SolarEdge Technologies (NASDAQ:SEDG) Issues Quarterly Earnings Results

SolarEdge Technologies (NASDAQ:SEDG) posted its quarterly earnings data on Wednesday. The semiconductor company reported $0.29 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $325.40 million during the quarter, compared to analysts’ expectations of $326.78 million. During the same quarter last year, the company posted ($0.31) EPS. The company’s quarterly revenue was down 4.2% compared to the same quarter last year.

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 8.5%

SEDG stock traded down $2.81 during midday trading on Wednesday, reaching $30.07. The stock had a trading volume of 7,265,670 shares, compared to its average volume of 3,352,593. The firm has a market cap of $1.85 billion, a price-to-earnings ratio of -6.68 and a beta of 1.31. SolarEdge Technologies has a twelve month low of $28.11 and a twelve month high of $81.25. The company has a quick ratio of 1.38, a current ratio of 2.03 and a debt-to-equity ratio of 0.85. The business has a fifty day simple moving average of $32.91 and a two-hundred day simple moving average of $42.20.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SEDG. The Goldman Sachs Group reduced their target price on shares of SolarEdge Technologies from $34.00 to $30.00 and set a “sell” rating on the stock in a research report on Thursday, August 6th. Morgan Stanley lowered their price target on shares of SolarEdge Technologies from $35.00 to $33.00 and set an “equal weight” rating for the company in a report on Friday, September 11th. TD Cowen dropped their price objective on shares of SolarEdge Technologies from $85.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, July 20th. UBS Group raised SolarEdge Technologies from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $36.00 to $42.00 in a report on Wednesday, August 26th. Finally, Citigroup upped their price objective on SolarEdge Technologies from $25.00 to $30.00 and gave the stock a “sell” rating in a report on Monday, September 21st. 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 company’s stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $38.53.

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 analysts’ estimates, and returned to profitability as gross margins improved. The company said revenue of about $326 million was in line with its guidance, and cash flow remained positive. Zacks Q3 earnings and outlook
• Neutral Sentiment: Democrats’ election wins lifted hopes for clean-energy policy support and helped drive gains across much of the solar sector, but SolarEdge moved against the industry trend. Solar stocks and election reaction
• Negative Sentiment: Revenue was down 4.2% year over year, and management warned that near-term uncertainty and lower expected fourth-quarter revenue point to persistent demand challenges. That outlook likely overshadowed the earnings beat and helps explain why SEDG lagged the sector rally. SolarEdge third-quarter results

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.