SolarEdge Technologies (NASDAQ:SEDG) Releases Earnings Results, Beats Estimates By $0.07 EPS

SolarEdge Technologies (NASDAQ:SEDG) posted its earnings results on Wednesday. The semiconductor company reported $0.05 earnings per share for the quarter, beating the consensus estimate of ($0.02) by $0.07, FiscalAI reports. SolarEdge Technologies had a negative net margin of 28.56% and a negative return on equity of 38.66%. The company had revenue of $345.50 million during the quarter, compared to analysts’ expectations of $341.15 million. During the same period last year, the company posted ($0.81) earnings per share. SolarEdge Technologies’s quarterly revenue was up 19.6% on a year-over-year basis.

Here are the key takeaways from SolarEdge Technologies’ conference call:

• SolarEdge returned to profitability in Q2: revenue rose 20% year over year to $346 million, non-GAAP gross margin expanded to 28.6%, and the company reported non-GAAP operating income for the first time in nearly three years.
• Management expects Q3 revenue of $310 million-$340 million, with approximately $15 million of sequential decline in Europe from seasonality and continued softness in U.S. residential demand; it does not expect the usual U.S. third-quarter rebound.
• SolarEdge reported strong strategic-market momentum, including more than 50% share of recent U.S. C&I rooftop installations, European revenue more than doubling year over year, and over $20 million of Q2 revenue from retrofit upselling.
• The company is scaling its Nexis PV-and-storage platform, with more than $60 million of European shipments in Q2 and a U.S. volume rollout beginning in Q3; management also highlighted growing storage demand and financing-platform approvals.
• SolarEdge’s AI-factory power-conversion opportunity advanced from development to customer demonstrations, validating 99% efficiency and medium-voltage AC-to-DC conversion; the company targets lab completion by year-end, pilot installations in 2027, and volume shipments in 2028.

SolarEdge Technologies Trading Down 29.8%

Shares of NASDAQ SEDG traded down $14.54 during midday trading on Wednesday, hitting $34.22. The company’s stock had a trading volume of 15,503,639 shares, compared to its average volume of 3,477,133. The business’s 50 day moving average is $55.66 and its two-hundred day moving average is $46.76. SolarEdge Technologies has a 12-month low of $23.01 and a 12-month high of $81.25. The company has a current ratio of 2.02, a quick ratio of 1.36 and a debt-to-equity ratio of 0.85. The firm has a market cap of $2.08 billion, a P/E ratio of -5.58 and a beta of 1.49.

Trending Headlines about SolarEdge Technologies

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

• Positive Sentiment: SolarEdge reported second-quarter revenue of approximately $345.5 million, up 19.6% year over year and ahead of the roughly $341 million consensus estimate. Adjusted earnings of $0.05 per share also exceeded expectations, reflecting stronger European demand, higher battery sales and improving margins. SolarEdge Technologies’ Q2 Earnings Top Estimates, Revenues Rise Y/Y
• Positive Sentiment: The company’s return to adjusted operating profitability and continued battery and storage growth provide evidence that its turnaround and cost-control efforts are beginning to gain traction. SolarEdge forecasts weaker Q3 as US residential market remains challenging
• Neutral Sentiment: SolarEdge’s Nexis home energy system is now integrated with ConnectDER’s IslandDER meter collar, supporting whole-home backup installations and potentially improving the company’s residential product offering. ConnectDER’s IslandDER Meter Collar Powers Whole-Home Backup With New SolarEdge Nexis Home Energy System
• Negative Sentiment: SolarEdge forecast third-quarter 2026 revenue of $310 million to $340 million, with a midpoint of $325 million—about 12% below analysts’ expectations near $368 million to $372 million. The guidance suggests that near-term demand remains under pressure. SolarEdge forecasts weaker Q3 as US residential market remains challenging
• Negative Sentiment: Management cited ongoing weakness in the U.S. residential solar market, where high interest rates and uncertain customer demand continue to delay installations. The disappointing outlook overshadowed the quarterly earnings beat and raised concerns that the turnaround remains incomplete. Why SolarEdge Stock Crashed After Earnings
• Negative Sentiment: Despite the improvement from last year, SolarEdge remains unprofitable on a GAAP basis, with a negative net margin and negative return on equity. The weak forecast also pressured broader solar stocks as investors reassessed sector demand.

Analysts Set New Price Targets

A number of research firms recently commented on SEDG. Deutsche Bank Aktiengesellschaft decreased their target price on SolarEdge Technologies from $42.00 to $39.00 and set a “hold” rating on the stock in a research report on Thursday, May 7th. TD Cowen reduced their price target on shares of SolarEdge Technologies from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, July 20th. Barclays increased their price objective on shares of SolarEdge Technologies from $41.00 to $53.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Royal Bank Of Canada decreased their target price on shares of SolarEdge Technologies from $32.00 to $30.00 and set a “sector perform” rating on the stock in a research report on Thursday, May 7th. Finally, Weiss Ratings raised SolarEdge Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, twelve have given a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $38.93.

Insiders Place Their Bets

In other news, Chairman More Avery sold 2,566 shares of SolarEdge Technologies stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $38.76, for a total transaction of $99,458.16. Following the completion of the sale, the chairman directly owned 295,379 shares in the company, valued at approximately $11,448,890.04. This trade represents a 0.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.04% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SolarEdge Technologies

Several large investors have recently added to or reduced their stakes in the stock. State of Wyoming bought a new stake in shares of SolarEdge Technologies during the fourth quarter valued at approximately $27,000. Kestra Advisory Services LLC purchased a new stake in shares of SolarEdge Technologies in the 4th quarter worth $31,000. Altshuler Shaham Ltd bought a new position in shares of SolarEdge Technologies during the 4th quarter worth $36,000. Empowered Funds LLC bought a new stake in shares of SolarEdge Technologies in the fourth quarter valued at about $44,000. Finally, Canada Pension Plan Investment Board purchased a new stake in SolarEdge Technologies in the second quarter worth about $35,000. 95.10% of the stock is owned by hedge funds and other institutional investors.

SolarEdge Technologies Company Profile

SolarEdge Technologies (NASDAQ: SEDG) is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company’s core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge’s technology enables real-time performance monitoring and rapid fault detection to enhance system reliability.

In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools.