That wraps up our initial coverage of Enphase’s Q2 results. Thank you for stopping by!
Enphase Energy (NASDAQ:ENPH) reported a 60.0% GAAP gross margin in Q2, but that headline figure received a major boost from tariff refunds.
The company recognized $45.4 million of tariff refunds in gross profit, adding 15.6 percentage points to GAAP gross margin. Excluding one-time items, non-GAAP gross margin reached 46.8%, up from 43.9% in Q1 but below 48.6% one year ago.
The underlying improvement is still encouraging. Reciprocal tariffs reduced Q2 gross margin by approximately two percentage points, less than half the 4.3-point impact recorded in Q1.
Enphase is moving its IQ Solid-State Transformer beyond the conceptual stage, with several AI data-center opportunities progressing to formal RFI and RFP processes.
Management said the potential pipeline represents multiple gigawatts of demand. Enphase also completed a 15-module series stack operating at 4.16 kilovolts and remains on track to demonstrate a full IQ SST system later this year.
The project could expand Enphase beyond residential solar into the much larger AI infrastructure market. The next major validation point will be converting technical engagement with customers into commercial orders.
Enphase Energy just reported earnings, with shares initially up 4% following the report. Here are the key numbers:
Q3 Guidance:
Quick Read:
Enphase delivered a modest revenue beat and matched EPS expectations, while its Q3 revenue midpoint landed slightly above consensus.
Safe-harbor revenue more than doubled sequentially to $84.3 million, helping offset continued uncertainty surrounding the residential solar recovery.
Tonight’s headline numbers matter less than what management says about Q3. Enphase Energy (NASDAQ:ENPH) already flagged that Q1 and Q2 sell-through was tracking 10% to 15% below prior expectations, so investors want a Q3 revenue floor after the Section 25D expiration.
Q3 revenue guide above $300 million, safe harbor sustained near the $40-$50 million CEO estimate, batteries above 150 MWh, and European battery activations building on ~75% Netherlands growth.
Guide below $270 million, gross margin under 42%, or cautious commentary on U.S. channel inventory. With shares at $36.33 and a P/E of 36, tone on Propel scaling toward 500 originations weekly is the swing factor.
Enphase Energy (NASDAQ:ENPH) heads into tonight’s Q2 report with split analyst sentiment. The consensus 12-month price target sits at $48.93, with 3 strong buy, 8 buy, 17 hold, 1 sell, and 2 strong sell ratings. Shares last traded near $36.47, well below the 52-week high of $73.74 and above the low of $25.78.
Recent target activity is mixed. Citigroup lifted its target to $43 from $31 on July 23. Argus trimmed to $38 on July 24. GLJ Research raised to $24.47 from $21.70 while keeping a Sell, citing margin pressure. With shares down 20.11% over the past month, options skew stays cautious.
| Firm | Analyst | Rating | Price Target | Date |
|---|---|---|---|---|
| GLJ Research | Gordon Johnson | Sell | $24.47 | Jul 28, 2026 |
| Argus | Research Team | Hold | $38.00 | Jul 24, 2026 |
| Citigroup | Vikram Bagri | Buy | $43.00 | Jul 23, 2026 |
With shares trading today at $36.45, here are some questions analysts are likely to have to Enphase Energy on tonight’s call:
With Enphase Energy (NASDAQ:ENPH) hours from its Q2 earnings report, here is the balanced setup beyond the guidance and price targets already covered.
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Enphase’s earnings.
Simply stay on this page, and new updates will appear below automatically. We expect Enphase to release earnings shortly after 4:05 p.m. ET.
Enphase Energy reports Q2 earnings after today’s close with guidance calling for $280 million to $310 million in revenue, including approximately $85 million of safe-harbor sales.
The anticipated tariff drag narrows to roughly three percentage points from 4.3 points in Q1, providing a modest tailwind. More important will be signs that Propel prepaid-lease originations are stabilizing U.S. demand, European “green shoots” are strengthening, and the new IQ SST product can establish Enphase in AI data-center power.
Enphase is attempting to evolve beyond subsidy-dependent residential solar into a broader energy-electronics platform spanning batteries, EV charging, and data centers and currently trades at a share price of $36.35. A clean beat with stronger Propel disclosure could support Citigroup’s $43 price target, while a weak Q3 outlook would strengthen GLJ Research’s bear case and $24.47 target.
Live coverage has ended. The full story is below.
Enphase Energy (NASDAQ:ENPH | ENPH Price Prediction) reports Q2 2026 results tonight, July 28, at 4:05 PM ET. Shares trade near $36.60, down 20.11% in a month, setting the stage for a tense earnings report for the residential solar company.
Q1 2026 revenue landed at $282.9 million with non-GAAP EPS of $0.47, as U.S. residential revenue fell 23% sequentially after the Section 25D pull-forward exhausted itself. Non-GAAP gross margin compressed to 43.9%, weighed by a 6.7-point PTC monetization hit and 4.3 points of reciprocal tariffs.
Management cut both U.S. battery list prices 12% to 14% and European battery prices about 10% to defend market share. Europe already responded: April battery activations jumped about 75% in the Netherlands and about 27% in Germany versus the Q1 monthly pace.
| Metric | Q2 2026 Estimate | YoY Change | Guidance Midpoint |
|---|---|---|---|
| Revenue | $290.91M | vs. $363.15M prior year | $295M |
| EPS (Non-GAAP) | $0.46 | vs. $0.69 prior year | n/a |
| Non-GAAP Gross Margin | 44%-47% | vs. 48.6% | 45.5% |
Revenue lands roughly 20% below the prior-year comp, a reset the sell-side has already digested. The margin band actually widens quarter-over-quarter thanks to lower tariff rates, but PTC accounting and safe harbor mix keep the reported number lumpy.
Tonight I’ll be watching four specific items when CEO Badri Kothandaraman takes the call. First, Propel origination velocity. Management wants to move from 200 net originations per week to 500 by the end of Q4, with an 84% battery attach rate already validating unit economics.
Second, the IQ Solid-State Transformer commentary. Enphase now sizes the AI data-center power opportunity at 11 gigawatts by 2031, with customer pilots in 2027 and volume in 2028. Any named partner or funded engagement would rerate the growth narrative.
Third, European battery run-rate. April was strong, but Q2 needs to convert those activations into revenue that offsets ongoing U.S. TPO financing challenges, which Kothandaraman flagged as the primary headwind alongside weather.
Fourth, channel inventory. Enphase said it would under-ship by about $25 million in Q2 to normalize U.S. stock. Investors will focus on whether that correction stays contained or bleeds into Q3.
| Quarter | EPS Surprise | 1-Day Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q4 2025 | +21.43% | -8.52% | -6.66% | -20.92% |
| Q3 2025 | +37.22% | -3.24% | +3.4% | -8.22% |
| Q2 2025 | +9.00% | -2.65% | -8.44% | +4.66% |
| Q1 2025 | -5.96% | +1.51% | -1.07% | -12.05% |
On average, shares moved -3.19% in the week after earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
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