Enphase Energy (NASDAQ:ENPH) Releases Earnings Results, Misses Expectations By $0.10 EPS

Enphase Energy (NASDAQ:ENPH) posted its earnings results on Tuesday. The semiconductor company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.10), FiscalAI reports. The business had revenue of $293.33 million during the quarter, compared to analysts’ expectations of $304.59 million. The company’s quarterly revenue was down 28.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.90 EPS.

Here are the key takeaways from Enphase Energy’s conference call:

• Near-term demand remains weak: Q3 U.S. residential sell-through fell 35% year over year amid high interest rates and the expiration of the 25D tax credit, while management expects global sell-through to decline about 10% sequentially in Q4.
• Q4 revenue is expected to fall to $225 million–$255 million, including $51.2 million of safe-harbor revenue, with non-GAAP gross margin projected at 40%–43% due to product mix, battery price reductions, tariffs, and higher freight costs.
• Enphase expects residential battery shipments to grow approximately 50% in 2027, supported by the compact, stackable IQ Battery G5, U.S. retrofit demand, Dutch storage adoption after net-metering ends, and expansion into Australia.
• New growth initiatives are progressing, including Propel prepaid leases, commercial solar and storage, and bidirectional EV charging; management expects commercial revenue to rise from about $30 million in 2026 to over $100 million in 2027, with EV charging contributing $15 million–$20 million.
• The IQ Solid-State Transformer has demonstrated 13.8 kV-to-800 VDC conversion, with 34.5 kV and megawatt-scale demonstrations planned; Enphase is targeting customer pilots in 2027 and believes the AI data-center opportunity could eventually exceed $1 billion in annual revenue, though significant compliance and execution work remains.

Enphase Energy Stock Performance

ENPH stock opened at $25.02 on Wednesday. The company has a market capitalization of $3.31 billion, a P/E ratio of 25.38 and a beta of 1.64. The company has a fifty day moving average price of $34.40 and a 200-day moving average price of $41.11. Enphase Energy has a 52-week low of $23.70 and a 52-week high of $73.74.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Roth Capital cut Enphase Energy from a “buy” rating to a “neutral” rating and set a $30.00 price target on the stock. in a research note on Wednesday. Citigroup dropped their price target on Enphase Energy from $40.00 to $37.00 and set a “neutral” rating for the company in a research note on Tuesday, September 29th. Mizuho set a $34.00 price objective on shares of Enphase Energy in a research note on Wednesday. Susquehanna reduced their target price on Enphase Energy from $35.00 to $26.00 and set a “neutral” rating on the stock in a report on Wednesday. Finally, Oppenheimer lowered Enphase Energy from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $38.57.

Enphase Energy News Summary

Here are the key news stories impacting Enphase Energy this week:

• Positive Sentiment: Enphase outlined a plan for approximately 50% battery growth in 2027, which could support longer-term diversification beyond its residential microinverter business. Enphase outlines 50% 2027 battery growth plan
• Positive Sentiment: The company reported progress on its IQ Solid-State Transformer technology, successfully demonstrating conversion from 13.8 kV AC to 800 VDC. The technology is aimed in part at emerging AI data-center power applications, though commercialization may take time. Enphase IQ Solid-State Transformer demonstration
• Neutral Sentiment: Analyst views have diverged. Goldman Sachs maintained a $47 buy target before the earnings release, while Bernstein reduced its target to $40 with a market-perform rating. These targets remain above the current share price but reflect substantial uncertainty.
• Negative Sentiment: Third-quarter adjusted EPS was $0.41, below the $0.51 consensus estimate, while revenue of $293.3 million missed the $304.6 million forecast and declined 28.5% year over year. EPS also fell from $0.90 in the comparable period. Enphase Energy third-quarter results
• Negative Sentiment: Fourth-quarter revenue guidance of $225 million to $255 million implies another sequential decline and came in below Wall Street expectations. Management also said global sell-through growth was only about 1% sequentially, well below its earlier 10% expectation.
• Negative Sentiment: Management cited elevated interest rates and the expiration of renewable-energy tax credits as major pressures on U.S. residential demand. Analysts responded with downgrades from Roth Capital, Oppenheimer and Morgan Stanley; Morgan Stanley cut its target to $16 and assigned an underweight rating. Why Enphase Energy stock is sinking

Insiders Place Their Bets

In other Enphase Energy news, Director Richard Mora sold 1,500 shares of Enphase Energy stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $40.36, for a total transaction of $60,540.00. Following the transaction, the director directly owned 10,422 shares of the company’s stock, valued at approximately $420,631.92. The trade was a 12.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 2.90% of the stock is owned by insiders.

Enphase Energy Company Profile

Enphase Energy, Inc develops and manufactures technology for residential and commercial solar energy systems. Its products include solar microinverters, which convert electricity generated by individual solar panels into usable power, along with integrated energy management technologies designed to improve system performance, monitoring and reliability.

The company also offers battery storage systems, electric vehicle chargers and software that enables customers, installers and utilities to monitor and manage distributed energy resources.