Power Integrations’ second quarter was defined by both leadership change and shifting demand patterns. The market reacted negatively to results as management called out a marked slowdown in bookings during July, driven by customer caution around tariffs and inventory adjustments—particularly in the appliance segment. Newly appointed CEO Jennifer Lloyd highlighted continued growth in high-voltage GaN products and metering design wins, but also noted that the consumer appliance business is facing short-term pressure from tariffs and a sluggish housing market. CFO Sandeep Nayyar described the booking environment as “nearly 20% below the normal run rate,” prompting a more cautious revenue outlook.

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

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 Q2 Earnings Call

• David Neil Williams (The Benchmark Company): Asked about the risk level in guidance and the recent slowdown in bookings. CFO Sandeep Nayyar explained bookings in July dropped 20% below average, driving a cautious outlook.
• Ross Clark Seymore (Deutsche Bank): Inquired about segment dynamics behind the subdued guidance. Nayyar noted flattish industrial and consumer segments, with appliance weakness offset by gaming design wins.
• Tore Egil Svanberg (Stifel): Questioned whether inventory adjustments are limited to consumer appliances and how long corrections might last. Nayyar responded that front-loading is mainly in appliances and expects the adjustment to last at least two quarters.
• Christopher Adam Jackson Rolland (Susquehanna): Sought details on GaN’s role in AI data centers and competitive positioning. CEO Jennifer Lloyd highlighted engagement across the data center ecosystem and the unique value of high-voltage GaN products.
• Ross Clark Seymore (Deutsche Bank): Asked about channel inventory trends and seasonality. Nayyar replied that inventory levels remain tight and that tariff-driven volatility is complicating normal seasonal trends.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) whether Power Integrations can sustain momentum in GaN and high-power design wins, (2) the pace and profitability of automotive and metering revenue ramp-ups, and (3) signs of normalization in the appliance segment as tariff impacts and inventory adjustments settle. Execution of R&D initiatives and leadership’s ability to align product development with emerging high-voltage applications will also be critical for tracking progress.

Power Integrations currently trades at $47.14, in line with $47.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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