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Enphase Energy Stock Plummets on Weak Q3 Results, Dismal Outlook
Enphase Energy (NASDAQ:ENPH) shares plunged 15.8% in pre-market trading after the company released third-quarter financial results that missed Wall Street estimates on both the top and bottom lines and provided a deeply disappointing fourth-quarter forecast.
Double Miss and Weak Guidance
For the third quarter of 2026, Enphase reported adjusted earnings per share of $0.41, falling short of the consensus analyst estimate of $0.51. The company's revenue of $293.3 million also trailed the forecast of $303.85 million and represented a sharp decline from the same period a year earlier.
The solar technology firm's outlook signaled further deterioration. Enphase guided for fourth-quarter revenue in a range of $225 million to $255 million. The midpoint of this range, $240 million, is substantially below the analyst consensus of approximately $300.5 million, implying a continued sequential decline in product sell-through.
Persistent Headwinds in Key Markets
On the company's earnings call, CEO Badri Kothandaraman attributed the weak performance to persistent challenges in the U.S. residential solar market, citing "higher interest rates and the expiration of the Section 25D federal tax credit" as significant headwinds.
AdDemand weakness was not confined to the U.S. The company reported that European revenue fell roughly 11% sequentially, with notable softness in the French market. This points to a broader slowdown in demand across key geographies.
Analyst Cuts and Market Reaction
The combination of the earnings miss and bleak guidance prompted a negative reaction from investors and analysts. The pre-market selloff pushed the stock toward its 52-week low of $25.77.
Following the report, JPMorgan analyst Mark Strouse lowered his firm’s price target on the stock to $29 from $35, maintaining a Neutral rating. The analyst cited weakening macroeconomic conditions and the company's deliberate under-shipments to help distributors reduce inventory levels. Separately, GLJ Research reiterated its Sell rating on the shares.
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