Navitas Q3 Revenue Rises 38% as AI Infrastructure Mix Expands

Navitas Semiconductor reported a return to year-over-year revenue growth in the third quarter of 2026 as its shift toward high-power applications, particularly AI infrastructure, reduced its reliance on mobile and lower-end consumer products. Revenue reached $14.0 million, up 33% from the second quarter and 38% from $10.1 million a year earlier.

The power-semiconductor company expects that transition to continue in the fourth quarter, when AI infrastructure is projected to account for more than 40% of sales and mobile is expected to fall below 5% of the revenue mix. Navitas defines AI infrastructure as AI data centers plus energy and grid infrastructure.

Margins expand as revenue grows

Third-quarter GAAP gross profit was $3.0 million, representing a gross margin of 21.5%. That compared with a 0.4% GAAP gross margin in the second quarter and a negative 2.0% margin in the third quarter of 2025.

On a non-GAAP basis, gross profit rose to $5.6 million and gross margin expanded to 40.0%, from 39.5% in the preceding quarter and 38.7% a year earlier. Navitas attributed its margin outlook to a more favorable product mix and increased scale.

GAAP operating expenses were $39.9 million, while non-GAAP operating expenses totaled $16.5 million, up from $15.5 million in the second quarter. The non-GAAP calculation excluded stock-based compensation, other expenses, intangible-asset amortization, restructuring and impairment charges, and transformation-related costs. Cash declined to $531 million from $557 million at the end of the second quarter.

High-power markets drive the portfolio shift

Navitas said its transformation into a high-power semiconductor company is essentially complete. Its four target markets are AI data centers, energy and grid infrastructure, high-performance computing, and industrial electrification. The company has reallocated resources away from mobile and lower-end consumer products toward these areas.

Its technology portfolio spans gallium nitride, high- and ultra-high-voltage silicon carbide, and integrated voltage regulator technology, covering power delivery from the electrical grid to processors. Navitas expects fiscal 2026 high-power revenue to increase 125% from 2025.

The company also expects AI infrastructure revenue to grow by about three times in 2027. This is a management projection rather than a reported result and depends on customer programs and applications progressing as anticipated. Navitas identified battery energy storage systems and solid-state transformers in grid applications, as well as AC/DC, DC/DC and battery-backup systems in AI data centers, among the areas supporting design conversions.

Operational initiatives include initial deliveries of U.S.-produced Gen-5 GaNFast devices from GlobalFoundries and the strategic accumulation of inventory to support expected data-center ramps and a fabrication transition. Navitas said its integrated fabless manufacturing model is intended to retain ownership of technology and process intellectual property while using partners for manufacturing scale.

Fourth-quarter and full-year outlook

For the fourth quarter, Navitas guided to revenue of $16.0 million, plus or minus $0.5 million. The midpoint would represent approximately 14% sequential growth and mark the company’s highest quarterly revenue in seven quarters.

Non-GAAP gross margin is expected to be 40.5%, plus or minus one percentage point. Non-GAAP operating expenses, including Claros, are projected at $25 million, plus or minus $1 million.

For full-year 2026, the company expects revenue of $49.1 million, plus or minus $0.5 million, implying roughly 7% year-over-year growth at the midpoint. Full-year non-GAAP gross margin is projected at approximately 39.9%, with non-GAAP operating expenses of $72 million, plus or minus $1 million.

Management said it plans to use its cash position to invest in grid-to-processor technologies, including high- and ultra-high-voltage silicon carbide, gallium nitride and integrated voltage regulators. It also intends to build strategic inventory while maintaining disciplined operating investment and pursuing a path to profitability.

Navitas cautioned that its outlook relies on assumptions about customer interest, market opportunities, product ramps and financial performance. Actual results could differ because of execution risks, the timing of customer programs, supply-chain requirements and other uncertainties described in the company’s regulatory filings. Navitas did not provide GAAP reconciliations for its forward-looking non-GAAP gross-margin and operating-expense guidance because certain excluded items, including stock-based compensation and restructuring charges, could not be reasonably forecast.