| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | — | 17.8x | Around median | |
Growth | 63 | 41.6% | 7.1% | Around median | |
Quality | 15 | -14.9% | 4.5% | Bottom tier | |
Safety | 42 | — | 2.6x | Around median | |
Capital Return | 92 | — | 2.12% | Top tier | |
Momentum | 33 | -1.5% | 2.9% | Bottom tier | |
Sentiment | 82 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
SolarEdge Technologies develops solar energy conversion and management solutions and storage solutions for residential systems and commercial and industrial facilities, and sells inverters, batteries, and the SolarEdge Nexis platform, which integrates photovoltaic energy and storage. It is also developing the SST solid-state transformer for the electrical infrastructure of AI data centers, but this business has not yet generated revenue, as the company targets pilot installations in 2027 and commercial shipments in 2028. Current revenue comes primarily from the United States and Europe, with a smaller contribution from international markets.
In the second quarter of fiscal year 2026, revenue reached $346.2 million, up 11.5% from the previous quarter and 19.6% year over year. The United States accounted for 44.7% of revenue at $154.9 million, Europe accounted for 44.6% at $154.4 million, and international markets accounted for 10.7% at $36.9 million; European revenue jumped 36% from the previous quarter, while United States revenue declined 2%. GAAP gross margin rose to 27.5% from 22% in the first quarter of fiscal year 2026 and 11.1% a year earlier, but it benefited from a $13.3 million tariff refund.
GAAP net income remained negative in the second quarter of fiscal year 2026, as SolarEdge recorded a net loss of $30.8 million and a loss per share of $0.50, compared with a net loss of $57.4 million in the first quarter of fiscal year 2026. In contrast, it generated adjusted operating income of $10.2 million and adjusted net income of $3.6 million, marking its first return to adjusted net profitability since the second quarter of fiscal year 2023. Cash and marketable investments totaled $601.6 million as of June 30, 2026, with positive free cash flow of $3.1 million during the quarter.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on SEDG is Neutral, with an average price target of $37.5 and a wide range between $24 and $53, reflecting significant divergence regarding the sustainability of the recovery. The average target is less than half the 52-week range peak of $81.25, while the annual range extends to a low of $28.21; this valuation decline is consistent with continued GAAP losses and weaker-than-expected guidance for the third quarter of fiscal year 2026. No positive price-to-earnings multiple is available because of the trailing-12-month loss ending in 2026 of $364.3 million, so the valuation is primarily linked to the speed of restoring profitability and stabilizing United States and European demand.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
SolarEdge's revenue in the second quarter of fiscal year 2026 reached approximately $346.2 million, up 19.6% year over year and 11.5% from the previous quarter. European revenue jumped 36% quarter over quarter to $154.4 million, and the company shipped more than $60 million of three-phase Nexis. Adjusted gross margin also rose to 28.6%, supported by cost controls, product mix, operating leverage, and a $13.3 million refund of IEEPA tariffs. These factors resulted in adjusted operating income of $10.2 million, the first adjusted operating profit in nearly three years.
SolarEdge expects revenue between $310 million and $340 million in the third quarter of fiscal year 2026, compared with revenue of $346.2 million in the previous quarter. Management expects European revenue to decline by approximately $15 million at the midpoint of the range due to seasonality and does not expect the usual recovery in the United States residential market. The United States weakness is linked to slow tax credit financing and uncertainty surrounding FEOC, two factors that pressure installer liquidity and distributor purchases. Adjusted gross margin guidance also ranges between 22% and 26%, excluding any potential refunds of IEEPA tariffs.
In the second quarter of fiscal year 2026, SolarEdge began the effective rollout of the three-phase version of Nexis in Europe, and shipments exceeded $60 million. According to testing conducted by an independent consultancy cited by management, the platform could generate additional savings of €5,000 per home over 15 years compared with a leading European competitor, due to power-cycle efficiency and increased solar energy production. Nexis has also been approved by a growing number of United States financing platforms that include TPO, prepaid PPA, and loans. The company plans to launch the single-phase version in Europe during the first quarter of fiscal year 2027.
The context did not mention current revenue from the SST project in the second quarter of fiscal year 2026, as the project moved from development to technical demonstrations for potential customers. The demonstrations showed 99% efficiency and direct conversion from medium-voltage alternating current to a regulated direct-current bus. SolarEdge targets completing a laboratory system operating at the full three-phase voltage of 34.5 kilovolts by the end of 2026. The plan calls for data center trials during 2027, followed by the start of revenue and commercial shipments in 2028.
SolarEdge returned to profitability on an adjusted basis, recording adjusted operating income of $10.2 million and adjusted net income of $3.6 million in the second quarter of fiscal year 2026. Adjusted net income per share was $0.05, compared with an adjusted loss of $0.43 in the first quarter of fiscal year 2026. However, the company remained unprofitable under GAAP, with a net loss of $30.8 million and a loss per share of $0.50. Therefore, the results represent an important milestone in the operational turnaround, but they do not yet demonstrate sustainable GAAP profitability.
Cash, cash equivalents, and marketable investments totaled $601.6 million as of June 30, 2026, up from $581.1 million as of December 31, 2025. The second quarter of fiscal year 2026 generated positive free cash flow of $3.1 million, compared with negative free cash flow of $9.1 million a year earlier. Management expects positive free cash flow for the full fiscal year 2026, benefiting from improved performance, expense controls, and monetization of the 45X credit. In contrast, the company plans capital expenditures ranging between $60 million and $80 million during fiscal year 2026 to increase United States production capacity, research and development facilities, and the SST project.
