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Enphase Energy Q3 Earnings Lag Estimates, Revenues Decline Y/Y
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Key Takeaways
ENPH's Q3 adjusted EPS fell 54.4% to 41 cents, while revenues declined 28.5% to $293.3 million.
ENPH's adjusted operating income plunged 56.6%, while gross margin contracted 420 basis points to 45%.
ENPH guides Q4 revenues to $225-$255 million; its IQ SST technology pipeline expands to more than 50 partners.
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2026 adjusted earnings of 41 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 12.8%. The bottom line declined 54.4% from 90 cents in the year-ago quarter.
Including one-time adjustments, the company posted GAAP earnings of 17 cents per share, down from 50 cents recorded in the year-ago quarter.
ENPH’s Revenues
Enphase Energy's third-quarter revenues of $293.3 million lagged the Zacks Consensus Estimate of $304 million by 3.4%. The top line also dropped 28.5% from the prior-year quarter's reported figure of $410.4 million.
The year-over-year decline reflected weakness in residential solar demand.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
The company's adjusted gross margin contracted 420 basis points year over year to 45%.
Adjusted operating expenses declined 0.1% year over year to $78.4 million.
Adjusted operating income totaled $53.6 million, falling 56.6% from $123.4 million in the year-ago quarter.
ENPH's Microinverter and Battery Shipments
ENPH’s shipments amounted to approximately 1.42 million microinverters and 129.9 megawatt-hours (MWh) of Enphase IQ Batteries.
More than 26,000 installers worldwide were certified to install IQ Batteries at quarter-end, up from more than 25,000 in the preceding quarter.
Enphase Energy's Technology Expansion
Enphase Energy achieved a development milestone for its IQ Solid-State Transformer (“SST”), demonstrating 13.8-kilovolt alternating-current to 800-volt direct-current conversion. The technology is designed to improve power conversion efficiency for artificial intelligence data centers.
The company more than doubled its IQ SST customer and partner pipeline to more than 50 during the quarter. It is working with a leading hyperscaler and a global AI computing company on technical requirements.
ENPH expects to validate operation at 34.5 kilovolts and demonstrate a megawatt-scale system by year-end 2026. Customer pilots are planned for 2027, with commercial shipments expected to begin in 2028.
Financial Details of ENPH
Enphase Energy had $380.4 million in cash and cash equivalents as of Sept. 30, 2026 compared with $474.3 million as of Dec. 31, 2025.
The net cash flow from operating activities was $143.3 million during the first nine months of 2026 compared with $89 million in the prior-year period.
ENPH's Q4 2026 Guidance
For the fourth quarter of 2026, ENPH expects revenues in the range of $225-$255 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $302.7 million, which is higher than the company’s guided range.
Enphase Energy expects to ship IQ Batteries in the range of 100-120 MWh during the fourth quarter.
Adjusted operating expenses are expected between $76 million and $80 million. This excludes approximately $43 million estimated for stock-based compensation expenses and acquisition-related amortization.
The adjusted gross margin is anticipated in the range of 40-43%, excluding stock-based compensation expenses and acquisition-related amortization.
ENPH’s Zacks Rank
Enphase Energy currently carries a Zacks Rank #4 (Sell).
First Solar, Inc. (FSLR - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $4.64 per share, which suggests a year-over-year rise of 9.4%.
The consensus estimate for sales stands at $1.31 billion, which indicates a fall of 17.7%.
SolarEdge Technologies (SEDG - Free Report) is slated to report third-quarter 2026 results on Nov. 4, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at 2 cents per share, which calls for a year-over-year surge of 106.5%.
The consensus estimate for sales is pegged at $329.1 million, which implies a plunge of 3.3%.
Sunrun Inc. (RUN - Free Report) is slated to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at 26 cents per share, which suggests a massive year-over-year rise of 333.3%.
The consensus estimate for sales is pegged at $804.1 million, which calls for a jump of 11%.
View the Zacks #1 Rank List
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Enphase Energy Q3 Earnings Lag Estimates, Revenues Decline Y/Y
Key Takeaways
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2026 adjusted earnings of 41 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 12.8%. The bottom line declined 54.4% from 90 cents in the year-ago quarter.
Including one-time adjustments, the company posted GAAP earnings of 17 cents per share, down from 50 cents recorded in the year-ago quarter.
ENPH’s Revenues
Enphase Energy's third-quarter revenues of $293.3 million lagged the Zacks Consensus Estimate of $304 million by 3.4%. The top line also dropped 28.5% from the prior-year quarter's reported figure of $410.4 million.
The year-over-year decline reflected weakness in residential solar demand.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote
Enphase Energy’s Operational Update
The company's adjusted gross margin contracted 420 basis points year over year to 45%.
Adjusted operating expenses declined 0.1% year over year to $78.4 million.
Adjusted operating income totaled $53.6 million, falling 56.6% from $123.4 million in the year-ago quarter.
ENPH's Microinverter and Battery Shipments
ENPH’s shipments amounted to approximately 1.42 million microinverters and 129.9 megawatt-hours (MWh) of Enphase IQ Batteries.
More than 26,000 installers worldwide were certified to install IQ Batteries at quarter-end, up from more than 25,000 in the preceding quarter.
Enphase Energy's Technology Expansion
Enphase Energy achieved a development milestone for its IQ Solid-State Transformer (“SST”), demonstrating 13.8-kilovolt alternating-current to 800-volt direct-current conversion. The technology is designed to improve power conversion efficiency for artificial intelligence data centers.
The company more than doubled its IQ SST customer and partner pipeline to more than 50 during the quarter. It is working with a leading hyperscaler and a global AI computing company on technical requirements.
ENPH expects to validate operation at 34.5 kilovolts and demonstrate a megawatt-scale system by year-end 2026. Customer pilots are planned for 2027, with commercial shipments expected to begin in 2028.
Financial Details of ENPH
Enphase Energy had $380.4 million in cash and cash equivalents as of Sept. 30, 2026 compared with $474.3 million as of Dec. 31, 2025.
The net cash flow from operating activities was $143.3 million during the first nine months of 2026 compared with $89 million in the prior-year period.
ENPH's Q4 2026 Guidance
For the fourth quarter of 2026, ENPH expects revenues in the range of $225-$255 million. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $302.7 million, which is higher than the company’s guided range.
Enphase Energy expects to ship IQ Batteries in the range of 100-120 MWh during the fourth quarter.
Adjusted operating expenses are expected between $76 million and $80 million. This excludes approximately $43 million estimated for stock-based compensation expenses and acquisition-related amortization.
The adjusted gross margin is anticipated in the range of 40-43%, excluding stock-based compensation expenses and acquisition-related amortization.
ENPH’s Zacks Rank
Enphase Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
First Solar, Inc. (FSLR - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, after market close. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $4.64 per share, which suggests a year-over-year rise of 9.4%.
The consensus estimate for sales stands at $1.31 billion, which indicates a fall of 17.7%.
SolarEdge Technologies (SEDG - Free Report) is slated to report third-quarter 2026 results on Nov. 4, before market open. The Zacks Consensus Estimate for SEDG’s earnings is pegged at 2 cents per share, which calls for a year-over-year surge of 106.5%.
The consensus estimate for sales is pegged at $329.1 million, which implies a plunge of 3.3%.
Sunrun Inc. (RUN - Free Report) is slated to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus Estimate for RUN’s earnings is pegged at 26 cents per share, which suggests a massive year-over-year rise of 333.3%.
The consensus estimate for sales is pegged at $804.1 million, which calls for a jump of 11%.