SolarEdge Technologies (NASDAQ:SEDG) Shares Gap Up on Earnings Beat

SolarEdge Technologies, Inc. (NASDAQ:SEDG) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $37.13, but opened at $40.26. SolarEdge Technologies shares last traded at $35.3910, with a volume of 5,067,836 shares trading hands.

The semiconductor company reported ($0.14) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.19) by $0.05. The firm had revenue of $333.80 million during the quarter, compared to analysts’ expectations of $330.33 million. SolarEdge Technologies had a negative net margin of 53.65% and a negative return on equity of 77.21%. The business’s revenue for the quarter was up 70.9% on a year-over-year basis. During the same quarter in the previous year, the company earned ($3.52) earnings per share.

Key Headlines Impacting SolarEdge Technologies

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: Q4 results beat expectations: revenue rose ~70.9% YoY to $333.8M and EPS loss narrowed to ($0.14), beating estimates — signals revenue recovery and improving operating performance. SolarEdge Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Management outlined 2026 margin-expansion targets, a global rollout for its Nexis product and an AI data-center power strategy — strategic moves that could drive higher long-term margins and new revenue streams. SolarEdge outlines 2026 margin expansion targets and Nexis global rollout while advancing AI
• Positive Sentiment: Q1 revenue guidance band ($290M–$320M) implies a midpoint above consensus, suggesting modest near-term demand stability despite seasonality. SolarEdge Technologies Inc (SEDG) Q4 2025 Earnings Call Highlights: Robust Revenue Growth Amid …
• Positive Sentiment: Elevated call-option buying activity shows increased bullish/speculative interest from traders, which can amplify short-term upside if sentiment flips.
• Neutral Sentiment: Management hosted an earnings call with detailed remarks and Q&A (transcript available) — useful for parsing assumptions behind guidance and margin targets. SolarEdge Technologies, Inc. (SEDG) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Operational indicators (shipments, cash flow) reportedly improved, supporting the recovery story but not yet translating into sustained GAAP profitability. SolarEdge Technologies Q4 Earnings Top Estimates, Revenues Rise Y/Y
• Negative Sentiment: Profitability remains a key concern: the company still reports a large negative net margin and negative ROE, and analysts model a deeply negative FY EPS — reasons investors may be selling into the rally. SolarEdge Press Release PDF

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. BMO Capital Markets boosted their target price on SolarEdge Technologies from $19.00 to $25.00 and gave the company an “underperform” rating in a research note on Thursday, November 6th. Wells Fargo & Company decreased their price objective on SolarEdge Technologies from $42.00 to $33.00 and set an “equal weight” rating for the company in a research report on Friday, December 19th. Raymond James Financial started coverage on SolarEdge Technologies in a research note on Tuesday, January 13th. They set a “market perform” rating for the company. Royal Bank Of Canada lifted their price target on shares of SolarEdge Technologies from $25.00 to $34.00 and gave the company a “sector perform” rating in a research note on Thursday, November 6th. Finally, TD Cowen upgraded shares of SolarEdge Technologies from a “hold” rating to a “buy” rating and upped their price target for the company from $34.00 to $38.00 in a report on Friday, January 9th. One research analyst has rated the stock with a Buy rating, sixteen have assigned a Hold rating and eight have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $25.45.

Institutional Trading of SolarEdge Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its stake in SolarEdge Technologies by 8.7% in the first quarter. Goldman Sachs Group Inc. now owns 997,962 shares of the semiconductor company’s stock valued at $16,147,000 after purchasing an additional 79,461 shares in the last quarter. DekaBank Deutsche Girozentrale boosted its holdings in shares of SolarEdge Technologies by 42.9% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 66,000 shares of the semiconductor company’s stock valued at $1,308,000 after buying an additional 19,800 shares during the last quarter. Phoenix Financial Ltd. bought a new position in shares of SolarEdge Technologies in the second quarter valued at $216,000. Nisa Investment Advisors LLC increased its holdings in SolarEdge Technologies by 276.5% during the second quarter. Nisa Investment Advisors LLC now owns 4,100 shares of the semiconductor company’s stock worth $84,000 after buying an additional 3,011 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new stake in SolarEdge Technologies during the second quarter worth $846,000. Institutional investors own 95.10% of the company’s stock.

SolarEdge Technologies Trading Down 5.5%

The business’s 50 day simple moving average is $32.53 and its 200 day simple moving average is $33.65. The stock has a market cap of $2.10 billion, a price-to-earnings ratio of -3.63 and a beta of 1.66. The company has a quick ratio of 1.60, a current ratio of 2.28 and a debt-to-equity ratio of 0.78.

About SolarEdge Technologies

SolarEdge Technologies (NASDAQ: SEDG) is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company’s core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge’s technology enables real-time performance monitoring and rapid fault detection to enhance system reliability.

In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools.