Impinj (NASDAQ:PI) Reports Strong Q2, Inventory Levels Improve

Impinj (NASDAQ:PI) Reports Strong Q2, Inventory Levels Improve

RFID manufacturer Impinj (NASDAQ:PI) reported Q2 CY2026 results exceeding the market's revenue expectations , with sales up 10.7% year on year to $108.4 million. On top of that, next quarter's revenue guidance ($107 million at the midpoint) was surprisingly good and 8.2% above what analysts were expecting. Its non-GAAP profit of $0.86 per share was 8.1% above analysts' consensus estimates.

Is now the time to buy Impinj? Find out in our full research report.

Impinj (PI) Q2 CY2026 Highlights:

Revenue: $108.4 million vs analyst estimates of $104.7 million (10.7% year-on-year growth, 3.5% beat) Adjusted EPS: $0.86 vs analyst estimates of $0.80 (8.1% beat) Adjusted EBITDA: $30.69 million vs analyst estimates of $30.16 million (28.3% margin, 1.8% beat) Revenue Guidance for Q3 CY2026 is $107 million at the midpoint, above analyst estimates of $98.87 million Adjusted EPS guidance for Q3 CY2026 is $0.61 at the midpoint, above analyst estimates of $0.50 EBITDA guidance for Q3 CY2026 is $21.45 million at the midpoint, above analyst estimates of $17.71 million Operating Margin: 9.7%, down from 11.1% in the same quarter last year Free Cash Flow Margin: 26.9%, similar to the same quarter last year Inventory Days Outstanding: 186, down from 208 in the previous quarter Market Capitalization: $4.05 billion

Company Overview

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.

Revenue Growth

Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Impinj grew its sales at an excellent 18.8% compounded annual growth rate. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.Impinj Quarterly Revenue

We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Impinj's recent performance shows its demand has slowed significantly as its annualized revenue growth of 8.6% over the last two years was well below its five-year trend.Impinj Year-On-Year Revenue Growth

This quarter, Impinj reported year-on-year revenue growth of 10.7%, and its $108.4 million of revenue exceeded Wall Street's estimates by 3.5%. Adding to the positive news, Impinj's growth inflected positively this quarter, news that will likely give some shareholders hope. Company management is currently guiding for a 11.4% year-on-year increase in sales next quarter.

Story Continues

Looking further ahead, sell-side analysts expect revenue to grow 12.1% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.

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Product Demand & Outstanding Inventory

Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business's capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.

This quarter, Impinj's DIO came in at 186, which is 12 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past.Impinj Inventory Days Outstanding

Key Takeaways from Impinj's Q2 Results

We were impressed by Impinj's strong improvement in inventory levels. We were also glad its EPS outperformed Wall Street's estimates. Zooming out, we think this was a solid print. The stock traded up 4.6% to $146 immediately following the results.

Impinj put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.

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