SolarEdge, a small-cap solar system manufacturer, is bracing for a poor quarter. Its stock has plummeted.
Shares of a solar system manufacturer plummeted amid weak expectations / Photo: Facebook / SolaredgePV
Shares of SolarEdge, a provider of renewable energy solutions, plummeted 30% on August 5—to their lowest level since mid-March. The company expects a decline in revenue in the third quarter of 2026, according to its forecast.
Details
Shares of SolarEdge, which manufactures solar systems for homes and power plants for industrial use, fell 30% on the Nasdaq on August 5 to $33.9. This is the lowest level since mid-March.
The company expects its revenue for the third quarter to range from $310 million to $340 million. The upper end of this range corresponds to the figure for the same period in 2025, while the lower end implies a year-over-year decline in revenue of nearly 9%.
The figures reported by SolarEdge also fell short of Wall Street’s consensus estimate of $365 million, notes MarketWatch. The company’s outlook is primarily driven by a seasonal decline in SolarEdge’s sales in Europe and “soft” demand in the U.S., according to GuruFocus.
What Analysts Are Saying
Sales outlook was a disappointing aspect amid SolarEdge’s generally strong financial results for the second quarter of 2026, according to RBC Capital Markets analyst Chris Dendrinos.
On August 5, the company reported that its revenue for April–June rose by nearly 20% year-over-year to $346.2 million, while its net loss fell fourfold to $30 million. “For the first time since the second quarter of 2023, we have returned to non-GAAP (i.e., non-GAAP) operating profitability,” SolarEdge quotes its CEO, Shuki Nir, as saying. Operating profit for the reporting period was $10.2 million, compared with a loss of $24.8 million in the third quarter of 2025.
The residential segment was the main driver of growth in April–June, Nir said. He also noted strong demand for the company’s solutions in the European market and from industrial enterprises.
According to a MarketWatch article, SolarEdge sees the future of its business in a new transformer designed for data centers. A couple of weeks ago, the company demonstrated a working prototype to potential customers and their engineering teams, Nir said Wednesday during a conference call with analysts.
SolarEdge expects to have a fully functional prototype by the end of the year and to launch pilot programs for its use in data centers by next year. According to Nir, the new transformer could become a “significant” source of revenue for the company in 2028, MarketWatch reports.
Despite the company’s promises, Wall Street is not yet very optimistic about its prospects. SolarEdge’s stock has 19 “hold” ratings from analysts, seven “sell” ratings, and only one “buy” rating. The average target price is $39.7, which is 17% higher than the last closing price.
