NEW YORK, February 4, 2026, 19:19 (EST) — Trading after the bell
- ENPH surged 38.6% from Tuesday’s close, finishing after-hours at $51.67
- Enphase expects first-quarter revenue between $270 million and $300 million
- RBC and BMO raised their ratings on the stock, citing less concern over a “demand bottom” after the results
Enphase Energy shares jumped 38.6% from Tuesday’s close to $51.67 in after-hours trading, hitting a high of $52.80 earlier as investors reacted to the solar equipment maker’s upbeat outlook and a series of upgrades.
This move is crucial as rooftop solar companies have struggled for months with sluggish installations, limited financing, and unpredictable policy shifts. Investors have been looking for a clear sign that channel inventory is shrinking and order flow is stabilizing.
Enphase, known for its microinverters and home batteries, reported fourth-quarter revenue of $343.3 million. U.S. sell-through demand climbed 21% from the previous quarter as homeowners rushed to install before the Section 25D tax credit expired. However, European revenue dropped 29% sequentially. The company also noted that tariffs cut non-GAAP gross margin by 5.1 percentage points.
Enphase expects revenue between $270 million and $300 million this quarter, factoring in about $35 million from “safe-harbor” sales—customers buying early to secure tax credits. It anticipates GAAP gross margins of 40% to 43%, and non-GAAP margins of 42% to 45%, both hit by roughly five points of tariff pressure. The company also plans to use cash on hand to settle $632.5 million in convertible notes due March 1. The Motley Fool
“We’re about 90% booked at the midpoint of our revenue guidance,” CEO Badri Kothandaraman told investors. He noted the first quarter remains “the low point,” with gains expected through 2026, especially in the latter half. Kothandaraman also pointed to a third-party owner model—where a partner owns the system and offers a prepaid lease—as a way to ease the impact of the tax-credit reset. Investing.com
RBC Capital’s Christopher Dendrinos boosted Enphase to “Outperform” from “Sector Perform,” raising the price target sharply to $54 from $31. He cited a bottoming in demand and highlighted Enphase’s “strong opportunity” to regain residential share and capture commercial market share with its new product launches. TipRanks
BMO Capital’s Ameet Thakkar bumped the stock from “Underperform” to “Market Perform,” boosting his price target to $41 from $31. He cited management’s “more definitive than we expected” guidance on stronger second-quarter revenue. Investing.com UK
SolarEdge climbed 13.0% to $35.04, while Sunrun jumped 12.2% to $20.73. The Invesco Solar ETF also rose, gaining 4.5% to $58.10.
A major concern shadows the trade: will the surge in demand ahead of the Section 25D change trigger a slump later in 2026? Plus, is Europe set to remain weak even if U.S. bookings hold steady? William Blair analyst Jed Dorsheimer sounded a note of caution, suggesting the U.S. solar market could still drop around 20% this year.
Traders will be eyeing Thursday’s session to see if the rally sticks after the upgrade buzz dies down. They’ll also watch for any signs that stronger second-quarter demand translates into installer orders instead of just one-off safe-harbor shipments. The March 1 debt maturity looms as a key date for cash flow and buyback activity.
SolarEdge will deliver its earnings before the market opens on February 18, marking the next major checkpoint for the sector. Investors often look to this report for clues on pricing trends and demand in the residential solar hardware market.
