Enphase Energy (ENPH) Q3 2026 Earnings
GAAP and non-GAAP diluted EPS reduced by $0.15 and $0.14, respectively, due to impairment in investments. Q3 also included $120 thousand of tariff refunds recognized as a reduction to cost of revenues.
How Did ENPH Stock React to Q3 2026 Earnings?
Did ENPH Beat Earnings? Q3 2026 Results
No. Enphase Energy reported Q3 2026 earnings of $0.41 a share on Oct 27, 2026, missing the $0.50 consensus estimate by 18.7%. Revenue was $293.3M against a $305.1M estimate.
Enphase Energy delivered a disappointing third quarter, missing on both top and bottom lines as persistent weakness in its core residential solar markets weighed heavily on results. Revenue of $293.33 million fell 3.87% short of the $305.15 million consensus and slid 28.5% from the year-ago quarter, while adjusted non-GAAP diluted EPS of $0.41 came in 18.72% below the $0.50 consensus estimate; both GAAP and non-GAAP figures were also reduced by roughly $0.15 and $0.14 per share, respectively, from investment impairments. The primary culprit was a severe shortfall in sell-through momentum: global sell-through grew just 1% sequentially against management's 10% target, with U.S. volumes down 35% year-over-year and European sell-through retreating 12% on summer seasonality and softness in France. Non-GAAP gross margin compressed to 45.0% from 46.8% in the prior quarter, partly due to a 1.3 percentage point tariff drag. Looking ahead, guidance is notably cautious, with Q4 revenue projected at $225.0 million to $255.0 million and sell-through expected to decline a further 10% sequentially, though management pointed to IQ Battery G5, EV chargers, and its emerging IQ Solid-State Transformer technology for AI data centers as longer-term growth levers.
- Safe harbor revenue of $85.0 million in Q3 contributed significantly to total revenue
- U.S. sell-through increased 5% sequentially but declined 35% year-over-year
- European sell-through declined 12% sequentially due to summer seasonality and weakness in France
- Product mix drove non-GAAP gross margin compression from 46.8% to 45.0%
- Reciprocal tariffs reduced gross margin by approximately 1.3 percentage points, improved from 2.0 points in Q2
- Global sell-through grew only 1% sequentially vs. 10% expectation
“We reported quarterly revenue of $293.3 million in the third quarter of 2026 and shipped approximately 1.42 million IQ® Microinverters, or 655.2 megawatts DC, and 129.9 megawatt hours (MWh) of IQ® Batteries.”
Enphase Energy CEO, on the earnings call
What Is Enphase Energy's Outlook?
For Q4 2026, Enphase guides revenue of $225.0 million to $255.0 million, including $51.2 million of safe harbor revenue and shipments of 100–120 MWh of IQ Batteries, with sell-through expected to decline 10% vs. Q3 2026. GAAP gross margin is expected at 38.0%–41.0% and non-GAAP gross margin at 40.0%–43.0%, both including approximately 2.0 percentage points of reciprocal tariff impact. GAAP operating expenses are guided at $119.0–$123.0 million; non-GAAP operating expenses at $76.0–$80.0 million. The company outlined five growth drivers heading into 2027: IQ Battery G5, the Propel prepaid lease program, commercial solar (IQ9 Commercial Microinverters and IQ Battery C80), EV chargers, and IQ SST for AI data centers. IQ SST customer pilots are targeted for 2027, with commercial shipments expected to begin in 2028.
ENPH YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $293.3M | $410.4M | −28.5% |
| Gross Profit | $127.1M | $196.2M | −35.2% |
| Operating Income | $6.5M | $66.2M | −90.2% |
| Net Income | $23.4M | $66.6M | −64.9% |
Figures from SEC filings and company reports. Not investment advice.