Equity Profile

POWI

Power Integrations, Inc.

Information TechnologySemiconductors$3.5B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Power Integrations, Inc. (POWI) is a semiconductor company that designs and manufactures high-performance electronic components....

Key Metrics to Watch

Earnings Per Share (EPS)

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

$0.30

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet customer demand, which is vital in the competitive semiconductor industry.

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 semiconductor company that designs and manufactures high-performance electronic components. Its products are essential for energy-efficient power conversion in various applications, including consumer electronics and renewable energy systems. As the demand for energy-efficient solutions grows, especially in sectors like electric vehicles and renewable energy, Power Integrations plays a crucial role in the technology landscape.

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 by 157.73%. However, the stock saw a decline of 8.18% the following day, indicating mixed market reactions despite strong earnings.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Power Integrations are cautiously optimistic, given its strong historical performance in beating EPS estimates. However, the lack of specific revenue guidance may lead to uncertainty among investors.

Bull Case

If Power Integrations continues its trend of beating EPS estimates and shows strong revenue growth, it could indicate robust demand for its products, leading to a positive market reaction.

Bear Case

On the other hand, if the company fails to provide clear guidance or if there are signs of slowing demand in the semiconductor market, it could lead to a negative response from investors.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.30

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

Revenue Growth

N/A

Revenue growth reflects the company's ability to expand its market share and meet customer demand, which is vital in the competitive semiconductor industry.

Gross Margin

N/A

Gross margin indicates how efficiently a company is producing its goods and can signal potential profitability trends.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth for the upcoming quarter?

Revenue growth will be critical in assessing the company's ability to capitalize on market demand and could significantly influence investor sentiment.

What gross margin percentage is the company targeting?

Gross margin is a key indicator of profitability and efficiency, and any changes could impact future earnings potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for Power Integrations to significantly outperform expectations based on its historical EPS performance.

Supporting Evidence

Power Integrations has consistently beaten EPS estimates, with a 100% beat rate over the last eight quarters.

The options market is pricing a 20.8% move, which is significantly higher than the average historical move of 3.36%, indicating potential overreaction to uncertainty.

Key Risk

If the company reports an EPS significantly above $0.30, it could challenge the cautious sentiment currently prevailing in the market.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is crucial as it will reveal whether Power Integrations can maintain its growth trajectory amid market challenges.

Bull Confirmed If

Achieving an EPS of $0.30 or higher with strong revenue growth would confirm the bull case.

Bear Confirmed If

An EPS below $0.25 or indications of declining revenue would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±20.8%

Historical Avg

±3.4%

Pricing rich

The options market is pricing in a significant move of about 20.8%, suggesting that traders expect volatility around the earnings announcement.

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 and raises guidance, history suggests the stock could see a positive reaction, typically around a 0.02% increase on the day.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may experience muted movement as investors weigh future prospects.

Miss

A miss on EPS could lead to a significant downturn, with historical patterns indicating a potential average drop of around 3.36%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or market expansions.
2Insights into customer demand trends in key sectors like renewable energy and electric vehicles.
3Management's commentary on supply chain stability and cost management.
4Details on any significant contracts or partnerships that could impact future revenue.
5Guidance on expected gross margins and how they plan to maintain profitability.

See the full picture

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Company Snapshot

Power Integrations, Inc. (POWI) is a semiconductor company that designs and manufactures high-performance electronic components....

Key Metrics to Watch

Earnings Per Share (EPS)

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

$0.30

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet customer demand, which is vital in the competitive semiconductor industry.

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

Expectations

Wall Street Expectations

Bull Case

If Power Integrations continues its trend of beating EPS estimates and shows strong revenue growth, it could indicate robust demand for its products, leading to a positive market reaction.

Bear Case

On the other hand, if the company fails to provide clear guidance or if there are signs of slowing demand in the semiconductor market, it could lead to a negative response from investors.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.30

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

Revenue Growth

N/A

Revenue growth reflects the company's ability to expand its market share and meet customer demand, which is vital in the competitive semiconductor industry.

Gross Margin

N/A

Gross margin indicates how efficiently a company is producing its goods and can signal potential profitability trends.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth for the upcoming quarter?

Revenue growth will be critical in assessing the company's ability to capitalize on market demand and could significantly influence investor sentiment.

What gross margin percentage is the company targeting?

Gross margin is a key indicator of profitability and efficiency, and any changes could impact future earnings potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for Power Integrations to significantly outperform expectations based on its historical EPS performance.

Supporting Evidence

Power Integrations has consistently beaten EPS estimates, with a 100% beat rate over the last eight quarters.

The options market is pricing a 20.8% move, which is significantly higher than the average historical move of 3.36%, indicating potential overreaction to uncertainty.

Key Risk

If the company reports an EPS significantly above $0.30, it could challenge the cautious sentiment currently prevailing in the market.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is crucial as it will reveal whether Power Integrations can maintain its growth trajectory amid market challenges.

Bull Confirmed If

Achieving an EPS of $0.30 or higher with strong revenue growth would confirm the bull case.

Bear Confirmed If

An EPS below $0.25 or indications of declining revenue would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±20.8%

Historical Avg

±3.4%

Pricing rich

The options market is pricing in a significant move of about 20.8%, suggesting that traders expect volatility around the earnings announcement.

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 and raises guidance, history suggests the stock could see a positive reaction, typically around a 0.02% increase on the day.

In-Line / Cautious

If results are in line with expectations but lack strong guidance, the stock may experience muted movement as investors weigh future prospects.

Miss

A miss on EPS could lead to a significant downturn, with historical patterns indicating a potential average drop of around 3.36%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches or market expansions.
2Insights into customer demand trends in key sectors like renewable energy and electric vehicles.
3Management's commentary on supply chain stability and cost management.
4Details on any significant contracts or partnerships that could impact future revenue.
5Guidance on expected gross margins and how they plan to maintain profitability.