SolarEdge Q2 revenue rises on strong European and U.S. C&I demand

SolarEdge Technologies

05/08/2026 12:03

Overview
Smart energy tech firm's Q2 revenue rose 20% yr/yr
Adjusted net income and adjusted operating profit for Q2 both beat analyst expectations
Company saw strong demand in Europe and U.S. C&I, offsetting U.S. residential weakness

Outlook
Solaredge sees Q3 2026 revenue between $310 mln and $340 mln
Company expects Q3 2026 non-GAAP gross margin of 22% to 26%
Solaredge projects Q3 2026 non-GAAP operating expenses of $86 mln to $91 mln

Result Drivers
EUROPEAN AND U.S. C&I DEMAND - Co said strong demand in Europe and U.S. commercial and industrial segments offset softness in U.S. residential
GROSS MARGIN EXPANSION - Q2 gross margin rose, helped by $13.3 mln benefit from IEEPA tariff matters
LOWER OPERATING EXPENSES - Co reported reduced operating expenses yr/yr, contributing to improved profitability

Company press release: ID:nBw7G0Nzka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$346.20 mln
 
Q2 Adjusted Net Income
Beat
$3.60 mln
-$237,230 (13 Analysts)
Q2 Net Loss
 
$30.80 mln
 
Q2 Gross Margin
 
27.50%
 
Q2 Adjusted Operating Profit
Beat
$10.20 mln
-$3.53 mln (14 Analysts)
Q2 Adjusted Gross Margin
 
28.60%
 
Q2 Operating Profit
 
-$16 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 21 "hold" and 6 "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 SolarEdge Technologies, Inc. is $39.00, about 20% below its August 4 closing price of $48.76
The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 73 three months ago

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Aug 4 - Tigo Energy Q2 revenue misses estimates on US market weakness
Aug 4 - US weighs polysilicon price floor, tariffs to counter China in solar and chips

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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.)