Enphase Energy Shares Fall 4.5% After 41% Rally, Q1 Guidance Tops Estimates
Enphase Energy’s shares tumbled 4.54% between February 11 and 18 after a 41% surge earlier this month following its Q4 adjusted EPS beat of $0.71 and $342.3 million in revenue. The company’s Q1 2026 revenue forecast of $270–300 million surpasses the $263.2 million consensus, with 100–120 MWh battery shipments and 42%–45% gross margin guidance.
1. Recent Share Price Performance
Enphase Energy's shares fell 4.54% between February 11 and 18, following a 41% jump earlier in February. This pullback appears driven by investors booking profits after the stock's strong post-earnings rally.
2. Q4 2025 Earnings Beat
In Q4 2025, Enphase reported adjusted EPS of $0.71, surpassing estimates by $0.13, and revenue of $342.3 million, beating forecasts by over $3 million. US sell-through demand reached its highest level in more than two years ahead of a key tax credit expiration.
3. Q1 2026 Guidance Exceeds Estimates
Management forecast Q1 revenue between $270 million and $300 million, above the $263.2 million consensus, and projected battery shipments of 100–120 MWh alongside a 42%–45% adjusted gross margin. The guidance factors in approximately five percentage points of reciprocal tariff impact.
4. Analyst Upgrades and Price Target Raises
Following the earnings report, analysts from firms including Goldman Sachs, JPMorgan and Morgan Stanley raised price targets and issued upgrades. These revisions underscored positive sentiment but likely contributed to profit-taking that drove the recent pullback.