RFID manufacturer Impinj (NASDAQ: PI) announced better-than-expected revenue in Q1 CY2026, but sales were flat year on year at $74.25 million. On top of that, next quarter’s revenue guidance ($104.5 million at the midpoint) was surprisingly good and 8.4% above what analysts were expecting. Its non-GAAP profit of $0.14 per share was in line with analysts’ consensus estimates.

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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

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Impinj’s 21.5% annualized revenue growth over the last five years was exceptional. 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.

Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Impinj’s annualized revenue growth of 10% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Impinj’s $74.25 million of revenue was flat year on year but beat Wall Street’s estimates by 2.4%. Company management is currently guiding for a 6.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 7% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.

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Product Demand & Outstanding Inventory

Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ 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 208, which is 39 days above its five-year average, suggesting that the company’s inventory has grown to higher levels than we’ve seen in the past.

Key Takeaways from Impinj’s Q1 Results

We liked that Impinj beat analysts’ revenue expectations this quarter. We were also glad its revenue and EBITDA guidance for next quarter both trumped Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 22.3% to $146.55 immediately after reporting.

So should you invest in Impinj right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).