SolarEdge Technologies (NASDAQ:SEDG) Announces Earnings Results

SolarEdge Technologies (NASDAQ:SEDG) released its quarterly earnings results on Wednesday. The semiconductor company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.04 by $0.25, FiscalAI reports. The firm had revenue of $325.40 million during 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 business’s revenue for the quarter was down 4.2% compared to the same quarter last year. During the same quarter in the prior year, the firm 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

Shares of NASDAQ:SEDG traded down $2.86 during midday trading on Wednesday, reaching $30.02. 8,188,188 shares of the company’s stock traded hands, compared to its average volume of 3,359,582. 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 P/E ratio of -6.67 and a beta of 1.31. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.38 and a current ratio of 2.03. The company has a fifty day simple moving average of $32.91 and a two-hundred day simple moving average of $42.20.

More SolarEdge Technologies News

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

• Positive Sentiment: SolarEdge reported third-quarter adjusted earnings of $0.29 per share, ahead of analyst estimates, and said profitability was in line with expectations. Zacks also cited improving gross margins and positive cash flow. SolarEdge Q3 earnings top estimates, revenues fall year over year
• Neutral Sentiment: Democrats’ control of both chambers of Congress lifted sentiment across much of the solar sector, but SolarEdge did not share in the broader rally, highlighting company-specific concerns. Solar stocks react to election results
• Negative Sentiment: Revenue was about $325 million, slightly below analyst expectations and down 4.2% year over year. More importantly, management flagged persistent near-term uncertainty and reduced fourth-quarter revenue expectations, reinforcing concerns about demand. SolarEdge announces third-quarter 2026 financial results

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on SEDG shares. BMO Capital Markets cut their target price on SolarEdge Technologies from $31.00 to $28.00 and set an “underperform” rating on the stock in a research report on Wednesday, October 21st. Royal Bank Of Canada raised their target price on shares of SolarEdge Technologies from $24.00 to $30.00 and gave the stock a “sector perform” rating in a research report on Friday, September 11th. Weiss Ratings raised shares of SolarEdge Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 2nd. Morgan Stanley dropped their price objective on SolarEdge Technologies from $35.00 to $33.00 and set an “equal weight” rating on the stock in a research note on Friday, September 11th. Finally, Wall Street Zen upgraded shares of SolarEdge Technologies from a “sell” rating to a “hold” rating in a report on Sunday. Two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, SolarEdge Technologies has an average rating of “Reduce” and a consensus target price of $38.53.

About SolarEdge Technologies

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.