Power Integrations, Inc. (POWI) AI Stock Analysis

Power Integrations, Inc. is a San Jose, California-based provider of analog and mixed-signal integrated circuits and components used in high-voltage power conversion. Its core products convert alternating current to direct current for systems spanning under one watt to roughly 500 watts. These solutions power mobile-device chargers, appliances, utility meters, displays, LED lighting, and industrial machinery. The company also produces high-voltage diodes and gate-driver products under the SCALE and SCALE-2 families to manage high-voltage switches such as IGBTs and silicon-carbide MOSFETs. Its SCALE-iDriver series specifically addresses electric vehicle powertrain and charging applications across a global customer base of OEMs and merchant power supply manufacturers.

Power Integrations saw revenue drop from $703.3M in FY2021 to $419.0M in FY2024 before climbing 5.9% to $443.5M in FY2025, yielding a 5-year revenue CAGR of -1.9%. Gross margin has remained resilient, moving from 51.3% in FY2021 to 54.5% in FY2025. However, net margin narrowed from 23.4% in FY2021 to 5.0% in FY2025, with EPS dropping from $3.26 to $0.95 over the same span as R&D expense expanded to $101.1M. Over the trailing twelve months, revenue reached $449.4M with an operating margin of 7.5% and EPS of $0.44. In the latest quarter ending June 30, 2026, quarterly revenue grew 2.7% year-over-year while quarterly earnings grew 750.0%.

As of June 30, 2026, Power Integrations held $262.6M in cash and short-term investments, supporting total assets of $779.0M and shareholders' equity of $680.5M. Its liquidity profile shows a current ratio of 7.07. In FY2025, the business delivered operating cash flow of $111.5M and free cash flow of $87.1M. Capital allocation in FY2025 included $24.4M in capital expenditures, $47.2M paid in dividends, and $98.1M in share buybacks, which contributed to an 11.0% reduction in share count over 5 years.

Power Integrations trades at a trailing P/E of 101.1x and a forward P/E of 25.0x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its enterprise value stands at $2.61B, which translates to an EV/EBITDA of 54.8x versus the peer median of 16.6x, and a price-to-sales ratio of 5.5x against the peer median of 2.8x. At its last close of $44.50 on October 16, 2026, the stock has gained 26.6% year-to-date but fell 3.7% over the trailing 1-year period, underperforming the S&P 500 return of 16.8%.

Power Integrations pays a quarterly dividend, supported by 19 consecutive years of payments. The annualized forward dividend is $0.86, translating to a dividend yield of 1.93%. The company's 5-year annualized dividend growth rate is 14.9%, though its payout ratio reached 115.5%. The last ex-dividend date was August 31, 2026.

Consensus ratings from 5 analysts include 2 Strong Buy, 1 Buy, and 2 Hold recommendations. The mean price target is $75.50, representing a 69.7% increase above the last close of $44.50. For the fiscal year ending December 31, 2026, consensus estimates target revenue of $477.4M and EPS of $1.39, reflecting 11.2% EPS growth. The company has beaten EPS expectations in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Power Integrations, Inc. (POWI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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