Solaredge Technologies, Inc. (SEDG) · Nov 4, 2026 · Earnings
Beat — Non-GAAP EPS $0.29 vs ~$0.04 consensus
SolarEdge earnings beat on adjusted EPS, but Q4 guidance cuts revenue and margins sharply as near-term solar demand weakens.
SolarEdge is in the middle of a turnaround: after returning to non-GAAP operating profitability in Q2, it is trying to scale the Nexis residential platform, storage, and its emerging solid-state-transformer opportunity for AI data centers. That recovery story was already partly established before this filing.
The quarter beat on underlying profitability, but not on revenue. Non-GAAP diluted EPS was $0.29 versus published consensus of roughly $0.04, while revenue of $326.1 million was slightly below the roughly $326.8 million consensus and landed near the midpoint of the company’s prior guide.
| Q3 2026 | Q3 2025 | Consensus / prior comparison | |
|---|---|---|---|
| Revenue (Financial Highlights) | $326.1M (-4.1%) | $340.2M | ~$326.8M consensus |
| Non-GAAP gross margin (Financial Highlights) | 34.7% | 18.8% | Q2: 28.6% |
| Non-GAAP diluted EPS (Financial Highlights) | $0.29 | $(0.31) | ~$0.04 consensus |
| Adjusted EBITDA (Financial Highlights) | $31.8M | $(14.1M) | Q2: $18.3M |
| Q4 revenue guidance (Guidance Metric) | $245M–$275M | — | — |
| Q4 non-GAAP gross margin guidance (Guidance Metric) | 17%–21% | — | — |
The forward message is materially worse than the quarter. Q4 revenue guidance of $245 million to $275 million implies a midpoint roughly 20% below Q3, while projected non-GAAP gross margin of 17% to 21% would be well below Q3’s 34.7%. Management explicitly cited reduced revenue expectations and cost actions, so this is not merely conservative wording.
Cash generation keeps the turnaround from looking broken, but does not offset the demand reset. The company produced $7.8 million of non-GAAP free cash flow in Q3 and held $555.1 million of cash and equivalents at September 30, while total current liabilities were $867.8 million (Cash Flow statement; Balance Sheet). That provides operating room, but the filing shows the recovery is still dependent on cost control and a later rebound in solar and storage demand rather than sustained top-line momentum.
Bottom line: SolarEdge delivered a genuine earnings beat and much healthier margins, but the sharp Q4 revenue and margin outlook signals that demand is deteriorating faster than the current turnaround can absorb. The quarter was better than feared; the business outlook is weaker than the quarter suggests.
Q4 report and Nexis/storage demand update
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