Power Integrations (POWI) Stock Slides As Margin Gains Meet P E Doubts

Simply Wall St.08-07

Power Integrations went into this earnings print with a rich P/E of 131.1x and a stock that had already slipped over the past quarter. The immediate reaction was harsh. The share price fell 4.8% today...

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The share price fell 4.8% today...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-powi/power-integrations/news/power-integrations-powi-stock-slides-as-margin-gains-meet-p\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Power Integrations (POWI) Stock Slides As Margin Gains Meet P E Doubts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPower Integrations (POWI) Stock Slides As Margin Gains Meet P E Doubts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-07 07:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-powi/power-integrations/news/power-integrations-powi-stock-slides-as-margin-gains-meet-p><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Power Integrations went into this earnings print with a rich P/E of 131.1x and a stock that had already slipped over the past quarter. The immediate reaction was harsh. The share price fell 4.8% today...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-powi/power-integrations/news/power-integrations-powi-stock-slides-as-margin-gains-meet-p\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B64QTZ34.USD","symbol_name":"NEUBERGER BERMAN US SMALL CAP \"A\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-powi/power-integrations/news/power-integrations-powi-stock-slides-as-margin-gains-meet-p","article_id":"2657662660","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8212000-choice2-main-header/1585186783100"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-powi/power-integrations/news/power-integrations-powi-stock-slides-as-margin-gains-meet-p","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2657662660","pubTimestamp":1786060140,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Power Integrations went into this earnings print with a rich P/E of 131.1x and a stock that had already slipped over the past quarter. The immediate reaction was harsh. The share price fell 4.8% today to US$58.98. That move jars with a quarter that showed clear earnings progress.\nRevenue reached US$118.9m and non GAAP operating margin reached 17.1%. Free cash flow was about US$18m. The real story for you is not a broken thesis. It is a valuation heavy stock that just posted a solid margin...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B64QTZ34.USD":"NEUBERGER BERMAN US SMALL CAP \"A\" (USD) ACC","BK4141":"半导体产品","POWI":"帕沃英蒂格盛","IE00BLDYK493.USD":"NEUBERGER BERMAN US SMALL CAP \"A\" (USD) INC"},"translate_title":"Power Integrations (POWI) 股价下滑，利润率增长遭遇质疑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"POWI":1.5},"content_text":"Power Integrations went into this earnings print with a rich P/E of 131.1x and a stock that had already slipped over the past quarter. The immediate reaction was harsh. The share price fell 4.8% today to US$58.98. That move jars with a quarter that showed clear earnings progress. Revenue reached US$118.9m and non GAAP operating margin reached 17.1%. Free cash flow was about US$18m. The real story for you is not a broken thesis. It is a valuation heavy stock that just posted a solid margin step up and nudged guidance higher. Is Power Integrations on a justified growth multiple at 131.1x P/E, or has the market priced in too much earnings optimism already? Compare the current valuation drivers in our valuation analysis for Power Integrations. AdvertisementQ2 2026 Earnings Summary  Revenue, Q2 2026 vs. Q2 2025: US$118.9m vs. US$115.9m (up about 3%) Net Income, Q2 2026 vs. Q2 2025: US$9.8m vs. US$1.4m (very large increase) Basic EPS, Q2 2026 vs. Q2 2025: US$0.18 vs. US$0.02 (very large increase) Non GAAP Operating Margin, Q2 2026 vs. Q1 2026: 17.1% vs. roughly 11.7% (expansion of about 540 basis points quarter on quarter)  Prefer clear charts instead of scrolling through dense tables of Power Integrations figures? See the full visual breakdown of the stock, including its valuation picture at a glance, in our company report for Power Integrations. NasdaqGS:POWI Trailing 12-Month Earnings & Revenue History as at Aug 2026 Power Integrations Starts To Prove The High‑Voltage Pivot The bullish story on Power Integrations is that a pivot into high voltage GaN and system level products will replace softer legacy demand with higher quality growth and better margins. Q2 gives some concrete proof points. Revenue is only up modestly year on year, yet non GAAP operating margin has stepped up to 17.1% with guidance pointing to 17 to 19% in Q3. That supports the idea that a richer product mix and tighter cost control are starting to work. On the technology side, the 2,200 V PowiGaN launch and NVIDIA aligned 800 V auxiliary rack designs show the company is building the product set required for AI data centers, EVs and energy infrastructure. Automotive revenue is set to double this year and a Tier 1 micro DC DC, direct current to direct current, win for next year adds another early milestone. The long dated revenue targets are not proven yet, but the operational markers are moving in the right direction. Compare these margin gains and new product wins with how institutions are resetting their expectations. See the consensus price target analysis for Power Integrations Power Integrations Bear Case Still Has Teeth Bearish investors argue that Power Integrations is shifting into high power and automotive before the new engines are large enough to offset structurally weaker legacy businesses. Q2 and the Q3 outlook do not fully remove that worry. Revenue grew only modestly year on year and guidance points to steady rather than sharp acceleration. That matters given prior multiyear declines in revenue, operating margin and EPS. The risk that GaN adoption and AI or EV ramps arrive later than hoped is also still on the table. The 2,200 V PowiGaN platform is a technology demo, not a shipping product, and management talks in multi year timelines for both high voltage data center and larger automotive contributions. With the stock down about 19% over 90 days, the market reaction hints that solid margin progress alone has not yet disproved concerns about timing, scale and execution of the pivot. After a period of volatile trading, insider selling, and one-off items, you might wonder whether this is just the surface. Review our full risk analysis for Power Integrations which shows 4 important warning signs Stay Ahead With Simply Wall St If the mix of solid margin progress and a rich P/E on Power Integrations has your attention, register for free with Simply Wall St and add the stock to a Watchlist to track its share price against fair value and watch how the thesis develops. After you decide to take a position, keep your focus on what matters most with the Portfolio Command Center that highlights only the key financial and fundamental updates. For a broader view on Power Integrations and similar stocks, tap into the crowd wisdom inside the Community and see how other investors are thinking about the same risks and catalysts. This way you can monitor potential turning points earlier, compare possible upside and downside more clearly, and stay a step ahead of the market. Seeking Alternatives Beyond Power Integrations Fresh ideas move first. Stocks with real momentum can be flying one month and fully caught by the crowd the next. Scan these under the radar lists while it matters and get in early.  Hunt for high yield payers that aim to keep cash coming in with 9 dividend fortresses before income focused investors crowd in and compress the best opportunities. Spot under followed quality stories where balance sheets already look robust by using the curated list of solid balance sheet and fundamentals stocks (49 results) while they are still priced as if nobody is watching. Ride the build out of future computing by checking the hand picked 26 quantum computing stocks before enthusiasm spikes and the strongest candidates drop off the bargain list.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? 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