Sunrun (RUN) has released its second quarter 2026 results, reporting sales of US$543.73 million and revenue of US$869.99 million, along with net income of US$115.15 million and a new US$267 million securitization of residential solar assets.

Sunrun’s share price has fallen 20.71% over the past 30 days and 49.38% year to date, while the 1 year total shareholder return is down 9.97%. This suggests momentum has been weak despite recent earnings and securitization news.

If Sunrun’s recent moves have you reassessing the clean energy space, this can be a good moment to scan the grid-focused opportunities in our 36 power grid technology and infrastructure stocks

For Sunrun, the recent slide sits alongside higher reported revenue and a fresh securitization, which pulls the spotlight onto the core question: Do these prices reflect the business today or a swing in sentiment?

Most Popular Narrative: 42.3% Undervalued

Sunrun’s most followed narrative pegs fair value at $17.05 versus the last close at $9.84, which frames the current share price as a steep discount that depends on how future cash generation plays out.

Sunrun is rapidly scaling its storage and grid services offerings, enrolling a growing portion of its customer base (currently ~35% of 200,000 batteries, aiming for 10 GWh of dispatchable energy by 2029), enabling significant recurring revenue growth and expanded margin opportunities as demand for grid support rises. This will positively impact long-term revenue and net margins.

It is worth examining what kind of revenue mix, margin profile, and earnings path would need to align for Sunrun to reach that fair value. The key assumptions behind those storage and grid services targets, along with projected profitability shifts, sit at the heart of this narrative. The numbers behind that 42.3% gap are where the real story starts.

Result: Fair Value of $17.05 (UNDERVALUED)

However, Sunrun’s story also hinges on two big swing factors: future tax credit changes that could shrink its addressable market and ongoing reliance on external financing.

Next Steps

Uncertain about which side of the Sunrun story feels more convincing right now, given both concerns and optimism in the data? Take a closer look at the 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Sunrun?

If Sunrun has you thinking more broadly about where to put your money to work, it makes sense to line up a few other focused opportunities too.

• Spot potential bargains early by scanning companies that currently look mispriced using our 49 high quality undervalued stocks.
• Strengthen the defensive side of your portfolio by focusing on companies with resilient financials through the 85 resilient stocks with low risk scores.
• Get ahead of the crowd by reviewing a screener containing 20 high quality undiscovered gems before they appear on everyone else's radar.

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.