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

SolarEdge Technologies (NASDAQ:SEDG) released its quarterly earnings results on Wednesday. The semiconductor company reported ($0.14) EPS for the quarter, topping analysts’ consensus estimates of ($0.19) by $0.05, FiscalAI reports. The business had revenue of $333.80 million during the quarter, compared to analysts’ expectations of $330.33 million. SolarEdge Technologies had a negative net margin of 34.23% and a negative return on equity of 45.54%. The business’s quarterly revenue was up 70.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($3.52) EPS.

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 0.4%

Shares of SEDG opened at $34.96 on Friday. The stock has a market capitalization of $2.09 billion, a P/E ratio of -5.08 and a beta of 1.66. The company has a quick ratio of 1.60, a current ratio of 2.17 and a debt-to-equity ratio of 0.82. The firm has a fifty day simple moving average of $32.59 and a two-hundred day simple moving average of $33.66. SolarEdge Technologies has a twelve month low of $11.00 and a twelve month high of $48.60.

Trending Headlines about SolarEdge Technologies

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: Q4 beat and strong revenue growth — EPS of ($0.14) topped estimates and revenue of $333.8M (+70.9% YoY) beat consensus; shipments and cash flow showed improvement, supplying a near‑term fundamental lift. Business Wire: Q4 & Full‑Year 2025 Results
• Positive Sentiment: Management outlined 2026 margin‑expansion targets, global rollout of the Nexis platform and advancement of an AI data‑center power strategy — these are clear growth / margin levers investors can watch for execution. Seeking Alpha: 2026 Targets & Nexis Rollout
• Positive Sentiment: Bullish analyst action — TD Cowen raised its price target to $43 and kept a buy rating, signaling upside from some sell‑side desks. Benzinga: TD Cowen Raise
• Positive Sentiment: Unusually high call‑option activity (14,496 calls, ~25% above average) suggests short‑term bullish positioning from traders. AmericanBankingNews: Unusually High Options Volume
• Neutral Sentiment: Q1 revenue guidance of $290M–$320M is roughly in line with consensus (~$292M), meaning the quarter didn’t materially surprise the market on forward revenue. Zacks: Q4 Results & Guidance
• Neutral Sentiment: Goldman Sachs bumped its target to $36 but kept a neutral rating, reflecting modest upside and balanced near‑term expectations. TickerReport/Benzinga: Goldman Sachs Raise
• Neutral Sentiment: Market commentary is assessing valuation after the Q4 recovery and upbeat guidance — investors will weigh growth vs. remaining execution risk. Yahoo Finance: Valuation After Q4
• Negative Sentiment: Some profit‑taking / “priced‑in” reaction — reports note a ~5.5% intraday dip after earnings, suggesting investors had already priced expectations and trimmed positions. InsiderMonkey: Dips as Earnings Priced In
• Negative Sentiment: Royal Bank of Canada cut its target to $32 (sector perform), adding downward analyst pressure and signaling more cautious near‑term sentiment. Benzinga: RBC Lowers Target
• Negative Sentiment: Underlying profitability remains a concern — negative net margin and a negative EPS outlook for the year mean the stock still carries execution and margin risk until improvements are sustained. MarketBeat: Earnings Summary

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Raymond James Financial started coverage on shares of SolarEdge Technologies in a research report on Tuesday, January 13th. They issued a “market perform” rating for the company. The Goldman Sachs Group lifted their price target on SolarEdge Technologies from $32.00 to $36.00 and gave the stock a “neutral” rating in a research note on Thursday. Weiss Ratings reiterated a “sell (d-)” rating on shares of SolarEdge Technologies in a report on Monday, December 29th. Jefferies Financial Group reiterated an “underperform” rating on shares of SolarEdge Technologies in a research report on Wednesday, January 21st. Finally, Barclays raised their price objective on SolarEdge Technologies from $36.00 to $39.00 and gave the company an “equal weight” rating in a report on Thursday, January 15th. One analyst has rated the stock with a Buy rating, sixteen have assigned a Hold rating and seven have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $26.57.

Hedge Funds Weigh In On SolarEdge Technologies

Several hedge funds and other institutional investors have recently modified their holdings of the company. Invesco Ltd. grew its stake in shares of SolarEdge Technologies by 28.6% in the fourth quarter. Invesco Ltd. now owns 2,169,822 shares of the semiconductor company’s stock worth $62,599,000 after purchasing an additional 483,052 shares during the last quarter. Mackenzie Financial Corp lifted its holdings in SolarEdge Technologies by 28.9% in the 4th quarter. Mackenzie Financial Corp now owns 7,055 shares of the semiconductor company’s stock worth $204,000 after buying an additional 1,583 shares during the period. Empowered Funds LLC purchased a new stake in SolarEdge Technologies in the 4th quarter worth approximately $44,000. Polymer Capital Management US LLC bought a new stake in shares of SolarEdge Technologies in the 4th quarter worth approximately $397,000. Finally, Moore Capital Management LP purchased a new position in shares of SolarEdge Technologies during the fourth quarter valued at approximately $4,516,000. 95.10% of the stock is owned by institutional investors.

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.