SolarEdge Sinks 9.5% as Solar Selloff Deepens Despite Q4 Rebound

Overview

• Shares fell 9.5% to $36.57 on February 27, with trading at roughly half the stock’s average daily volume.
• Peers slid sharply after earnings, including Sunrun down 35%, Array Technologies down 34%, and Shoals Technologies down 31%, while the Invesco Solar ETF dropped 8% for the week.
• Tariffs, reduced federal incentives, and weakening residential demand are pressuring margins and growth, with Wood Mackenzie projecting an 18% decline in U.S. residential installations in 2026.
• SolarEdge beat Q4 expectations with roughly $334 million in revenue, up about 70% year over year, and an adjusted loss of $0.14 per share, delivering positive free cash flow despite a net margin near -34% and negative return on equity.
• Analyst views remain divided as the consensus rating sits at Reduce with a $27.28 average price target, while TD Cowen raised its target to $43 citing improving gross margin and cash generation.