Enphase Energy reported third quarter 2026 results that missed analyst estimates on both the top and bottom lines as soft residential solar demand in the U.S. and seasonal weakness in Europe weighed on performance. Global sell-through growth of approximately 1% fell significantly short of the company’s 10% expectation, leading to a downbeat fourth-quarter outlook forecasting a 10% sequential decline in sell-through.
Key Highlights
- Revenue reached $293.3 million, missing the $303.85 million estimate, with U.S. revenue increasing only 3% due to persistent market headwinds.
- Non-GAAP gross margin contracted to 45.0%, down from 46.8% in the prior quarter and missing the 47.5% estimate, primarily driven by product mix and reciprocal tariffs.
- Battery storage shipments increased to 129.9 MWh compared to 113.8 MWh in the second quarter, representing a bright spot in diversified energy management.
- The company demonstrated a major technical milestone for its IQ Solid-State Transformer (SST) technology, maintaining stable 800 VDC output for AI data center applications.