Microinverter and battery storage supplier Enphase Energy reported a revenue of $293.33 million in the third quarter (Q3) of 2026, down 28.5% year-over-year (YoY) from $410.43 million. Revenue missed analysts’ expectations by $11.82 million.

Net profit declined 64.9% YoY to $23.387 million from $66.638 million. Earnings per share (EPS) fell to $0.17 from $0.50, missing analysts’ expectations by $0.09.

Enphase attributed the fall in revenue to high interest rates, the expiration of the U.S. residential solar tax credit, and weaker European demand, particularly in France.

In Q2 2026, Enphase reported a revenue of $291.85 million, down 20% YoY from $363.15 million.

9M 2026

Enphase reported a revenue of $868.08 million in the first nine months (9M) of 2026, down 23.2% YoY from $1.13 billion. Profit fell 61% to $52.06 million from $133.42 million, while EPS declined to $0.39 from $1.01.

Business Updates

Enphase shipped approximately 1.42 million IQ Microinverters, representing 655.2 MW of solar capacity, and 129.9 MWh of IQ Batteries during Q3 2026.

The company shipped approximately 1.4 million U.S.-manufactured microinverters and battery inverters and 63.8 MWh of IQ Batteries from its Texas facility. The U.S. accounted for 80% of its revenue, with international markets contributing the remaining share. More than 26,000 installers worldwide were certified to install IQ Batteries.

U.S. residential solar demand remained weak, with the sell-through declining 35% YoY, as elevated borrowing costs constrained purchases by homeowners using loans.

Enphase said higher interest rates also made third-party ownership options more attractive following the expiration of the Section 25D tax credit.

European demand remained tepid, particularly in France. Battery storage contributed approximately 50% of the company’s European revenue in Q3. In France, battery activations declined 12% and microinverter activations fell 24%.

Enphase converted 13.8 kV AC directly to 800 V DC for artificial intelligence (AI) data center applications using its IQ Solid-State Transformer (IQ SST) technology. Its IQ SST customer and partner pipeline exceeded 50, and the company began manufacturing power modules in the U.S. to assemble and validate full-scale transformer racks.

The IQ Meter Collar received approval for behind-the-meter installations from 80 utilities across the U.S. and Canada. Enphase opened pre-orders for the IQ Battery C80, its first commercial battery energy storage system, from the U.S.

Enphase expanded support for IQ Battery 10C installations to enable battery storage and whole-home backup for U.S. and Canadian homeowners with third-party solar systems. It also expanded metering compatibility for the IQ EV Charger 2 in Europe and introduced an AI Assistant in the Enphase App.

The company expects residential solar to account for 72% of its 2026 revenue, residential batteries for 21%, and commercial solar, electric vehicle (EV) charging, and other businesses for 7%.

Enphase estimates that approximately 500,000 solar-only customers in The Netherlands represent a battery retrofit opportunity worth nearly $2 billion. It is also targeting approximately 2.5 million Dutch households with third-party solar systems ahead of the scheduled end of net metering in December 2026.

The company is also targeting Australia’s residential battery market, which it estimates at 12 GWh annually, for its IQ Battery G5.

The IQ Battery C80 provides 80 kWh of storage and 40 kW of continuous power per unit. Enphase targets a 40% share of the U.S. small commercial solar and storage market over time, representing an estimated $250 million annual revenue opportunity for the product.

The company is collaborating with three U.S. automotive manufacturers and one European manufacturer on bidirectional EV charging. Its DC solution is designed for 400 V and 800 V vehicles and up to 11.5 kW of bidirectional power.

Outlook

For Q4 2026, Enphase expects a revenue of $225 million to $255 million, including approximately $51.2 million in safe harbor revenue. IQ Battery shipments are projected to range between 100 MWh and 120 MWh.

The company forecasts a GAAP gross margin of 38% to 41% and a non-GAAP gross margin of 40% to 43%, including an approximately two-percentage-point impact from reciprocal tariffs. GAAP operating expenses are expected at $119 million to $123 million and non-GAAP expenses at $76 million to $80 million.

Enphase plans to ship approximately $20 million below expected sell-through in Q4 to reduce channel inventory ahead of the first quarter of 2027, which is seasonally weaker.

It expects approximately 450 MWh of residential battery shipments in 2026 and growth of around 50% in 2027 to approximately 675 MWh. Pilot deployments of the fifth-generation IQ Battery G5, which offers up to 30 kWh in one stack, are scheduled for Q4 2026, followed by volume shipments in Q1 2027.

The company expects its commercial business revenue to rise from approximately $30 million in 2026 to more than $100 million in 2027. It targets approximately 100 MWh of commercial battery shipments in 2027, with IQ Battery C80 pilots in Q1 and volume shipments in Q2.

Enphase expects bidirectional EV charging solutions to begin volume shipments in Q1 2027 and generate $15 million to $20 million in revenue that year.

For IQ SST, Enphase plans to demonstrate 34.5 kV conversion and megawatt-scale systems by the end of 2026. It targets customer pilots in the second half of 2027 and initial commercial shipments in 2028, subject to compliance testing. The company estimates approximately $1 billion in annual revenue by 2030.