SolarEdge Technologies (NASDAQ:SEDG) Issues Quarterly Earnings Results, Beats Estimates By $0.25 EPS

SolarEdge Technologies (NASDAQ:SEDG) announced its earnings results 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 return on equity of 19.80% and a negative net margin of 17.34%. The company had revenue of $325.40 million for the quarter, compared to the consensus estimate of $326.78 million. During the same period last year, the business posted ($0.31) EPS. The company’s revenue 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 Price Performance

SEDG stock traded up $1.25 on Friday, reaching $27.45. 1,232,747 shares of the company’s stock were exchanged, compared to its average volume of 3,365,401. The stock has a fifty day moving average of $32.77 and a 200-day moving average of $42.14. SolarEdge Technologies has a twelve month low of $25.25 and a twelve month high of $81.25. The firm has a market cap of $1.69 billion, a PE ratio of -7.22 and a beta of 1.31. The company has a quick ratio of 1.38, a current ratio of 2.12 and a debt-to-equity ratio of 0.83.

Key SolarEdge Technologies News

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: SolarEdge reported Q3 2026 earnings of $0.29 per share, above the $0.04 consensus estimate. The results drew unusually high trading volume. Revenue was slightly below expectations at $325.4 million, however, and declined 4.2% year over year. Earnings results
• Neutral Sentiment: SolarEdge traded against a broader clean-energy rally following the U.S. elections, with coverage noting that other solar stocks gained while SEDG came under pressure. Solar-stock market reaction
• Negative Sentiment: Several firms reduced their price targets. Susquehanna lowered its target to $31 from $32 and kept a neutral rating; JPMorgan cut its target to $31 from $38 and maintained neutral. Goldman Sachs cut to $25 from $29 and Citi to $24 from $30, with both rating the stock sell. Susquehanna price-target update
• Negative Sentiment: A Seeking Alpha analysis says weak demand clouds SolarEdge’s recovery, reinforcing concerns that the earnings beat may not yet signal a sustained improvement. Weak-demand analysis

Analysts Set New Price Targets

A number of research firms recently weighed in on SEDG. 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. Barclays cut their price objective on shares of SolarEdge Technologies from $37.00 to $36.00 and set an “equal weight” rating for the company in a research report on Wednesday, October 7th. BMO Capital Markets reduced their target price on shares of SolarEdge Technologies from $31.00 to $28.00 and set an “underperform” rating for the company in a research note on Wednesday, October 21st. Mizuho lifted their target price on shares of SolarEdge Technologies from $38.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, September 11th. Finally, TD Cowen lowered their target price on shares of SolarEdge Technologies from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Monday, July 20th. Two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $37.27.

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.