Power Integrations

Q2 FY2026 EarningsQ2 FY26 revenue reached $118.9M, exceeding the $117.4M consensus, driven by robust sales in the industrial end market which now accounts for 43% of total revenue. Gross margin was largely in-line with expectations at 54.3%, despite a YoY decline attributed to less favorable product mix and Japanese Yen fluctuations. However, GAAP diluted EPS of $0.17 slightly missed the $0.18 consensus, pressured by a higher-than-expected effective tax rate of 12.5% and $11.3M in stock-based compensation. The company continues to return capital through dividends ($11.9M) while executing a strategic workforce reduction to optimize long-term profitability.