A month has gone by since the last earnings report for Enphase Energy (ENPH Quick QuoteENPH - Free Report) . Shares have added about 9.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Enphase Energy due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Enphase Energy, Inc. before we dive into how investors and analysts have reacted as of late.

Enphase Energy Q2 Earnings Match Estimates, Revenues Decline Y/Y

Enphase Energy, Inc. reported second-quarter 2026 adjusted earnings of 46 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 33.3% from 69 cents in the prior-year quarter.

Including one-time adjustments, the company posted GAAP earnings of 27 cents per share, down from 28 cents recorded in the year-ago quarter.

ENPH’s Revenues

Enphase Energy’s second-quarter revenues of $291.9 million missed the Zacks Consensus Estimate of $295 million by 1%. The top line also decreased 19.6% from the prior-year quarter’s reported figure of $363.2 million.

The year-over-year plunge was mainly due to weaker sales in the United States.

Enphase Energy’s Operational Update

The company’s adjusted gross margin decreased 180 basis points year over year to 46.8%.

Adjusted operating expenses rose 2.6% year over year to $79.8 million. 

The adjusted operating income totaled $56.7 million, down 42.5% from the year-ago quarter.

Enphase Energy’s Shipments Gain Momentum

ENPH’s shipments amounted to approximately 1.59 million microinverters and 113.8 megawatt-hours (MWh) of Enphase IQ Batteries.

More than 25,000 installers worldwide were certified to install IQ Batteries at quarter-end, up from more than 24,000 in the preceding quarter.

Financial Details of ENPH

Enphase Energy had $529.3 million in cash and cash equivalents as of June 30, 2026 compared with $474.3 million as of Dec. 31, 2025.

The net cash flow from operating activities was $143.2 million during the first six months of 2026 compared with $75 million in the prior-year period.

Q3 2026 Guidance by Enphase Energy

For the third quarter of 2026, ENPH expects revenues in the range of $290-$320 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $315.9 million, which is at the higher end of the company’s guided range.

Enphase Energy expects to ship IQ batteries in the range of 130-150 MWh in the third quarter.

Adjusted operating expenses are expected between $76 million and $80 million. This excludes approximately $44 million estimated for stock-based compensation expenses, acquisition-related costs and amortization, as well as restructuring and asset impairment charges.

The adjusted gross margin is anticipated in the range of 44-47%, excluding stock-based compensation expenses and acquisition-related amortization.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -13.14% due to these changes.

VGM Scores

At this time, Enphase Energy has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Enphase Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.