Power Integrations' third quarter 2026 earnings beat estimates as non-GAAP gross margins reached 55.2%

Power Integrations reported third quarter 2026 revenue of $125.5 million, representing 5% sequential growth but finishing slightly below analyst expectations of $126 million. Despite the minor revenue miss, non-GAAP earnings of $0.46 per share significantly outperformed estimates, driven by product mix and disciplined expense management. The company remains focused on its PowiGaN technology and power density requirements for AI data centers and electrification.

Key Highlights

• Non-GAAP gross margin expanded to 55.2%, exceeding the analyst estimate of 54.5% and the upper end of management's previous guidance range.
• Industrial market revenue continues to show resilience, with sales in this segment up 13% year-to-date.
• Management announced a dividend increase to $0.22 per share per quarter for 2027, up from the current $0.215 per share.
• Fourth-quarter 2026 revenue guidance was set at a midpoint of $122.0 million, implying a modest sequential decline versus the third quarter.