Power Integrations' Q2 2025: Navigating Contradictions in Automotive Revenue, Industrial Growth, and Market Dynamics

Automotive revenue growth and design wins, industrial revenue growth expectations, impact of tariffs on consumer segment, appliance business performance, and industrial segment growth are the key contradictions discussed in Power Integrations' latest 2025Q2 earnings call.



Revenue and Segment Performance:
- Power Integrations reported revenue of $116 million for Q2 2025, up 9% year-over-year, with industrial sales increasing by nearly 30% from the prior quarter.
- The growth was led by strength in metering, home and building automation, and high power, including solar energy and DC transmission, while communication revenues increased by more than 20% sequentially.
- The consumer segment saw a decrease due to softer appliance demand impacted by tariffs and stagnant housing markets.

GaN Product Growth:
- The company's GaN product revenues grew by more than 50% for the first half of the year.
- GaN is driving growth in various applications, including notebooks, TVs, gaming, and metering, with new product introductions and design wins.
- GaN's 1250-volt capability supports higher voltage applications like 800-volt DC architectures in AI data centers, positioning Power Integrations to benefit from the transition to higher voltages.

Leadership Transition:
- Power Integrations appointed Jennifer A. Lloyd as President and CEO, replacing Balu Balakrishnan.
- Lloyd brings extensive experience from Analog Devices, focusing on power business strategy, products, and P&L management.
- The transition aims to drive growth, with Lloyd's experience in high-voltage technology and market-level know-how expected to be a significant advantage.

Automotive and Industrial Sector Outlook:
- The company is expanding in the automotive sector, with design wins in multiple regions and expected material revenue contributions in 2026.
- Industrial growth is expected to continue into 2026, driven by metering, high power, and homebuilding, despite macroeconomic adjustments.
- The strategic focus on automotive and industrial sectors aims to complement and accelerate growth from its core consumer appliance business.