Enphase Energy Hits Record Low After Earnings Miss and Weak Q4 Guidance Trigger Analyst Downgrades

Enphase Energy shares plunged to a record low of $25.80, falling more than 20% in premarket trading on October 28, after the solar microinverter maker reported third-quarter 2026 revenue of $293.3 million, which came in at the low end of guidance and missed analyst expectations. The company shipped approximately 1.42 million IQ Microinverters and 129.9 megawatt hours of IQ Batteries in the quarter, with non-GAAP gross margin declining to 45% from 46.8% in the second quarter.

The sharper blow came from fourth-quarter guidance, which calls for revenue of only $225 million to $255 million, a steep sequential drop that management attributed to soft residential solar demand, elevated channel inventory, higher interest rates, and the expiration of the federal Section 25D tax credit. The sell-off has now pushed the stock down roughly 60% from its peak last year, cutting the company's market capitalization from approximately $9.5 billion to around $3.9 billion.

At least two Wall Street firms cut their ratings on the stock following the results. Oppenheimer downgraded Enphase to Perform from Outperform, while Roth Capital moved to Neutral from Buy and set a price target of $30. Seeking Alpha also published a sell-rated analysis citing the weak outlook and difficult industry conditions.