SolarEdge Technologies (NASDAQ:SEDG) Releases Earnings Results, Beats Expectations By $0.05 EPS

SolarEdge Technologies (NASDAQ:SEDG) posted its quarterly earnings results on Wednesday. The semiconductor company reported ($0.14) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.19) by $0.05, FiscalAI reports. SolarEdge Technologies had a negative return on equity of 77.21% and a negative net margin of 53.65%.The business had revenue of $333.80 million during the quarter, compared to analyst estimates of $330.33 million. During the same period in the prior year, the business earned ($3.52) earnings per share. The business’s revenue was up 70.9% compared to the same quarter last year.

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

• SolarEdge delivered a financial turnaround in 2025 with Q4 non-GAAP revenue of $334M (up 70% YoY), Q4 gross margin of 23.3%, $43M free cash flow in Q4 and $77M free cash flow for the year versus negative $421M in 2024.
• Q1 2026 guidance of $290M–$320M revenue and 20%–24% non‑GAAP gross margin implies continued year‑over‑year growth and margin expansion, and management reiterated a target of reaching EBIT profitability later in 2026 if trends hold.
• Product and go‑to‑market moves include the upcoming launch of the Nexis platform (March 19 in Germany), a global Single‑SKU rollout and expanded U.S. manufacturing, with management expecting high‑volume Nexis shipments in H2 2026 and transition largely complete by early 2027.
• Management is pursuing a large AI data‑center opportunity with a solid‑state transformer (aiming to convert 34.5 kV to 800 V DC at >99% efficiency) and has engaged potential partners and POCs, but does not expect material revenue before 2027 and industry ramp in 2028, so timing and scale remain uncertain.
• Near‑term headwinds and one‑offs include a ~$60M one‑time non‑cash finance expense related to closing the Kokam battery unit, a GAAP net loss (~$8M) on the e‑Mobility sale, currency (strong Israeli shekel) and tariff pressures, and planned higher CapEx for SST development that could pressure margins and cash flow in the short term.

SolarEdge Technologies Trading Down 4.5%

Shares of SolarEdge Technologies stock opened at $35.45 on Wednesday. The company has a debt-to-equity ratio of 0.78, a current ratio of 2.28 and a quick ratio of 1.60. The company has a market capitalization of $2.12 billion, a P/E ratio of -3.71 and a beta of 1.66. SolarEdge Technologies has a 1 year low of $11.00 and a 1 year high of $48.60. The business has a 50 day moving average price of $32.46 and a 200 day moving average price of $33.64.

Hedge Funds Weigh In On SolarEdge Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Tidal Investments LLC lifted its position in SolarEdge Technologies by 1.2% during the second quarter. Tidal Investments LLC now owns 42,411 shares of the semiconductor company’s stock valued at $865,000 after buying an additional 484 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in SolarEdge Technologies by 28.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,481 shares of the semiconductor company’s stock worth $51,000 after purchasing an additional 553 shares during the last quarter. The Manufacturers Life Insurance Company raised its holdings in SolarEdge Technologies by 4.6% in the second quarter. The Manufacturers Life Insurance Company now owns 16,023 shares of the semiconductor company’s stock valued at $327,000 after acquiring an additional 700 shares in the last quarter. State of Wyoming acquired a new stake in shares of SolarEdge Technologies in the 4th quarter valued at about $27,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of SolarEdge Technologies in the 4th quarter valued at approximately $31,000. Institutional investors and hedge funds own 95.10% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on SEDG. Wells Fargo & Company reduced their price objective on shares of SolarEdge Technologies from $42.00 to $33.00 and set an “equal weight” rating on the stock in a report on Friday, December 19th. UBS Group upped their target price on shares of SolarEdge Technologies from $30.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, November 14th. Jefferies Financial Group reissued an “underperform” rating on shares of SolarEdge Technologies in a research report on Wednesday, January 21st. Royal Bank Of Canada raised their price objective on SolarEdge Technologies from $25.00 to $34.00 and gave the stock a “sector perform” rating in a report on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SolarEdge Technologies in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating, sixteen have given a Hold rating and eight have assigned a Sell rating to the stock. According to MarketBeat, SolarEdge Technologies presently has an average rating of “Reduce” and an average price target of $25.45.

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.