New York, Feb 4, 2026, 05:01 EST — Premarket
- Enphase shares surged roughly 23% in premarket trading following their quarterly earnings report and Q1 forecast
- Company projects Q1 revenue between $270 million and $300 million, factoring in roughly $35 million from “safe harbor” shipments
- BMO raises Enphase to market perform and boosts its price target to $41
Shares of Enphase Energy (ENPH.O) surged roughly 23% to $45.98 in early trading Wednesday following the solar microinverter maker’s December-quarter earnings report and first-quarter guidance.
The move is significant because Enphase serves as a quick gauge for U.S. rooftop solar demand, which can swing sharply with changes in policy and financing costs. CEO Badri Kothandaraman reported that U.S. “sell-through” demand jumped 21% from the previous quarter, reaching “our highest level in more than two years.” This surge was driven by installations ahead of the Section 25D tax credit expiration. GlobeNewswire
The company’s guidance factored in “safe harbor” shipments — gear sent early to secure tax-credit benefits under certain financing setups. Enphase projected first-quarter revenue between $270 million and $300 million, with around $35 million coming from these safe-harbor sales. It also estimated non-GAAP gross margins of 42% to 45%, factoring in about five percentage points hit from reciprocal tariffs. markets.businessinsider.com
Enphase closed Tuesday up 2.2%, finishing at $37.28. It’s still roughly $33 shy of its 52-week peak at $70.81, according to MarketWatch data.
Enphase posted $343.3 million in revenue for the fourth quarter, with GAAP net income hitting $38.7 million, translating to 29 cents per share. On a non-GAAP basis, which excludes stock-based compensation and similar items, earnings rose to 71 cents per share. The company also reported a gross margin of 46.1%.
Parts of the business remained under pressure. U.S. revenue dropped roughly 13% from the September quarter, while Europe saw a sharper decline, sliding 29% amid weaker demand. Safe-harbor revenue also tumbled, down to $20.3 million from $70.9 million. The company noted that tariffs cut about 5.1 percentage points off margins.
Analysts wasted no time adjusting their outlook. BMO Capital Markets raised Enphase to “market perform” from “underperform” and bumped its price target up to $41 from $31. The firm cited management’s stronger-than-expected confidence in sequential revenue gains for the second quarter. Investing.com
SolarEdge Technologies (SEDG.O) and Sunrun (RUN.O) showed modest gains before the market opened, each climbing about 1% in early trading.
The rebound depends on demand holding up after the tax-credit boost fades and on tariffs not further eroding margins. If Europe slows more sharply or U.S. installations drop off post-deadline, the notion that the first quarter marks the low point will face a real challenge.
Traders are eyeing whether the premarket gains stick once the regular session kicks off, before shifting focus to upcoming sector earnings. MarketScreener shows SolarEdge is set to report on Feb. 17, First Solar on Feb. 24, and Sunrun on Feb. 25. Enphase is expected to release its next results on April 27.
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