Q1 2026 results in focus

SolarEdge Technologies (SEDG) opened 2026 with Q1 revenue of US$310.5 million and a basic EPS loss of US$0.94, alongside trailing twelve month revenue of US$1.28 billion and a basic EPS loss of US$5.99. Over recent quarters the company has seen revenue move from US$196.2 million in Q4 2024 to between roughly US$219.5 million and US$340.2 million through 2025. Over the same period, quarterly basic EPS has ranged from a loss of US$0.84 to a loss of US$5.00, setting up this latest result as another checkpoint on the path analysts expect toward improving earnings. For investors, the mix of billion dollar scale sales and ongoing losses keeps the focus squarely on how quickly margins can stabilise and potentially recover.

See our full analysis for SolarEdge Technologies.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the dominant narratives around SolarEdge, and where the data challenges or supports those stories.

Losses narrow against 2025 run rate

• Q1 2026 net loss was US$57.4 million on US$310.5 million of revenue, compared with quarterly losses between US$50.1 million and US$287.4 million across the last six reported quarters.
• Bulls argue that expanding into larger systems and software can lift margins, yet the trailing twelve month net loss of US$364.3 million against US$1.28b of revenue shows how much earnings still need to improve for that story to play out.
  • Supporters point to bullish forecasts that margins could move from roughly a 34.2% loss to a 7.6% profit, while the latest quarter still shows losses across each of the last six periods.
  • Even with a smaller Q1 loss than some 2025 quarters, the trailing twelve month basic EPS loss of US$5.99 highlights that any margin recovery case is starting from a clearly loss making base.

On these numbers, bulls are effectively betting that a business producing US$1.3b of sales and a sizeable loss today can steadily move toward positive margins. It is therefore worth reading the more optimistic argument in full before you decide where you stand 🐂 SolarEdge Technologies Bull Case.

Unprofitable today with mixed valuation signals

• SolarEdge is unprofitable over the last 12 months and losses have grown at about 60.1% per year over five years, while the stock trades on a P/S of 1.9x compared with 8.7x for the US Semiconductor industry and 19.4x for peers.
• Bears focus on this combination of ongoing losses and valuation tension, because a P/S discount sits alongside a DCF fair value of US$23.67 that is below the current US$40.61 share price.
  • Critics highlight that trailing twelve month net loss of US$364.3 million and a basic EPS loss of US$5.99 do not yet line up with the roughly 99.7% annual earnings growth that some forecasts assume.
  • The gap between the US$40.61 market price and the US$23.67 DCF fair value in the data is one reason cautious investors question how much of the future recovery is already reflected in the stock.

If you are weighing that P/S discount against the DCF gap and loss profile, it can help to see the full cautious case set out side by side with the numbers 🐻 SolarEdge Technologies Bear Case.

Revenue scale vs slower forecast growth

• On a trailing basis SolarEdge generated US$1.28b of revenue, with revenue growth in the dataset forecast at 9.3% per year compared with a cited 11.4% annual growth rate for the broader US market.
• Analysts' consensus view balances that slower forecast growth against expectations for an earnings recovery, framing US$1.28b of sales and a US$364.3 million trailing loss as a business that may move toward modest profitability rather than rapid expansion.
  • Consensus narrative notes that margins are expected to shift from roughly a 185.2% loss to around break even, which is a very different profile from the stronger profit margins assumed in some bullish scenarios.
  • Because the same forecasts tie that margin shift to revenue of about US$1.6b and relatively small earnings, the story centers on gradual repair in the existing business rather than aggressive market share or pricing power assumptions.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SolarEdge Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With such a split view between bullish recovery hopes and cautious valuation concerns, it helps to move quickly, test the forecasts against the figures, and decide where you stand using the 2 key rewards and 1 important warning sign.

See What Else Is Out There

SolarEdge is still reporting sizeable losses and a DCF fair value that sits below the current share price, so the risk reward trade off is tight.

If that mix of ongoing losses and valuation tension feels uncomfortable, shift your attention to companies with healthier upside potential using the 44 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.