Enphase Energy (ENPH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $293.3M, down 29% YoY; global sell-through rose 1% QoQ, below expectations, and channel inventory ended slightly above normal.

• Five growth vectors for 2027 and beyond: residential batteries, Propel leases, commercial solar and storage, bidirectional EV charging, and IQ SST for AI data centers.

Financial highlights

• Q3 GAAP gross margin was 43.3%, versus 47.8% YoY; operating income was $6.5M versus $66.2M, and net income was $23.4M versus $66.6M.

• Non-GAAP gross margin was 45.0% versus 46.8% in Q2; operating income was $53.6M versus $56.7M, and net income was $54.0M versus $61.5M.

• GAAP diluted EPS was $0.17 versus $0.50 YoY; non-GAAP diluted EPS was $0.41 versus $0.46 in Q2. Investment impairment reduced GAAP and non-GAAP diluted EPS by $0.15 and $0.14, respectively.

• Shipped 1.42M microinverters and 129.9 MWh of batteries, versus 1.8M microinverters and 195.0 MWh of batteries YoY; U.S. facilities shipped ~1.4M U.S.-made units and booked related 45X credits.

• Q3 revenue included $85.0M of safe-harbor revenue; nine-month revenue was $868.1M, down 23% YoY.

Outlook and guidance

• Q4 revenue guidance is $225M–$255M, including $51.2M of safe-harbor revenue; battery shipments are expected at 100–120 MWh.

• Q4 GAAP gross margin is forecast at 38%–41% and non-GAAP at 40%–43%, each including ~2 points of reciprocal-tariff impact; mix, battery price adjustments and freight costs weigh on margins.

• Q4 GAAP operating expenses are expected at $119M–$123M, including ~$43M of stock compensation and acquisition-related amortization; non-GAAP expenses are forecast at $76M–$80M.

• Sell-through is expected to decline ~10% QoQ to ~$210M; planned shipments of ~$190M would run ~$20M below sell-through to reduce channel inventory ahead of slow Q1.

• 2027 framework, not formal guidance: ~$200M quarterly core revenue plus ~$200M from growth drivers; residential battery shipments are expected to rise from ~450 MWh in 2026 to ~675 MWh in 2027.