At a glance
Power Integrations Inc is worth $2.76B, about 127 times its fiscal 2025 earnings. Revenue grew 5.9% to $443.5M in fiscal 2025, with 5.0% kept as profit; over 5 years it has grown 1.9% a year. It pays a 1.75% dividend yield, raised every year for at least 9 years, and returned $777.6M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +17.7% over the past year with dividends reinvested and −13.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 21.7% in the 2020 crash (S&P 500: 33.7%) and 35.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 9 months after the lows.
The business in plain English
Power Integrations designs chips for high-voltage power conversion. A large share of its products are integrated circuits (ICs, chips that combine many electronic parts) for AC-DC power supplies. These turn high-voltage alternating current from a wall outlet into the low-voltage direct current that electronics need. They end up in phone and laptop chargers, appliances, smart meters, power tools and industrial controls. It also offers LED-lighting drivers and motor-driver chips for appliances and fans. Its gate drivers control the big switches in industrial motors, solar and wind systems, electric locomotives, electric vehicles (EVs) and power transmission.
Its selling point is integration. One chip replaces many separate parts, so customers get smaller, more efficient and more reliable designs and finish them faster. Sales go through distributors, and customers have no long-term contracts. Growth depends on winning more designs and new markets. The company puts the market it can serve at about $5 billion. It has used its own gallium-nitride (GaN) transistors, a more efficient alternative to silicon, since 2019. It is developing higher-power GaN products for AI data centers, network equipment and onboard EV chargers.
Revenue was $443.5 million in fiscal 2025. By region, Hong Kong and China took 55.4%, South Korea 8.9%, Germany 6.1% and the US just 5.2%.
Price history
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POWI +17.7% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| Hong Kong China Domain | $245.9M | 55.4% |
| KR | $39.5M | 8.9% |
| Other Countries | $35.8M | 8.1% |
| DE | $27.2M | 6.1% |
| TW | $25.5M | 5.8% |
| IN | $23.6M | 5.3% |
| Emea Other Than Germany | $23.0M | 5.2% |
| US | $22.9M | 5.2% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $118.9M, up 2.7% from a year earlier, and net income was $9.8M (+618.3%).
- For fiscal 2025, revenue was $443.5M (+5.9% year over year; -1.9% a year from FY2020 to FY2025) with a 5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | -1.9% weak |
|---|---|
| Operating margin | 2.3% weak |
| Free cash flow margin | 19.6% good |
| Return on equity (FY2025) | 3.3% weak |
| Return on assets (FY2025) | 2.9% weak |
| Cash and investments | $262.6M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $488.3M | $71.2M | $55.0M |
| FY2021 | $703.3M | $164.4M | $183.6M |
| FY2022 | $651.1M | $170.9M | $176.1M |
| FY2023 | $444.5M | $55.7M | $44.9M |
| FY2024 | $419.0M | $32.2M | $63.9M |
| FY2025 | $443.5M | $22.1M | $87.1M |
Valuation snapshot
| Market value | $2.76B |
|---|---|
| P/E ratio | 126.5 |
| Dividend yield | 1.75% |
Rank among 1514 US companies
Market value at each year end
Power Integrations’s market value went from $1.98B at the end of 2016 to $2.76B on Oct 28, 2026, up 39%; since the end of 2025 it is up 40%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.76B | +40.1% |
| 2025 | $1.97B | -43.9% |
| 2024 | $3.51B | -24.8% |
| 2023 | $4.67B | +13.8% |
| 2022 | $4.10B | -26.8% |
| 2021 | $5.60B | +14.4% |
| 2020 | $4.90B | +68.4% |
| 2019 | $2.91B | +62.7% |
| 2018 | $1.79B | -18.2% |
| 2017 | $2.19B | +10.5% |
| 2016 | $1.98B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| POWI price data to Oct 28, 2026 | +40.4% | +17.7% | -9.7% | -13.3% | +5.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +40.4% |
| 2025 | -41.3% |
| 2024 | -24.0% |
| 2023 | +15.6% |
| 2022 | -22.1% |
| 2021 | +14.1% |
| 2020 | +66.8% |
| 2019 | +63.6% |
| 2018 | -16.3% |
| 2017 | +9.3% |
| 2016 | +40.9% |
| 2015 | -5.1% |
| 2014 | -6.6% |
| 2013 | +67.2% |
| 2012 | +1.9% |
| 2011 | -17.0% |
| 2010 | +11.1% |
| 2009 | +83.8% |
| 2008 | -42.2% |
| 2007 | +46.8% |
| 2006 | -1.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 43.3% over that stretch · deepest drop along the way 57.5%, back to its old high 10.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.3% over that stretch · deepest drop along the way 21.7%, back to its old high 1.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 31.7% over that stretch · deepest drop along the way 35.7%, back to its old high 9 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 27 sales ($29.8M).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 28, 2026 | Balu Balakrishnan Director | sell | $8.2M |
| May 26, 2026 | Balu Balakrishnan Director | sell | $5.8M |
| May 26, 2026 | Balu Balakrishnan Director | sell | $3.9M |
| May 21, 2026 | Balu Balakrishnan Director | sell | $3.8M |
| May 28, 2026 | Balu Balakrishnan Director | sell | $2.5M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.9% | Dec 31, 2025 |
| Vanguard Portfolio Management | 9.05% | Mar 31, 2026 |
| STATE STREET CORPORATION | 6.1% | Dec 31, 2025 |
| Wellington Management Group LLP | 6% | Mar 31, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
| Neuberger Berman Group LLC | 4.5% | May 31, 2026 |
ETFs with the most weight in POWI
| TDV ProShares S&P Technology Dividend Aristocrats ETF | 2.3% |
| MOTO SmartETFs Smart Transportation & Technology ETF | 2.27% |
| SMHX VanEck Fabless Semiconductor ETF | 2.1% |
| QCLN First Trust NASDAQ Clean Edge Green Energy Index Fund | 1.9% |
| SMDV ProShares Russell 2000 Dividend Growers ETF | 0.79% |
| SCDS JPMorgan Fundamental Data Science Small Core ETF | 0.51% |
| QQQS Invesco NASDAQ Future Gen 200 ETF | 0.47% |
| MMSC First Trust Multi-Manager Small Cap Opportunities ETF | 0.34% |
What could go wrong
- More than half of sales tied to China. Hong Kong and China made up 55.4% of fiscal 2025 revenue. Tariffs, changes in trade policy or political conflict could cut demand for the products that use its chips.
- Reliance on appliances and phone chargers. A few uses, such as consumer appliances and cellphone chargers, make up a significant share of revenue. If demand for them slips and the company fails to break into new markets, sales fall.
- Cyclical demand and no long-term contracts. The power-supply industry is cyclical, and customers have no long-term contracts. They can cancel or reschedule orders. Revenue fell from $703.3 million in fiscal 2021 to $419.0 million in fiscal 2024.
- Price pressure from intense competition. Rivals in high-voltage power supplies can force price cuts and cost it sales volume. The 10-K says its market grows only modestly because falling component prices largely offset rising unit volumes.
- GaN bets may take years to pay. The company is developing gallium-nitride chips for AI data centers, EV chargers and, later, EV drivetrains. It expects the drivetrain work to take several years, and new products may not win enough customers.
- Outside foundries make its wafers. Power Integrations relies on outside suppliers for wafers, the thin discs its chips are cut from. A shortfall, late delivery or higher cost at those foundries could limit sales or squeeze margins.
Recent events
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released; Executive or board change
- Major agreement signed; Quarterly results released; Restructuring or exit costs; Other company announcement
- Executive or board change; Bylaws or fiscal year changed
- Executive or board change
- Quarterly results released
For income and retirement investors
Power Integrations has raised its dividend for at least nine straight years, and the record may be longer. Dividends per share rose from $0.41 in fiscal 2020 to $0.84 in fiscal 2025. The yield was 1.75% as of October 28, 2026. The catch is that fiscal 2025 dividends were 213.5% of earnings, so profit didn't cover them. They did use only 54.1% of free cash flow (cash left after running and investing in the business). Buybacks were bigger, at $566.3 million over fiscal 2021–2025, against $211.3 million in dividends. As of June 30, 2026, the company held $262.6 million in cash and investments and showed no borrowings.
The shares have been volatile. From peak to low, they fell 57.5% in the 2008 crisis, 21.7% in the 2020 COVID crash and 35.7% in the 2022 bear market. They took about 10, 1.4 and 9 months to recover. They also lost 41.3% in calendar 2025. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Power Integrations make money?
It makes money by marketing chips that convert high-voltage electricity into the power devices need. Much of the business is integrated circuits for AC-DC power supplies in chargers, appliances, smart meters and industrial equipment. It also offers LED drivers, motor-driver chips, and gate drivers for high-power systems such as solar and wind installations and electric locomotives. Sales go through distributors. Revenue was $443.5 million in fiscal 2025. Gross margin (the share of revenue left after the direct cost of making the products) was 54.5%.
Does Power Integrations raise its dividend every year?
Yes, for at least nine straight years. Every fiscal year from 2016 to 2025 in SEC filings shows an increase, so the record may be longer. Dividends per share rose from $0.41 in fiscal 2020 to $0.84 in fiscal 2025. The yield was 1.75% as of October 28, 2026. One caution: fiscal 2025 dividends equaled 213.5% of earnings, so profit did not cover them. They used 54.1% of free cash flow.
How much of Power Integrations' revenue comes from China?
More than half. Hong Kong and China accounted for 55.4% of fiscal 2025 revenue, about $245.9 million of $443.5 million. South Korea was next at 8.9%, followed by Germany (6.1%), Taiwan (5.8%) and India (5.3%). The US made up just 5.2%. The 10-K lists reliance on international sales among its risks, along with changes in trade policy such as tariffs. That makes this concentration worth weighing.
Why is Power Integrations' P/E ratio so high?
Because earnings have shrunk. The price-to-earnings (P/E) ratio is the share price divided by a year's earnings per share. As of October 28, 2026, it was 126.5, based on fiscal 2025 diluted earnings of $0.39 per share. That compares with $2.93 in fiscal 2022. Revenue fell from $703.3 million in fiscal 2021 to $443.5 million in fiscal 2025, and the operating margin was just 2.3%. Net income for the quarter ended June 30, 2026, was $9.8 million. That was up 618.3% from a small base a year earlier.
Has Power Integrations stock done well over the long run?
Not over the past five years, though the 10-year record is positive. As of October 28, 2026, the share price was down 51% over five years, a loss of 13.3% a year. It was down 26% over three years but up 70% over ten years, or 5.5% a year. The ride has been bumpy. The stock lost 41.3% in calendar 2025, then gained 40.4% in 2026 through October 28. Its one-year beta of 2.13 means it moved about twice as much as the overall market.