments and new product developments.
4Discussion on competitive pressures and market share trends.
5Management's outlook on future demand for energy-efficient solutions.