Power Integrations delivered third-quarter results that aligned with Wall Street’s revenue expectations and slightly outperformed on non-GAAP earnings per share. Management attributed the quarter’s performance to a sharp slowdown in appliance orders, which are sensitive to tariffs and macroeconomic weakness, particularly in the U.S. and China. CEO Jennifer Lloyd explained that "appliances make up the bulk of our consumer category," and highlighted that tariffs and preloading of inventory earlier in the year led to significant volatility. Despite these challenges, industrial and data center markets demonstrated resilience, with Lloyd noting continued growth in high-power and automotive segments as bright spots.

Is now the time to buy POWI? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Power Integrations’s Q3 Earnings Call

• Tore Svanberg (Stifel) asked about the consumer segment’s outlook and inventory normalization. CEO Jennifer Lloyd said appliance demand is expected to recover in 2026, but timing remains difficult to predict due to limited visibility.
• Christopher Rolland (Susquehanna) pressed on quarterly segment dynamics, with IR Director Joe Shiffler noting consumer and industrial will drive most of the sequential revenue decline, citing channel inventory and seasonal factors.
• Rolland (Susquehanna) also questioned competitive positioning of GaN versus silicon carbide in data centers. Lloyd stated GaN’s power density and reliability provide advantages, particularly in auxiliary and DC-DC conversion sockets.
• Ross Seymore (Deutsche Bank) inquired about the addressable market and revenue timing for the AI data center business. Lloyd replied it’s too early to estimate, but meaningful revenue is expected after 2027 as new architectures are adopted.
• David Williams (The Benchmark Company) sought details on automotive design wins and market size. Lloyd highlighted content growth in heavy vehicles and strong performance in emergency power supply sockets for passenger EVs.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will closely monitor (1) the pace of inventory normalization and demand recovery in the consumer appliance market, (2) progress on major design wins and revenue traction in AI data center and automotive applications, and (3) execution of organizational realignment to focus on high-growth end markets. The impact of tariffs and macroeconomic trends on core segments will also be important to watch.

Power Integrations currently trades at $35.10, down from $38.94 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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