Enphase Energy Q2 revenue slightly beats estimates, adjusted EPS in line

Overview

• Solar microinverter maker's Q2 revenue slightly beat analyst expectations, adjusted EPS met consensus

• Adjusted net income for Q2 missed analyst expectations

• Company reported U.S. revenue down 3% and Europe revenue up 35% yr/yr

Outlook

• Enphase Energy sees Q3 2026 revenue between $290 mln and $320 mln

• Company expects Q3 GAAP gross margin of 42% to 45%, including 2 percentage points tariff impact

• Enphase Energy expects Q3 non-GAAP operating expenses of $76 mln to $80 mln

Result Drivers

• SAFE HARBOR REVENUE - Q2 revenue included $84.3 mln from safe harbor shipments, up from $34.5 mln in Q1

• TARIFF REFUNDS - U.S. Customs tariff refunds increased GAAP gross profit by $45.4 mln, boosting GAAP gross margin by 15.6 percentage points

• EUROPEAN GROWTH, U.S. DECLINE - Revenue in the United States decreased approximately 3%, while revenue in Europe increased approximately 35%

Company press release: ID:nGNX8SlBRm

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 20 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment services peer group is "buy."

• Wall Street's median 12-month price target for Enphase Energy Inc is $48.00, about 26.3% above its July 27 closing price of $38.01

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 28 - SunPower Q2 revenue drops on delayed job completions

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• July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)