SolarEdge Shares Plunge Over 20% Despite Q2 Revenue Growth on Weak Q3 Forecast

Israeli solar panel developer and manufacturer SolarEdge, listed on Nasdaq, saw its stock drop more than 20% following the release of its Q2 2026 financial report. The sharp decline was driven primarily by a disappointing revenue forecast for Q3, despite relatively strong performance in the second quarter. Analysts had expected Q3 revenues of $371 million, but SolarEdge projected a lower range of $310 million to $340 million, which disappointed investors and triggered the sell-off.

In Q2, SolarEdge reported revenues of $346 million, up from $289 million in the same quarter last year. Although the company remains unprofitable, it narrowed its net loss to $16 million compared to a $115 million loss in Q2 2025. According to the company’s own profitability metrics, which do not follow standard accounting rules, SolarEdge posted a $10 million profit. CEO Zvi Lando described the quarter as a significant milestone in the company’s recovery, highlighting 20% revenue growth year-over-year, a substantial reduction in operating loss, and a return to operating profit by their internal measures for the first time since Q2 2023.

Lando attributed the growth to strong demand in Europe and robust commercial and industrial customer segments in the U.S., which offset weakness in the U.S. residential market. He emphasized ongoing momentum building through scaling the Nexus platform in core markets and advancing SolarEdge’s technology to capitalize on opportunities in AI manufacturing.

Despite the positive quarterly results, the cautious outlook for Q3 overshadowed the gains, leading to the stock’s steep decline. SolarEdge’s shares are known for volatility, having experienced dramatic swings in the past.