PomegraEnphase Stock Falls 16% After Earnings Miss
Why did Enphase stock fall 16%?
Enphase Energy (ENPH) stock fell 16% to $24.99 on Wednesday after an earnings miss, as weak fourth-quarter guidance pointed to a slump in U.S. home solar demand.
Key numbers
| Q3 revenue | $293.3M-28.5% YoY |
|---|---|
| Adjusted EPS | $0.41vs $0.51 expected |
| Q4 revenue guidance | $225M–$255Mvs ~$298.6M expected |
| U.S. sell-through | -35%YoY; +5% vs Q2 |
| Non-GAAP gross margin | 45.0%vs 46.8% in Q2 |
| Share price (close) | $24.99-16.0% on Oct 28 |
What happened
Enphase Energy (ENPH) stock fell 16% to $24.99 on Wednesday after an earnings miss, as weak fourth-quarter guidance pointed to a slump in U.S. home solar demand. Sales were $293.3 million, about 29% below the $410.4 million of a year earlier, and profit per share of $0.41 missed the $0.51 analysts expected. The company also forecast fourth-quarter sales of $225 million to $255 million, well under the roughly $299 million analysts expected. Before trading opened, shares were down as much as 20%.
Why it matters
Enphase Energy makes the devices that turn solar panel power into electricity a home can use, so its sales are a good gauge of the home solar market. Its results show U.S. demand is weak after a federal tax credit for homeowners who buy solar systems ended in 2025 and borrowing costs stayed high. The company said installer sales to U.S. homeowners fell 35% from a year ago.
Who this affects
- MarketbearishMedium impact
- Solar stocks fell together, hurting investors across the group.
- CompanybearishHigh impact
- Shareholders saw shares drop 16%; outlook points to lower sales.
- CompetitorsmixedMedium impact
- SolarEdge and Sunrun also fell; First Solar roughly flat.
- IndustrybearishMedium impact
- U.S. home solar demand stays weak; bad for installers.
Enphase vs SolarEdge, Sunrun, First Solar
How we got here
Federal Section 25D tax credit for homeowner-owned solar systems expires.
Enphase reports Q3 revenue of $293.3M and guides Q4 to $225M–$255M.
Shares close down 16% at $24.99; premarket drops were reported between 16% and 20%.
What to watch
- Whether fourth-quarter revenue lands within Enphase's $225M–$255M guided range.Q4 2026
- Analyst price target changes after JPMorgan cut its target to $29 from $35.2026-10-29
- Pilot launches of Enphase's IQ SST data center product, planned to begin in 2027.2027
Educational content only. Not investment advice.
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