SolarEdge Technologies (NASDAQ:SEDG) Releases Earnings Results

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

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 Trading Down 14.9%

Shares of NASDAQ SEDG traded down $4.47 during midday trading on Thursday, hitting $25.55. The company’s stock had a trading volume of 3,939,995 shares, compared to its average volume of 3,361,729. The company has a current ratio of 2.03, a quick ratio of 1.38 and a debt-to-equity ratio of 0.85. The business’s 50 day moving average is $32.91 and its two-hundred day moving average is $42.18. SolarEdge Technologies has a 12-month low of $25.25 and a 12-month high of $81.25. The firm has a market cap of $1.57 billion, a P/E ratio of -5.68 and a beta of 1.31.

Analysts Set New Price Targets

Several equities analysts have commented on SEDG shares. Weiss Ratings upgraded shares of SolarEdge Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, October 2nd. Royal Bank Of Canada increased their price target on shares of SolarEdge Technologies from $24.00 to $30.00 and gave the company a “sector perform” rating in a report on Friday, September 11th. TD Cowen lowered their price objective on SolarEdge Technologies from $85.00 to $75.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Morgan Stanley dropped their target price on SolarEdge Technologies from $35.00 to $33.00 and set an “equal weight” rating for the company in a report on Friday, September 11th. Finally, Barclays cut their target price on SolarEdge Technologies from $37.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Wednesday, October 7th. Two research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, SolarEdge Technologies presently has an average rating of “Reduce” and a consensus price target of $38.47.

Key Stories Impacting 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 analyst estimates, and said revenue of about $326 million was in line with its guidance. Analysts also cited improved gross margins and positive cash flow. SolarEdge Q3 results
• Negative Sentiment: The company’s fourth-quarter outlook points to reduced revenue expectations amid persistent demand challenges. Third-quarter revenue was down 4.2% year over year and slightly below consensus, tempering the earnings beat. Q3 earnings and outlook
• Negative Sentiment: Susquehanna lowered its price target from $32 to $31 while maintaining a neutral rating, signaling limited analyst conviction despite the target remaining above the recent share price. Susquehanna ratings
• Negative Sentiment: Solar stocks broadly rallied after Democrats won control of Congress, but SolarEdge bucked the sector move, suggesting company-specific concerns outweighed improved clean-energy sentiment. Solar stocks and election reaction

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.