Power Integrations slightly beats  Q4 revenue estimates, announces workforce reduction

Overview

• Semiconductor innovator's Q4 revenue slightly beat analyst expectations

• Net income for Q4 improved from prior quarter

• Company announced workforce reduction and restructuring charge

Outlook

• Power Integrations expects Q1 2026 revenue between $104 mln and $109 mln

• Company forecasts Q1 2026 GAAP gross margin between 52% and 53%

• Power Integrations anticipates a restructuring charge of $3.5 mln to $4.0 mln in Q1 2026

Result Drivers

• INDUSTRIAL GROWTH - Co said industrial category revenue grew 15% in 2025, driven by high-power gate-driver sales

• POWIGAN PRODUCT GROWTH - Revenue from PowiGaN products increased over 40% for the year

• WORKFORCE REDUCTION - Co announced a 7% workforce reduction to align expenses with revenue and invest in growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Power Integrations Inc is $53.00, about 12.2% above its February 4 closing price of $47.25

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBwcgRc7ba

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.