Enphase shares sink after hours on weak demand and cautious Q4 outlook

what happened

Enphase Energy shares dropped roughly 16% in after-hours trading on Tuesday, according to Stocktwits, after the solar technology maker reported third-quarter revenue of $293.3 million and adjusted earnings of $0.41 per share. Both figures came in below analyst forecasts of about $305 million and $0.50.

Global sell-through rose only about 1% from the previous quarter, well under the company's own target of around 10%. In the U.S., sell-through was up 5% sequentially but down 35% from a year earlier, a decline the CEO tied to high interest rates and the expiry of a 30% tax deduction on renewable home installations. Revenue in Europe fell about 11%, with France particularly weak.

For the fourth quarter, management guided revenue to $225–$255 million and expects global sell-through to drop roughly 10% sequentially. The company also plans to ship about $20 million less than it sells through to trim distributor inventory. Over the longer term, it is betting on home batteries, a solid-state transformer for AI data centers and other areas.

why it matters

Enphase is seen as a bellwether for household solar demand, so weak volumes in the U.S. and Europe and a cautious outlook weigh on sector sentiment. Investors are weighing longer-term battery and AI data center projects, but their contribution is still pushed further out.

market impact

Enphase shares: weak demand and a cautious outlook pressure the stock

• ▼Enphase shares pressure down — weak demand and a cautious fourth-quarter outlook

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