SolarEdge Reports Mixed Q1 Results, Stock Drops Nearly 7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SEDG?
Source: seekingalpha
- Performance Overview: SolarEdge's Q1 results revealed a 41.5% year-over-year revenue increase to $310.5 million, yet a non-GAAP EPS of -$0.43 missed estimates, highlighting challenges during the company's turnaround phase.
- Stock Volatility: The stock fell nearly 7% to $41.63, with an 8.73% decline over the past month, significantly underperforming the S&P 500's 11.19% gain, indicating market concerns about its future performance.
- Strategic Shift: SolarEdge is pivoting towards commercial, industrial, and integrated energy solutions, launching a new commercial storage system for Europe and Asia, but continues to face demand and margin pressures that impact overall profitability.
- Future Outlook: The company expects Q2 revenue between $325 million and $355 million, below the consensus of $340.29 million, with a non-GAAP gross margin guidance of 23%-27%, reflecting uncertainty in future growth prospects.
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Analyst Views on SEDG
Wall Street analysts forecast SEDG stock price to fall
18 Analyst Rating
1 Buy
12 Hold
5 Sell
Hold
Current: 38.610
Low
6.90
Averages
32.56
High
44.00
Current: 38.610
Low
6.90
Averages
32.56
High
44.00
About SEDG
SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company's products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company's power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company's solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SolarEdge Reports Q1 2026 Earnings with Revenue Growth
- Revenue Growth: SolarEdge reported Q1 2026 revenues of $310.5 million, reflecting a 46% year-over-year increase despite a 7.4% sequential decline, indicating the company's sustained growth potential in a competitive solar market.
- Improved Net Loss: The company posted a GAAP net loss of $57.4 million, or $0.95 per share, which is an improvement from the $132.1 million loss in Q4 2025, suggesting progress in cost control and operational efficiency.
- Margin Expansion: Achieving its sixth consecutive quarter of margin expansion, SolarEdge's non-GAAP gross margins reached 23.5%, and although operating expenses rose slightly to $123.3 million, management noted that excluding a one-time expense, the underlying operating loss remained flat, indicating potential improvements in profitability.
- Cash Flow and Outlook: The company generated $20.7 million in free cash flow and ended the quarter with a net cash and investment portfolio of $246.2 million, with expectations for Q2 revenues to rise between $325 million and $355 million, reflecting management's optimism about returning to profitability.
See More
SolarEdge (SEDG) Q1 2026 Earnings Transcript
See More
SolarEdge Technologies Q1 2026 Earnings Call Insights
- Profitability Transition: CEO Yehoshua Nir stated that SolarEdge is shifting from defense to offense, with expectations to approach breakeven operating profit in Q2, marking an important milestone in the company's transformation towards profitability.
- Market Demand Dynamics: Despite challenges in the U.S. residential market due to tax policy changes, Nir believes the company is well-positioned to benefit from a market rebound, particularly in the commercial and industrial sectors where products comply with domestic content and FEOC standards, resulting in market share gains.
- European Market Recovery: Q1 revenue in Europe reached its highest point since Q4 2023, driven by stronger battery demand, with all planned Q2 Nexis production fully booked by European customers, indicating a rising demand in the region.
- Financial Outlook and Risks: CFO Alperovitz reported Q1 non-GAAP revenue of $310 million, down 7% quarter-over-quarter, and guided Q2 revenues between $325 million and $355 million; while facing customer credit risks and currency pressures, the company is actively pursuing approximately $55 million in tariff refunds.
See More
Significant Stock Price Movements for Multiple Companies
- Arm Holdings Surge: Ahead of its earnings report, Arm Holdings saw a nearly 13% jump on Nasdaq, with UBS analyst raising its 12-month price target from $175 to $245, indicating strong market optimism for its growth potential.
- Healthpeak Properties Strong Performance: The healthcare REIT soared 18% after first-quarter funds from operations and revenue exceeded Wall Street expectations, raising its second-quarter FFO guidance to $1.71 to $1.75, reflecting robust business momentum.
- CDW Stock Decline: CDW shares dropped 19% after reporting disappointing operating income in Q1, with adjusted EPS of $2.28 matching consensus, yet the company reaffirmed its 2026 outlook, raising concerns about future performance.
- Aurora Innovation Partnership: Aurora Innovation's stock rose 9% following a deal to provide driverless technology to Berkshire Hathaway's McLane, which is expected to enhance its competitive edge in the long-haul trucking market.
See More
SolarEdge Reports Mixed Q1 Results, Stock Drops Nearly 7%
- Performance Overview: SolarEdge's Q1 results revealed a 41.5% year-over-year revenue increase to $310.5 million, yet a non-GAAP EPS of -$0.43 missed estimates, highlighting challenges during the company's turnaround phase.
- Stock Volatility: The stock fell nearly 7% to $41.63, with an 8.73% decline over the past month, significantly underperforming the S&P 500's 11.19% gain, indicating market concerns about its future performance.
- Strategic Shift: SolarEdge is pivoting towards commercial, industrial, and integrated energy solutions, launching a new commercial storage system for Europe and Asia, but continues to face demand and margin pressures that impact overall profitability.
- Future Outlook: The company expects Q2 revenue between $325 million and $355 million, below the consensus of $340.29 million, with a non-GAAP gross margin guidance of 23%-27%, reflecting uncertainty in future growth prospects.
See More
Significant Stock Movements for AMD and Others
- AMD Strong Guidance: AMD shares surged 20% after issuing a second-quarter revenue forecast of $11.2 billion, exceeding the analyst estimate of $10.52 billion, with first-quarter results also surpassing expectations, indicating robust performance in the semiconductor market.
- Super Micro Earnings Beat: Super Micro's stock jumped nearly 15% as fourth-quarter profit expectations range from 65 to 79 cents per share, significantly above Wall Street's call for 55 cents, with third-quarter adjusted earnings of 84 cents per share showcasing its competitiveness in the server market.
- CVS Health Performance Boost: CVS Health shares gained 4% after reporting first-quarter adjusted earnings of $2.57 per share and revenue of $100.43 billion, both exceeding analyst expectations, while the company raised its full-year earnings outlook, reflecting strong performance in the pharmacy benefits sector.
- Lucid Group Worsening Losses: Lucid Group shares fell 3% as the company reported a first-quarter loss of $3.46 per share, significantly worse than the expected loss of $2.64, with revenue of $282.5 million missing the $440.4 million target, highlighting challenges in the electric vehicle market.
See More
SolarEdge Reports Q1 2026 Earnings with Revenue Growth
- Revenue Growth: SolarEdge reported Q1 2026 revenues of $310.5 million, reflecting a 46% year-over-year increase despite a 7.4% sequential decline, indicating the company's sustained growth potential in a competitive solar market.
- Improved Net Loss: The company posted a GAAP net loss of $57.4 million, or $0.95 per share, which is an improvement from the $132.1 million loss in Q4 2025, suggesting progress in cost control and operational efficiency.
- Margin Expansion: Achieving its sixth consecutive quarter of margin expansion, SolarEdge's non-GAAP gross margins reached 23.5%, and although operating expenses rose slightly to $123.3 million, management noted that excluding a one-time expense, the underlying operating loss remained flat, indicating potential improvements in profitability.
- Cash Flow and Outlook: The company generated $20.7 million in free cash flow and ended the quarter with a net cash and investment portfolio of $246.2 million, with expectations for Q2 revenues to rise between $325 million and $355 million, reflecting management's optimism about returning to profitability.
See More
SolarEdge (SEDG) Q1 2026 Earnings Transcript
See More
SolarEdge Technologies Q1 2026 Earnings Call Insights
- Profitability Transition: CEO Yehoshua Nir stated that SolarEdge is shifting from defense to offense, with expectations to approach breakeven operating profit in Q2, marking an important milestone in the company's transformation towards profitability.
- Market Demand Dynamics: Despite challenges in the U.S. residential market due to tax policy changes, Nir believes the company is well-positioned to benefit from a market rebound, particularly in the commercial and industrial sectors where products comply with domestic content and FEOC standards, resulting in market share gains.
- European Market Recovery: Q1 revenue in Europe reached its highest point since Q4 2023, driven by stronger battery demand, with all planned Q2 Nexis production fully booked by European customers, indicating a rising demand in the region.
- Financial Outlook and Risks: CFO Alperovitz reported Q1 non-GAAP revenue of $310 million, down 7% quarter-over-quarter, and guided Q2 revenues between $325 million and $355 million; while facing customer credit risks and currency pressures, the company is actively pursuing approximately $55 million in tariff refunds.
See More
Significant Stock Price Movements for Multiple Companies
- Arm Holdings Surge: Ahead of its earnings report, Arm Holdings saw a nearly 13% jump on Nasdaq, with UBS analyst raising its 12-month price target from $175 to $245, indicating strong market optimism for its growth potential.
- Healthpeak Properties Strong Performance: The healthcare REIT soared 18% after first-quarter funds from operations and revenue exceeded Wall Street expectations, raising its second-quarter FFO guidance to $1.71 to $1.75, reflecting robust business momentum.
- CDW Stock Decline: CDW shares dropped 19% after reporting disappointing operating income in Q1, with adjusted EPS of $2.28 matching consensus, yet the company reaffirmed its 2026 outlook, raising concerns about future performance.
- Aurora Innovation Partnership: Aurora Innovation's stock rose 9% following a deal to provide driverless technology to Berkshire Hathaway's McLane, which is expected to enhance its competitive edge in the long-haul trucking market.
See More
SolarEdge Reports Mixed Q1 Results, Stock Drops Nearly 7%
- Performance Overview: SolarEdge's Q1 results revealed a 41.5% year-over-year revenue increase to $310.5 million, yet a non-GAAP EPS of -$0.43 missed estimates, highlighting challenges during the company's turnaround phase.
- Stock Volatility: The stock fell nearly 7% to $41.63, with an 8.73% decline over the past month, significantly underperforming the S&P 500's 11.19% gain, indicating market concerns about its future performance.
- Strategic Shift: SolarEdge is pivoting towards commercial, industrial, and integrated energy solutions, launching a new commercial storage system for Europe and Asia, but continues to face demand and margin pressures that impact overall profitability.
- Future Outlook: The company expects Q2 revenue between $325 million and $355 million, below the consensus of $340.29 million, with a non-GAAP gross margin guidance of 23%-27%, reflecting uncertainty in future growth prospects.
See More
Significant Stock Movements for AMD and Others
- AMD Strong Guidance: AMD shares surged 20% after issuing a second-quarter revenue forecast of $11.2 billion, exceeding the analyst estimate of $10.52 billion, with first-quarter results also surpassing expectations, indicating robust performance in the semiconductor market.
- Super Micro Earnings Beat: Super Micro's stock jumped nearly 15% as fourth-quarter profit expectations range from 65 to 79 cents per share, significantly above Wall Street's call for 55 cents, with third-quarter adjusted earnings of 84 cents per share showcasing its competitiveness in the server market.
- CVS Health Performance Boost: CVS Health shares gained 4% after reporting first-quarter adjusted earnings of $2.57 per share and revenue of $100.43 billion, both exceeding analyst expectations, while the company raised its full-year earnings outlook, reflecting strong performance in the pharmacy benefits sector.
- Lucid Group Worsening Losses: Lucid Group shares fell 3% as the company reported a first-quarter loss of $3.46 per share, significantly worse than the expected loss of $2.64, with revenue of $282.5 million missing the $440.4 million target, highlighting challenges in the electric vehicle market.
See More
