Q2 2026 Power Integrations Inc Earnings Call Transcript
Key Points
- Q2 revenue of $119 million grew 10% sequentially, with improvement across all four end markets and non-GAAP operating margin expanding by over 5 percentage points to 17.1%.
- Demonstrated 2200-volt POWI GaN technology, extending leadership in high-voltage GaN and providing a roadmap for future data center and automotive applications.
- Won a utility-scale battery storage design at a top supplier, expanding presence in the growing energy storage market.
- Secured a GaN-based micro DC-to-DC converter design win at a major Tier 1 automotive supplier, marking a significant BOM expansion in EVs.
- Industrial revenue grew 16% year-to-date, driven by broad-based strength in renewable energy, home and building automation, and tools.
- Channel inventory normalized to 7.3 weeks, within the target range, and inventory days on hand fell by 27 days to 265, improving supply chain health.
- Q3 revenue outlook of $122-130 million implies 6% sequential growth, with expectations for continued growth in communications, computer, and industrial categories.
- Consumer revenue is expected to decline in Q3 due to normal seasonality, with continued softness in major appliances.
- The 2200-volt GaN technology is only a demonstration, with products expected several years out, limiting near-term revenue contribution.
- Data center revenue from main power path to GPU is still early-stage and dependent on 800-volt system deployments, with material revenue not expected until 2028 or later.
- Gross margin is expected to face a slight headwind in Q3 due to yen/dollar exchange rate fluctuations, with volatility causing ripples through 2026.
- Operating expenses, while reduced, remain a focus as the company balances cost discipline with investments in strategic growth markets.
- The company is still working through inventory reduction, with further reductions expected in the second half, indicating ongoing channel adjustments.
Hello, everyone.
Thank you for joining us and welcome to Power Integrations Q2 Earnings. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Joe Schiffler, Senior Director of Investor Relations. Joe, please go ahead.
Thanks, Ben. Good afternoon. Thanks, everyone, for joining us.
With me on the call today are Jen Loy, our CEO and our CFO, Nancy Irba.
After Jen and Nancy's prepared remarks, we'll open it up for questions.
Slides accompanying today's earnings release and conference call can be found on our investor website at investors.power.com.
Our discussion today will include forward-looking statements denoted by words like will, expect, should, outlook, forecast, and similar expressions that look toward future events or
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