SolarEdge Technologies Inc. (SEDG) First Take 2Q26 beat, but 3Q26 guidance below expectations

Equity Research 5 August 2026 | 8:02AM EDT

SolarEdge Technologies Inc. (SEDG): First Take: 2Q26 beat, but 3Q26 guidance below expectations

SEDG reported strong 2Q26 results as revenue of $346mn was above GSe and Brian Lee, CFA | FactSet consensus of ~$341mn, while adj. EPS of $0.05 also beat GSe/consensus of Goldman Sachs & Co. LLC

($0.04)/($0.02). The company also delivered another quarter of positive FCF, Tyler Bisset, CFA | although it was well below 1Q26. That said, management issued 3Q26 revenue and Goldman Sachs & Co. LLC

non-GAAP gross margin guidance that was below expectations, which we believe Keshav Choudhary | could be due to safe harbor and/or product mix and could further call into question, Goldman Sachs India SPL in our view, the pace of residential solar recovery moving through 2H26. Please find our initial takeaways within this report ahead of the company’s 8:00 a.m. ET conference call this morning.

n 2Q26 ahead of expectations. SEDG reported 2Q26 revenue of $346mn, above GSe/consensus of ~$341mn and within the company’s guidance range of $325mn-$355mn. Adj. EPS of $0.05 also exceeded GSe/consensus of ($0.04)/($0.02), while non-GAAP gross margins of 28.6% were above our 25.8% forecast and exceeded the company’s 23%-27% guidance range. SEDG shipped ~2.5mn optimizers and 62.6k inverters, below our forecasts of 2.9mn and 96.7k, respectively, while battery shipments of 426 MWh exceeded our 348 MWh forecast. n 3Q26 guidance below expectations. SEDG issued 3Q26 revenue guidance of $310mn-$340mn vs. GSe/consensus of $367mn/$368mn. The company also guided to 3Q26 non-GAAP gross margins of 22%-26%, compared to our estimate of 27.8%. n Positive FCF. SEDG delivered positive free cash flow of $3mn in the quarter vs. $21mn last quarter.

Our 12-month price target of $34 is based on a 22.5X P/E multiple on Q5-Q8 EPS.

Key risks include increases in energy prices, interest rate decline, increase in inverter pricing, lower costs, and broad market acceptance of SSTs.

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Goldman Sachs SolarEdge Technologies Inc. (SEDG)

SEDG 12m Price Target: $34.00 Price: $48.76 Downside: 30.3%

Sell GS Forecast 12/25 12/26E 12/27E 12/28E Market cap: $2.8bn Revenue ($ mn) 1,184.4 1,373.1 1,513.7 1,621.2 Enterprise value: $2.6bn EBITDA ($ mn) ( m ADTV: $188.2mn EBIT ($ mn) ( United States EPS ($) ( Americas Clean Energy P/E (X) NM NM 44.4 28.1 M&A Rank: 3 EV/EBITDA (X) NM NM NM 74.8 FCF yield (%) 5.6 0.5 (0.2) 1.4 Dividend yield (%) 0.0 0.0 0.0 0.0 Net debt/EBITDA (X) -- -- -- (6.7)

3/26 6/26E 9/26E 12/26E EPS ($) (

Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 4 Aug 2026 close.