Key Highlights

  • GAAP Net Income was USD 18.3 million, or USD 0.32 per diluted share, in the third quarter of 2026, against a net loss of USD 0.02 per diluted share a year earlier.
  • Non-GAAP Earnings were USD 0.46 per diluted share, up from USD 0.37 in the prior quarter and USD 0.36 in the third quarter of 2025.
  • Revenue of USD 125.5 million rose 5% from the prior quarter and 6% from a year earlier, driven by PowiGaN products and industrial demand.
  • Fourth-quarter Revenue is guided to USD 118.0 million to USD 126.0 million, and the quarterly Dividend is set to rise to USD 0.22 per share in 2027.

PowiGaN and Industrial Demand Lift Third-Quarter Revenue

Power Integrations (NASDAQ:POWI) reported third-quarter results on November 4, 2026. Revenue was USD 125.5 million, up from USD 118.9 million in the second quarter and USD 118.9 million in the third quarter of 2025. The chief executive attributed the sequential growth to PowiGaN products and continued strength in the industrial market, where revenue is up 13% year to date. The company designs high-voltage semiconductor technology used in power conversion, including for AI data centers, electric vehicles and high-voltage DC infrastructure. Nine-month revenue was USD 352.7 million against USD 340.3 million a year earlier. Management said power is becoming a constraint because of AI and electrification.

A Legal Reserve Release and Lower Costs Help Earnings

GAAP net income was USD 18.3 million, or USD 0.32 per diluted share, versus USD 0.17 in the prior quarter. Non-GAAP net income was USD 26.1 million, or USD 0.46 per diluted share, excluding stock-based compensation, amortization of acquired intangibles, a legal judgment accrual and tax effects. Gross Margin was 55.6% on a GAAP basis and 55.2% non-GAAP. Operating expenses fell to USD 50.6 million from USD 68.8 million a year earlier, when other operating expenses were USD 14.3 million. This quarter showed a USD 2.0 million Credit after a legal judgment was settled and the related reserve reduced. The company credited expense discipline, so part of the swing from a loss reflects that item. Research and Development spending was USD 25.1 million against USD 26.7 million.

Fourth-Quarter Guide Implies a Revenue Step Down at the Midpoint

For the fourth quarter, the company expects revenue of USD 118.0 million to USD 126.0 million, which has a midpoint of USD 122.0 million, calculated, below the USD 125.5 million just reported. GAAP gross margin is guided to 54.0% to 55.0%, non-GAAP operating expenses to USD 42.5 million to USD 43.5 million, and non-GAAP Operating Margin to 19.0% to 21.0%. Cash and equivalents rose to USD 96.8 million from USD 58.8 million at the start of the year, with short-term investments of USD 191.3 million. Operating Cash Flow was USD 42.6 million, and no shares were repurchased in the quarter against USD 42.4 million a year earlier.

Where Things Stand

Not entirely. Revenue growth and a higher gross margin are real drivers, but the GAAP swing from a loss also reflects lower operating expenses and a legal reserve reduction. Power Integrations (NASDAQ:POWI) guided fourth-quarter revenue to a range whose calculated midpoint is slightly below the third quarter, so durability depends on PowiGaN, industrial and Data Center demand. Next markers are fourth-quarter results, the USD 0.215 dividend payable December 31, 2026 and the planned increase to USD 0.22 a quarter in 2027.