Key Highlights

  • GAAP Net Income reached USD 18.3 million, or USD 0.32 a diluted share, reversing a USD 0.02 per-share loss logged a year earlier in the third quarter.
  • Adjusted, non-GAAP profit reached USD 0.46 per diluted share, compared with USD 0.37 the prior quarter and USD 0.36 a year before.
  • Revenue of USD 125.5 million grew 5% sequentially and 6% from a year earlier, lifted by PowiGaN devices and industrial customers.
  • The fourth-quarter Revenue outlook spans USD 118.0 million to USD 126.0 million, while the quarterly Dividend is slated to increase to USD 0.22 a share in 2027.

PowiGaN and Industrial Strength Push Third-Quarter Sales Higher

On November 4, 2026, Power Integrations (NASDAQ:POWI) released its third-quarter results. Sales hit USD 125.5 million, which exceeds the USD 118.9 million recorded in the second quarter, while the year-earlier comparison of USD 118.9 million rounds to the same figure. The chief executive pointed to PowiGaN products and continued industrial demand, with industrial revenue up 13% year to date. Its high-voltage semiconductors handle power conversion for AI data centers, EVs and high-voltage DC grids. Nine-month sales came to USD 352.7 million, compared with USD 340.3 million a year before. Management argued that power availability is turning into a constraint as AI and electrification expand.

Lower Operating Spend and a Litigation Reserve Reversal Lift Earnings

GAAP net income totaled USD 18.3 million, or USD 0.32 a diluted share. On a non-GAAP basis, profit was USD 26.1 million, or USD 0.46 a diluted share, after backing out stock-based pay, acquired-intangible amortization, a legal judgment accrual and tax effects. Gross Margin stood at 55.6% GAAP and 55.2% non-GAAP. Operating expenses declined to USD 50.6 million from USD 68.8 million, when other operating expenses had totaled USD 14.3 million. This quarter contained a USD 2.0 million Credit tied to a settled legal judgment and a smaller reserve, so part of the swing from loss to profit comes from that one-time item. Research and Development dropped to USD 25.1 million from USD 26.7 million. Taken together, the non-GAAP view gives a steadier read on operations than the GAAP swing does. Those movements are the main drivers behind the quarter's bottom-line pattern.

Fourth-Quarter Guide, Cash Position and Share Repurchases

The company expects fourth-quarter revenue between USD 118.0 million and USD 126.0 million, which implies a calculated midpoint of USD 122.0 million, below the USD 125.5 million just delivered. GAAP gross margin should land between 54.0% and 55.0%, non-GAAP operating expenses between USD 42.5 million and USD 43.5 million, and non-GAAP Operating Margin between 19.0% and 21.0%. Cash and equivalents grew from USD 58.8 million at the start of the year to USD 96.8 million, and short-term investments totaled USD 191.3 million. Operating Cash Flow reached USD 42.6 million, while Buybacks were zero this quarter against USD 42.4 million a year earlier.

Where Things Stand

Partly. Revenue growth and a stronger gross margin are real, but the GAAP move from a loss also reflects lower operating expenses and a legal reserve reduction. Power Integrations (NASDAQ:POWI) set its fourth-quarter sales outlook with a midpoint a little below the third quarter, so durability rests on PowiGaN, industrial and Data Center demand. Next up: fourth-quarter numbers, the USD 0.215 payment due December 31, 2026 and the planned step-up to USD 0.22 quarterly in 2027.