SolarEdge Technologies (NASDAQ:SEDG) Posts Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• SolarEdge earned $0.29 per share, beating the $0.04 consensus estimate by $0.25; revenue of $325.4 million was slightly below expectations and fell 4.2% year over year.
• The outlook remains challenging: management forecast fourth-quarter revenue of $245 million–$275 million and expects revenue to decline by more than 10% sequentially in Q1 2027, citing weak markets and channel inventory discipline.
• SolarEdge generated $7.8 million in free cash flow, its fifth consecutive positive quarter, and expects positive free cash flow for full-year 2026.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) issued its earnings results on Wednesday. The semiconductor company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.25, FiscalAI reports. The business had revenue of $325.40 million for the quarter, compared to analyst estimates of $326.78 million. SolarEdge Technologies had a negative net margin of 20.29% and a negative return on equity of 29.17%. The firm's revenue was down 4.2% on a year-over-year basis. During the same period in the previous year, the business earned ($0.31) EPS.

Here are the key takeaways from SolarEdge Technologies' conference call:

• SolarEdge expects fourth-quarter revenue of $245 million–$275 million, citing weak U.S. residential and German markets, channel inventory discipline, and the exit from less-profitable regions. Management also expects revenue to decline by more than 10% sequentially in Q1 2027.
• Q3 non-GAAP revenue was $325.4 million, while non-GAAP gross margin was 34.7% and non-GAAP net income was $21.1 million; however, results included a $36 million IEEPA-related benefit. Excluding that benefit, management estimated non-GAAP gross margin at approximately 23.6%.
• SolarEdge generated $7.8 million of free cash flow in Q3, its fifth consecutive quarter of positive free cash flow, and expects positive free cash flow for full-year 2026. Management is targeting adjusted EBITDA break-even in 2027, assuming roughly flat revenue, and expects restructuring actions to deliver mid-single-digit millions in quarterly savings.
• The Nexis platform contributed more than $100 million in Q3 revenue, and storage was the company’s largest product category for the second consecutive quarter. Management cited growing storage attachment and retrofit demand, while noting that Nexis adoption is building in Europe and among U.S. TPO partners.
• SolarEdge reported continued technical progress on its solid-state transformer (SST) for data centers, including testing tied to 34.5-kilovolt equipment, and said efficiency has remained above 99% in demonstrations. The company remains on track for a lab system by year-end 2026, customer pilots in 2027, and volume shipments in 2028, though the opportunity is still under development.

SolarEdge Technologies Price Performance

SEDG stock traded down $2.81 during midday trading on Wednesday, reaching $30.07. 7,265,670 shares of the company's stock traded hands, compared to its average volume of 3,352,593. The company has a 50-day simple moving average of $32.91 and a two-hundred day simple moving average of $42.20. SolarEdge Technologies has a 1-year low of $28.11 and a 1-year high of $81.25. The company has a market cap of $1.85 billion, a price-to-earnings ratio of -6.68 and a beta of 1.31. The company has a quick ratio of 1.38, a current ratio of 2.03 and a debt-to-equity ratio of 0.85.

Trending Headlines about SolarEdge Technologies

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: SolarEdge reported third-quarter earnings of $0.29 per share, above analysts’ estimates, and returned to profitability as gross margins improved. The company said revenue of about $326 million was in line with its guidance, and cash flow remained positive. Zacks Q3 earnings and outlook
• Neutral Sentiment: Democrats’ election wins lifted hopes for clean-energy policy support and helped drive gains across much of the solar sector, but SolarEdge moved against the industry trend. Solar stocks and election reaction
• Negative Sentiment: Revenue was down 4.2% year over year, and management warned that near-term uncertainty and lower expected fourth-quarter revenue point to persistent demand challenges. That outlook likely overshadowed the earnings beat and helps explain why SEDG lagged the sector rally. SolarEdge third-quarter results

Analysts Set New Price Targets

A number of research analysts have commented on SEDG shares. Barclays cut their price target on shares of SolarEdge Technologies from $37.00 to $36.00 and set an "equal weight" rating for the company in a research note on Wednesday, October 7th. BMO Capital Markets lowered their price objective on SolarEdge Technologies from $31.00 to $28.00 and set an "underperform" rating on the stock in a research note on Wednesday, October 21st. Susquehanna lowered their price objective on SolarEdge Technologies from $38.00 to $32.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 14th. Mizuho increased their target price on SolarEdge Technologies from $38.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, September 11th. Finally, Royal Bank Of Canada increased their target price on SolarEdge Technologies from $24.00 to $30.00 and gave the stock a "sector perform" rating in a report on Friday, September 11th. Two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $38.53.

SolarEdge Technologies Company Profile

SolarEdge Technologies, Inc NASDAQ: SEDG develops technologies for solar energy generation, storage and management. Its core products include power optimizers, solar inverters and monitoring systems designed to improve the performance, visibility and safety of photovoltaic installations.

The company also offers complementary smart-energy solutions, including battery storage, electric-vehicle charging equipment, energy-management software and related products for residential, commercial and industrial customers.

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