SolarEdge guided Q3 revenue below analyst estimates amid soft US residential solar demand, overshadowing stronger-than-expected Q2 results.
SolarEdge Technologies (NASDAQ:SEDG) shares dropped 24% after the company forecast Q3 2026 revenue of $310 million to $340 million, below the $368 million to $372 million analysts expected. The midpoint of $325 million reflects persistent challenges in the US residential solar market.
The company reported Q2 revenue of $346.2 million, up 19.6% year-over-year and above the $342 million consensus. Adjusted earnings per share ranged from $0.05 to $0.06, outperforming expectations for break-even results. Non-GAAP gross margin expanded to 28.6% from 13.1% in the prior-year period.
SolarEdge posted non-GAAP operating income of $10.2 million, compared with a $48.3 million loss in Q2 2025, while non-GAAP net income reached $3.6 million versus a $47.7 million loss a year earlier. GAAP net loss narrowed to $30.8 million, or $0.50 per share, from $124.7 million, or $2.13 per share, in the prior-year quarter.