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SolarEdge Technologies' Q3 Earnings Top Estimates, Revenues Fall Y/Y
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Key Takeaways
SolarEdge reported adjusted EPS of 29 cents, beating estimates and reversing a year-ago loss of 31 cents.
Adjusted gross margin rose to 34.7%, while adjusted operating income reached $23.9 million.
SEDG expects Q4 revenues to decline 20.3% sequentially, citing market uncertainty and softer demand.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2026 adjusted earnings of 29 cents per share, which surpassed the Zacks Consensus Estimate of 2 cents. The company had incurred an adjusted loss of 31 cents per share in the year-ago quarter.
SEDG’s Revenues
Revenues totaled $326.1 million, down 4.1% year over year, and missed the Zacks Consensus Estimate of $329 million by 0.9%. Lower inverter and optimizer revenues weighed on the company’s performance. However, improved profitability and stronger battery sales supported results. The company recognized 388 megawatt-hours (MWh) of battery shipments as revenues during the quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge reported a GAAP gross margin of 33.2%, expanding from 21.2% in the year-ago quarter and 27.5% in the preceding quarter.
Adjusted gross margin improved to 34.7% from 18.8% a year earlier and 28.6% in the second quarter. The reported gross margin figures included a $36 million benefit related to International Emergency Economic Powers Act tariff matters.
Adjusted operating expenses increased to $88.8 million from $87.7 million in the year-ago quarter. Expenses remained largely unchanged from $88.5 million in the previous quarter.
SolarEdge's Operating Performance Improves
SEDG reported a GAAP operating loss of $1.9 million, narrowing from $35.2 million in the year-ago quarter and $16 million in the preceding quarter.
Adjusted operating income reached $23.9 million compared to an operating loss of $23.8 million in the prior-year period. The figure also improved from an operating income of $10.2 million in the second quarter.
Adjusted EBITDA reached $31.8 million compared to a loss of $14.1 million in the prior-year period.
SEDG's Cash Flow Remains Positive
SolarEdge generated $20.4 million in operating cash flow during the third quarter compared with $11.4 million in the preceding quarter.
Free cash flow totaled $7.8 million compared with $3.1 million in the second quarter and $22.8 million a year earlier. This marked the company's fifth consecutive quarter of positive free cash flow.
As of Sept. 30, 2026, SolarEdge's cash and investments, net of debt, totaled $260.9 million, compared with $264.6 million as of June 30, 2026.
The company held $555.1 million in cash and cash equivalents at the quarter's end compared with $455.1 million as of Dec. 31, 2025.
SolarEdge Provides Soft Q4 Outlook Amid Demand Concerns
For the fourth quarter of 2026, SolarEdge expects revenues to be between $245 million and $275 million. The midpoint of $260 million implies a sequential decline of approximately 20.3%.
Adjusted gross margin is projected to be between 17% and 21%, while adjusted operating expenses are anticipated to be between $87 million and $91 million. The guidance excludes potential fourth-quarter tariff refunds.
Management highlighted persistent near-term market uncertainty and weaker revenue expectations. Consequently, the company is undertaking cost-reduction measures to support profitability amid softer demand.
First Solar, Inc. (FSLR - Free Report) reported third-quarter 2026 earnings of $5.30 per share, which beat the Zacks Consensus Estimate of $4.64 by 14.2%. The bottom line increased 25% from $4.24 in the year-ago quarter.
FSLR’s net sales of $1.23 billion missed the consensus estimate of $1.313 billion by 6.2% and declined 23% year over year.
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.
ENPH’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.
An Upcoming Solar Release
Array Technologies (ARRY - Free Report) is slated to report third-quarter 2026 results on Nov. 5, after market close. The Zacks Consensus Estimate for third-quarter earnings is pegged at 10 cents per share, indicating a year-over-year decline of 66.7%.
The Zacks Consensus Estimate for ARRY’s third-quarter sales is pegged at $322.2 million, implying a year-over-year decline of 18.1%.
View the Zacks #1 Rank List
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SolarEdge Technologies' Q3 Earnings Top Estimates, Revenues Fall Y/Y
Key Takeaways
SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2026 adjusted earnings of 29 cents per share, which surpassed the Zacks Consensus Estimate of 2 cents. The company had incurred an adjusted loss of 31 cents per share in the year-ago quarter.
SEDG’s Revenues
Revenues totaled $326.1 million, down 4.1% year over year, and missed the Zacks Consensus Estimate of $329 million by 0.9%. Lower inverter and optimizer revenues weighed on the company’s performance. However, improved profitability and stronger battery sales supported results. The company recognized 388 megawatt-hours (MWh) of battery shipments as revenues during the quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote
SEDG's Gross Margin Expands, Operating Costs Rise
SolarEdge reported a GAAP gross margin of 33.2%, expanding from 21.2% in the year-ago quarter and 27.5% in the preceding quarter.
Adjusted gross margin improved to 34.7% from 18.8% a year earlier and 28.6% in the second quarter. The reported gross margin figures included a $36 million benefit related to International Emergency Economic Powers Act tariff matters.
Adjusted operating expenses increased to $88.8 million from $87.7 million in the year-ago quarter. Expenses remained largely unchanged from $88.5 million in the previous quarter.
SolarEdge's Operating Performance Improves
SEDG reported a GAAP operating loss of $1.9 million, narrowing from $35.2 million in the year-ago quarter and $16 million in the preceding quarter.
Adjusted operating income reached $23.9 million compared to an operating loss of $23.8 million in the prior-year period. The figure also improved from an operating income of $10.2 million in the second quarter.
Adjusted EBITDA reached $31.8 million compared to a loss of $14.1 million in the prior-year period.
SEDG's Cash Flow Remains Positive
SolarEdge generated $20.4 million in operating cash flow during the third quarter compared with $11.4 million in the preceding quarter.
Free cash flow totaled $7.8 million compared with $3.1 million in the second quarter and $22.8 million a year earlier. This marked the company's fifth consecutive quarter of positive free cash flow.
As of Sept. 30, 2026, SolarEdge's cash and investments, net of debt, totaled $260.9 million, compared with $264.6 million as of June 30, 2026.
The company held $555.1 million in cash and cash equivalents at the quarter's end compared with $455.1 million as of Dec. 31, 2025.
SolarEdge Provides Soft Q4 Outlook Amid Demand Concerns
For the fourth quarter of 2026, SolarEdge expects revenues to be between $245 million and $275 million. The midpoint of $260 million implies a sequential decline of approximately 20.3%.
Adjusted gross margin is projected to be between 17% and 21%, while adjusted operating expenses are anticipated to be between $87 million and $91 million. The guidance excludes potential fourth-quarter tariff refunds.
Management highlighted persistent near-term market uncertainty and weaker revenue expectations. Consequently, the company is undertaking cost-reduction measures to support profitability amid softer demand.
SEDG’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
First Solar, Inc. (FSLR - Free Report) reported third-quarter 2026 earnings of $5.30 per share, which beat the Zacks Consensus Estimate of $4.64 by 14.2%. The bottom line increased 25% from $4.24 in the year-ago quarter.
FSLR’s net sales of $1.23 billion missed the consensus estimate of $1.313 billion by 6.2% and declined 23% year over year.
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.
ENPH’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.
An Upcoming Solar Release
Array Technologies (ARRY - Free Report) is slated to report third-quarter 2026 results on Nov. 5, after market close. The Zacks Consensus Estimate for third-quarter earnings is pegged at 10 cents per share, indicating a year-over-year decline of 66.7%.
The Zacks Consensus Estimate for ARRY’s third-quarter sales is pegged at $322.2 million, implying a year-over-year decline of 18.1%.