SolarEdge Technologies (2ED) Q3 2026 Earnings Report
DE:2ED Q3 2026 EPS Results
- Actual EPS
- EUR 0.26
- Consensus EPS
- EUR 0.03
- Beat/Miss
- Beat by +EUR 0.22
- One Year Ago EPS
- -EUR 0.28
DE:2ED Q3 2026 Revenue Results
- Actual Revenue
- EUR 289.73M
- Expected Revenue
- EUR 290.36M
- Beat/Miss
- Missed by -EUR 623.76K
- YoY Revenue Growth
- -4.15%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
SolarEdge Technologies's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call presented a mixed outlook. SolarEdge reported meaningful year-over-year improvements in gross margin, operating performance, adjusted EBITDA, and free cash flow, while Nexis, storage, and the SST data center opportunity showed continued progress. However, the near-term outlook is pressured by weak U.S. and German markets, regulatory uncertainty, channel inventory management, market exits, lower Q4 revenue guidance, expected 10%+ sequential revenue decline in Q1 2027, and Q4 gross margin pressure. The positive operational progress and growth initiatives were balanced by significant near-term challenges.
SolarEdge expects Q4 revenue of $245 million-$275 million, including a $35 million impact from proactive channel inventory management, approximately $10 million from de-emphasizing less profitable markets, and another $5 million from the euro exchange rate; non-GAAP gross margin is expected to be within the range of 17%-21% and non-GAAP operating expenses within the range of $87 million-$91 million, with approximately $4 million remaining to be returned during the fourth quarter from a potential IEEPA refund. Full-year capital expenditure is expected in the range of approximately $45 million-$55 million, with positive free cash flow for the full-year; Q1 2027 revenue is expected to decline 10%+ sequentially, while beyond the first quarter the company expects a flat year-over-year growth profile and an adjusted EBITDA break-even profile for 2027. The company expects net savings in the mid-single-digit million each quarter, with the full expense benefit realized in the first quarter of 2027, and remains on track for a working SST system in its lab by the end of 2026, pilot installations in 2027, and volume shipments in 2028.
- Q3 Revenue Met Guidance MidpointGAAP revenue was $326.1 million, down 5.8% quarter-over-quarter and 4.1% year-over-year. Non-GAAP revenue was $325.4 million, down 5.8% quarter-over-quarter and 4.2% year-over-year, in line with the midpoint of the $310 million-$340 million guidance range.
- Significant Gross Margin ImprovementGAAP gross margin increased to 33.2% from 27.5% in Q2 and 21.2% in Q3 of last year. Non-GAAP gross margin increased to 34.7% from 28.6% in Q2 and 18.8% in Q3 of last year. The results included approximately $36 million related to IEEPA tariff matters; excluding that item, non-GAAP gross margin was approximately 23.6%, near the midpoint of the previously guided 22%-26% range.
- Return to Non-GAAP ProfitabilityNon-GAAP operating income was $23.9 million, compared with $10.2 million in Q2 and a $23.8 million operating loss in Q3 of last year. Non-GAAP net income was $21.1 million, or $0.29 per diluted share, compared with $3.6 million in Q2 and a $18.3 million loss in Q3 of last year. Adjusted EBITDA was $31.8 million, compared with $18.3 million in Q2 and an adjusted EBITDA loss of $14.1 million in Q3 of last year.
- Fifth Consecutive Quarter of Positive Free Cash FlowThe company generated $20.4 million of operating cash flow and $7.8 million of free cash flow in Q3, compared with $3.1 million in Q2 and $22.8 million in Q3 of last year. Year-to-date free cash flow was $31.7 million, marking the fifth consecutive quarter of positive free cash flow, and the company continued to expect positive free cash flow for the full year.
- Nexis Platform ScalingNexis systems delivered strong sequential growth and contributed over $100 million in revenue in Q3. Three-phase Nexis continued to gain adoption in European markets, with higher average system sizes in Germany's 10kW to 30 kW segment and higher storage attach rates. In the U.S., Nexis was added to the approved vendor list of every leading TPO and prepaid lease company the company works with.
- Storage Became the Largest Product CategoryStorage revenue grew again in Q3, driven by higher attach rates on new systems and rising retrofit volumes. Storage was the company's largest product category by revenue for the second consecutive quarter.
- Growing Revenue from Installed-Base UpsellsSolarEdge recognized more than $30 million of revenue from battery upselling to its installed base in the Netherlands and Germany, up from more than $20 million in Q2. The company continues to leverage an installed base of over 1 million homes in those markets.
- Strong U.S. Commercial and Industrial PositionThe company continued to build on its higher than 50% market share in the U.S. rooftop commercial and industrial market, with a healthy pipeline. Management said the C&I outlook remains solid, supported by rising electricity prices, data center-driven demand, and the expectation that storage attach rates will increase over time.
- Visibility from Safe Harbor AgreementsSafe Harbor agreements in residential and commercial markets amount to $1.7 billion and may reach $3.3 billion when required optimizers are added. Management said these agreements provide visibility and support confidence in future demand.
- Progress on Data Center SST OpportunitySolarEdge continued advancing its DC-native grid-to-rack powertrain from medium voltage to 800 VDC. The three-phase conversion stage was operating under load in the lab, system-level validation of the full power path was underway, the SST cell completed high-voltage insulation testing at the level used for 34.5 kV class equipment, and its transformer completed partial discharge testing well above its operating voltage.
- SST Efficiency and Commercialization MilestonesThe SST cell continued demonstrating efficiency above 99% in all demonstrations. The company issued an 800 VDC protection and grounding white paper with NVIDIA, extended its collaboration with Infineon on solid-state circuit protection, showcased the SST cell on NVIDIA's AI Factory MGX Ecosystem wall, and remained on track for a working lab system by the end of 2026, pilot installations in 2027, and volume shipments in 2028.
- Continued Investment in Growth InitiativesCapital expenditures were $12.6 million in Q3, including continued investment in the SST program, manufacturing capacity, and a new headquarters in Israel that consolidates several locations and expands advanced R&D facilities. The company also accelerated investment in the data center opportunity and expects to begin rolling out single-phase Nexis in Europe in the first quarter of 2027.
- Expected Restructuring Savings and 2027 EBITDA TargetThe restructuring and cost-optimization actions are expected to produce net savings in the mid-single-digit million each quarter, including approximately $3 million from COGS and $2 million from OpEx. The full expense benefit is expected in Q1 2027, and management expects a flat year-over-year revenue profile and an adjusted EBITDA break-even profile for 2027.
DE:2ED Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | -0.10- | -0.12 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 0.030.26 | -0.28 | 193.55% (+0.53) | |
| Aug 05, 2026 | 2026 (Q2) | -0.020.05 | -0.72 | 107.41% (+0.77) | |
| May 06, 2026 | 2026 (Q1) | -0.24-0.38 | -1.01 | 62.28% (+0.63) | |
| Feb 18, 2026 | 2025 (Q4) | -0.23-0.12 | -3.13 | 96.02% (+3.00) | |
| Nov 05, 2025 | 2025 (Q3) | -0.35-0.28 | -13.62 | 97.98% (+13.35) | |
| Aug 07, 2025 | 2025 (Q2) | -0.78-0.72 | -1.59 | 54.75% (+0.87) | |
| May 06, 2025 | 2025 (Q1) | -1.03-1.01 | -1.69 | 40.00% (+0.68) | |
| Feb 19, 2025 | 2024 (Q4) | -1.34-3.13 | -0.82 | -282.61% (-2.31) | |
| Nov 06, 2024 | 2024 (Q3) | -1.46-13.62 | -0.49 | -2687.27% (-13.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
