Power Integrations (POWI)

Q: What's priced into Power Integrations (POWI) stock?

The valuation is expensive versus peers, with a durable premium and only a small expectations gap. Pricing is tagged as justified, and fragility is low, so the evidence does not point to unusually high near-term expectations already embedded in the valuation.

Q: What does the Power Integrations (POWI) outlook hinge on?

The next call is an important test: a guidance cut would be a meaningful negative, while delivery within the stated revenue range would support the current execution picture. Over the multi-year view, the thesis also depends on maintaining margin and cost discipline. Fed rate cuts and continued strength among major technology companies are potential sector tailwinds, but do not replace company execution.

NASDAQInformation TechnologySemiconductorsSnapshot 2026-10-23

$46.98-0.30%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Power Integrations’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

Comparable estimates unavailable

+10% or more+5%0%−5%−10% or less

A matching fiscal period and sufficient coverage are required.

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

The calculation requires same-period, same-provider snapshots, positive EPS, at least five analysts and a baseline within three days of the requested lookback.

Measure / period	Management expectations	Analyst expectations
FY 2026 · Q3
Revenue	$122M–$130M	—
Gross margin	53.3%–54.4% 54%–55%non-GAAP	—
Operating expenses	$55M–$56MGAAP $45M–$46Mnon-GAAP	—
Operating margin	8.3%–10.9%GAAP 17%–19%non-GAAP	—
FY 2026 · Q4
Revenue	—	124.38M
EPS	—	0.403
FY 2026 · Annual
Revenue	—	477.68M
EPS	—	1.4
FY 2027 · Annual
Revenue	—	540.5M
EPS	—	1.86

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Maintain gross margin between 53.5% and 54.5%	It aims to keep gross margin near 54%.	Intact	gross margin falls below 53.5% next quarter	Gross margin: 54.34% FY2026-Q2; GAAP. Published target: >=53.5% and <=54.5%. The target does not explicitly identify fiscal versus calendar quarters. Source published Aug 6, 202654.344664 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: 1a2af702-feac-44bd-957f-3b77ae24e215. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. GAAP gross margin improved from 52.6% in 2026-Q1 to 54.3% in 2026-Q2, aligning with management's guidance range of 53.3% to 54.5%. The trajectory shows progress toward maintaining targeted gross margin levels. Delivery assessment Oct 24, 2026
Control operating expenses between $55M and $56M	A supporting condition in Power Integrations's published investment case. The stated target is >=55M and <=56M USD.	Intact	operating expenses exceed $56M next quarter	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. GAAP operating expenses were $55.5 million in 2026-Q1 and $55.7 million in 2026-Q2, consistent with management's guidance to keep expenses between $55 million and $56 million. The company is delivering on its cost control commitment. Delivery assessment Oct 24, 2026
Achieve revenue between $115M and $120M	A primary condition in Power Integrations's published investment case. The stated target is >=115M and <=120M USD.	Intact	revenue falls below $115M next quarter	Revenue: $118.939M FY2026-Q2; GAAP. Published target: >=115M and <=120M USD. The target does not explicitly identify fiscal versus calendar quarters. Source published Aug 6, 2026118,939,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: 1a2af702-feac-44bd-957f-3b77ae24e215. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPSUnavailable

Unavailable → Unavailable · observed estimates

FY2027 revenueUnavailable

Unavailable → Unavailable · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	Unavailable	Unavailable	4 / 4
2026-07-25	$1.85	$546,771,870	5 / 5
2026-07-26	$1.85	$546,771,870	5 / 5
2026-07-27	$1.85	$546,771,870	5 / 5
2026-07-28	$1.85	$546,771,870	5 / 5
2026-07-29	$1.85	$546,771,870	5 / 5
2026-07-30	$1.85	$546,771,870	5 / 5
2026-07-31	Unavailable	Unavailable	4 / 4
2026-08-01	Unavailable	Unavailable	4 / 4
2026-08-02	$1.85	$546,771,870	5 / 5
2026-08-03	Unavailable	Unavailable	4 / 4
2026-08-04	$1.85	$546,771,870	5 / 5
2026-08-05	Unavailable	Unavailable	4 / 4
2026-08-06	$1.85	$546,771,870	5 / 5
2026-08-07	Unavailable	Unavailable	4 / 4
2026-08-08	Unavailable	Unavailable	4 / 4
2026-08-09	Unavailable	Unavailable	4 / 4
2026-08-10	$1.87	$545,371,870	5 / 5
2026-08-12	$1.87	$545,371,870	5 / 5
2026-08-13	Unavailable	Unavailable	4 / 4
2026-08-14	Unavailable	Unavailable	4 / 4
2026-08-15	Unavailable	Unavailable	4 / 4
2026-08-16	Unavailable	Unavailable	4 / 4
2026-08-17	Unavailable	Unavailable	4 / 4
2026-08-18	Unavailable	Unavailable	4 / 4
2026-08-19	Unavailable	Unavailable	4 / 4
2026-08-20	Unavailable	Unavailable	4 / 4
2026-08-21	Unavailable	Unavailable	4 / 4
2026-08-22	Unavailable	Unavailable	4 / 4
2026-08-23	Unavailable	Unavailable	4 / 4
2026-08-24	Unavailable	Unavailable	4 / 4
2026-08-25	Unavailable	Unavailable	4 / 4
2026-08-26	Unavailable	Unavailable	4 / 4
2026-08-27	Unavailable	Unavailable	4 / 4
2026-08-28	Unavailable	Unavailable	4 / 4
2026-08-29	Unavailable	Unavailable	4 / 4
2026-08-30	Unavailable	Unavailable	4 / 4
2026-08-31	Unavailable	Unavailable	4 / 4
2026-09-01	Unavailable	Unavailable	4 / 4
2026-09-02	Unavailable	Unavailable	4 / 4
2026-09-03	Unavailable	Unavailable	4 / 4
2026-09-04	Unavailable	Unavailable	4 / 4
2026-09-05	Unavailable	Unavailable	4 / 4
2026-09-06	Unavailable	Unavailable	4 / 4
2026-09-07	Unavailable	Unavailable	4 / 4
2026-09-08	Unavailable	Unavailable	4 / 4
2026-09-09	Unavailable	Unavailable	4 / 4
2026-09-10	Unavailable	Unavailable	4 / 4
2026-09-11	Unavailable	Unavailable	4 / 4
2026-09-12	Unavailable	Unavailable	4 / 4
2026-09-13	Unavailable	Unavailable	4 / 4
2026-09-14	Unavailable	Unavailable	4 / 4
2026-09-15	Unavailable	Unavailable	4 / 4
2026-09-16	Unavailable	Unavailable	4 / 4
2026-09-17	Unavailable	Unavailable	4 / 4
2026-09-18	Unavailable	Unavailable	4 / 4
2026-09-19	Unavailable	Unavailable	4 / 4
2026-09-20	Unavailable	Unavailable	4 / 4
2026-09-21	Unavailable	Unavailable	4 / 4
2026-09-22	Unavailable	Unavailable	4 / 4
2026-09-23	Unavailable	Unavailable	4 / 4
2026-09-24	Unavailable	Unavailable	4 / 4
2026-09-25	Unavailable	Unavailable	4 / 4
2026-09-26	Unavailable	Unavailable	4 / 4
2026-09-27	Unavailable	Unavailable	4 / 4
2026-09-28	Unavailable	Unavailable	4 / 4
2026-09-29	Unavailable	Unavailable	4 / 4
2026-09-30	Unavailable	Unavailable	4 / 4
2026-10-01	Unavailable	Unavailable	4 / 4
2026-10-02	Unavailable	Unavailable	4 / 4
2026-10-03	Unavailable	Unavailable	4 / 4
2026-10-04	Unavailable	Unavailable	4 / 4
2026-10-05	Unavailable	Unavailable	4 / 4
2026-10-06	Unavailable	Unavailable	4 / 4
2026-10-07	Unavailable	Unavailable	4 / 4
2026-10-08	Unavailable	Unavailable	4 / 4
2026-10-09	Unavailable	Unavailable	4 / 4
2026-10-10	Unavailable	Unavailable	4 / 4
2026-10-11	Unavailable	Unavailable	4 / 4
2026-10-12	Unavailable	Unavailable	4 / 4
2026-10-13	Unavailable	Unavailable	4 / 4
2026-10-14	Unavailable	Unavailable	4 / 4
2026-10-15	Unavailable	Unavailable	4 / 4
2026-10-16	Unavailable	Unavailable	4 / 4
2026-10-17	Unavailable	Unavailable	4 / 4
2026-10-18	Unavailable	Unavailable	4 / 4
2026-10-19	Unavailable	Unavailable	4 / 4
2026-10-20	Unavailable	Unavailable	4 / 4
2026-10-21	Unavailable	Unavailable	4 / 4
2026-10-22	Unavailable	Unavailable	4 / 4
2026-10-23	Unavailable	Unavailable	4 / 4
2026-10-24	Unavailable	Unavailable	4 / 4

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	3	2
2026-06-01	3	2
2026-07-01	3	2
2026-08-01	3	2
2026-09-01	3	2
2026-10-01	3	2

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 3 Buy / Strong Buy · 2 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades2 maintains

Recent actions · Sep 25–Oct 24 · 2 recorded

Price-target changes

30 days

○ Previous · ● Latest · common dollar scale

Stifel NicolausOct 5

$72.00New observation · no comparable prior

$0$39.60$79.20

0 raises · 0 cuts · 0 unchanged · 1 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Maintain gross margin between 53.5% and 54.5%Gross margin: 54.34%
Control operating expenses between $55M and $56MDirect metric needs a verified mapping
Achieve revenue between $115M and $120MRevenue: $118.939M

Next proof point

Nov 4, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

2.1%Typical daily move · historical

Downside history

-49.1%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Power Integrations outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

POWI is a quality-oriented growth business, with a multi-year view that depends on sustaining revenue growth and margins. The thesis is intact, but recent momentum and quality measures have weakened, and overall risk is elevated.

What's priced into Power Integrations

The valuation is expensive versus peers, with a durable premium and only a small expectations gap. Pricing is tagged as justified, and fragility is low, so the evidence does not point to unusually high near-term expectations already embedded in the valuation.

What the fundamentals likely do

Near term, revenue grew 9.8% sequentially in 2026-Q2, and management guided to further growth in Q3. Operating expenses stayed within the stated range, while gross margin improved but remains a mixed priority; recent momentum and quality measures also fell. The estimated miss risk is low, but a prior deep miss and recent peer misses remain cautions.

What Power Integrations hinges on

The next call is an important test: a guidance cut would be a meaningful negative, while delivery within the stated revenue range would support the current execution picture. Over the multi-year view, the thesis also depends on maintaining margin and cost discipline. Fed rate cuts and continued strength among major technology companies are potential sector tailwinds, but do not replace company execution.

Bottom line

Over the next 1 to 3 years, POWI’s long-term thesis rests on continued revenue growth and steady operating discipline, against elevated risk and an expensive peer valuation. The thesis remains intact, but the recent weakening in momentum makes execution worth watching. Not investment advice.

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.

Measure / period	Management expectations	Analyst expectations
FY 2026 · Q3
Revenue	$122M–$130M	—
Gross margin	53.3%–54.4% 54%–55%non-GAAP	—
Operating expenses	$55M–$56MGAAP $45M–$46Mnon-GAAP	—
Operating margin	8.3%–10.9%GAAP 17%–19%non-GAAP	—
FY 2026 · Q4
Revenue	—	124.38M
EPS	—	0.403
FY 2026 · Annual
Revenue	—	477.68M
EPS	—	1.4
FY 2027 · Annual
Revenue	—	540.5M
EPS	—	1.86

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPSUnavailable

Unavailable → Unavailable · observed estimates

FY2027 revenueUnavailable

Unavailable → Unavailable · observed estimates

Exact estimates & source dates

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	Unavailable	Unavailable	4 / 4
2026-07-25	$1.85	$546,771,870	5 / 5
2026-07-26	$1.85	$546,771,870	5 / 5
2026-07-27	$1.85	$546,771,870	5 / 5
2026-07-28	$1.85	$546,771,870	5 / 5
2026-07-29	$1.85	$546,771,870	5 / 5
2026-07-30	$1.85	$546,771,870	5 / 5
2026-07-31	Unavailable	Unavailable	4 / 4
2026-08-01	Unavailable	Unavailable	4 / 4
2026-08-02	$1.85	$546,771,870	5 / 5
2026-08-03	Unavailable	Unavailable	4 / 4
2026-08-04	$1.85	$546,771,870	5 / 5
2026-08-05	Unavailable	Unavailable	4 / 4
2026-08-06	$1.85	$546,771,870	5 / 5
2026-08-07	Unavailable	Unavailable	4 / 4
2026-08-08	Unavailable	Unavailable	4 / 4
2026-08-09	Unavailable	Unavailable	4 / 4
2026-08-10	$1.87	$545,371,870	5 / 5
2026-08-12	$1.87	$545,371,870	5 / 5
2026-08-13	Unavailable	Unavailable	4 / 4
2026-08-14	Unavailable	Unavailable	4 / 4
2026-08-15	Unavailable	Unavailable	4 / 4
2026-08-16	Unavailable	Unavailable	4 / 4
2026-08-17	Unavailable	Unavailable	4 / 4
2026-08-18	Unavailable	Unavailable	4 / 4
2026-08-19	Unavailable	Unavailable	4 / 4
2026-08-20	Unavailable	Unavailable	4 / 4
2026-08-21	Unavailable	Unavailable	4 / 4
2026-08-22	Unavailable	Unavailable	4 / 4
2026-08-23	Unavailable	Unavailable	4 / 4
2026-08-24	Unavailable	Unavailable	4 / 4
2026-08-25	Unavailable	Unavailable	4 / 4
2026-08-26	Unavailable	Unavailable	4 / 4
2026-08-27	Unavailable	Unavailable	4 / 4
2026-08-28	Unavailable	Unavailable	4 / 4
2026-08-29	Unavailable	Unavailable	4 / 4
2026-08-30	Unavailable	Unavailable	4 / 4
2026-08-31	Unavailable	Unavailable	4 / 4
2026-09-01	Unavailable	Unavailable	4 / 4
2026-09-02	Unavailable	Unavailable	4 / 4
2026-09-03	Unavailable	Unavailable	4 / 4
2026-09-04	Unavailable	Unavailable	4 / 4
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2026-09-06	Unavailable	Unavailable	4 / 4
2026-09-07	Unavailable	Unavailable	4 / 4
2026-09-08	Unavailable	Unavailable	4 / 4
2026-09-09	Unavailable	Unavailable	4 / 4
2026-09-10	Unavailable	Unavailable	4 / 4
2026-09-11	Unavailable	Unavailable	4 / 4
2026-09-12	Unavailable	Unavailable	4 / 4
2026-09-13	Unavailable	Unavailable	4 / 4
2026-09-14	Unavailable	Unavailable	4 / 4
2026-09-15	Unavailable	Unavailable	4 / 4
2026-09-16	Unavailable	Unavailable	4 / 4
2026-09-17	Unavailable	Unavailable	4 / 4
2026-09-18	Unavailable	Unavailable	4 / 4
2026-09-19	Unavailable	Unavailable	4 / 4
2026-09-20	Unavailable	Unavailable	4 / 4
2026-09-21	Unavailable	Unavailable	4 / 4
2026-09-22	Unavailable	Unavailable	4 / 4
2026-09-23	Unavailable	Unavailable	4 / 4
2026-09-24	Unavailable	Unavailable	4 / 4
2026-09-25	Unavailable	Unavailable	4 / 4
2026-09-26	Unavailable	Unavailable	4 / 4
2026-09-27	Unavailable	Unavailable	4 / 4
2026-09-28	Unavailable	Unavailable	4 / 4
2026-09-29	Unavailable	Unavailable	4 / 4
2026-09-30	Unavailable	Unavailable	4 / 4
2026-10-01	Unavailable	Unavailable	4 / 4
2026-10-02	Unavailable	Unavailable	4 / 4
2026-10-03	Unavailable	Unavailable	4 / 4
2026-10-04	Unavailable	Unavailable	4 / 4
2026-10-05	Unavailable	Unavailable	4 / 4
2026-10-06	Unavailable	Unavailable	4 / 4
2026-10-07	Unavailable	Unavailable	4 / 4
2026-10-08	Unavailable	Unavailable	4 / 4
2026-10-09	Unavailable	Unavailable	4 / 4
2026-10-10	Unavailable	Unavailable	4 / 4
2026-10-11	Unavailable	Unavailable	4 / 4
2026-10-12	Unavailable	Unavailable	4 / 4
2026-10-13	Unavailable	Unavailable	4 / 4
2026-10-14	Unavailable	Unavailable	4 / 4
2026-10-15	Unavailable	Unavailable	4 / 4
2026-10-16	Unavailable	Unavailable	4 / 4
2026-10-17	Unavailable	Unavailable	4 / 4
2026-10-18	Unavailable	Unavailable	4 / 4
2026-10-19	Unavailable	Unavailable	4 / 4
2026-10-20	Unavailable	Unavailable	4 / 4
2026-10-21	Unavailable	Unavailable	4 / 4
2026-10-22	Unavailable	Unavailable	4 / 4
2026-10-23	Unavailable	Unavailable	4 / 4
2026-10-24	Unavailable	Unavailable	4 / 4

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings