Enphase Energy Q3 results miss estimates on weak US, Europe demand
Overview
U.S. solar tech firm's Q3 revenue declined yr/yr and missed analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company cited soft US and European solar demand as factors impacting results
Outlook
Enphase sees Q4 2026 revenue between $225 mln and $255 mln
Company expects Q4 non-GAAP gross margin of 40% to 43%
Company says US residential solar market faces headwinds from higher rates and tax credit expiration
Result Drivers
SOFT US DEMAND - Co said US residential solar demand remained soft, limiting revenue growth
WEAK EUROPEAN MARKETS - Co said European revenue fell due to seasonality and continued weakness in certain solar markets
PRODUCT MIX AND TARIFFS - Co said lower gross margin was driven by product mix and reciprocal tariffs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $293.30 mln | $304.04 mln (21 Analysts) |
Q3 Adjusted EPS | Miss | $0.41 | $0.51 (20 Analysts) |
Q3 EPS | $0.17 | ||
Q3 Adjusted Net Income | Miss | $54 mln | $67.95 mln (16 Analysts) |
Q3 Net Income | $23.40 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 18 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the renewable energy equipment & services peer group is "buy."
Wall Street's median 12-month price target for Enphase Energy, Inc. is $41.00, about 35% above its October 26 closing price of $30.36
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 23 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)