Enphase Revenue Falls 29% as Solar Equipment Maker Forecasts Weaker Fourth Quarter

Enphase Energy reported a sharp annual decline in revenue on October 27, 2026, as the US solar equipment supplier described continued weakness in residential demand and issued a lower sales forecast for the final three months of the year.

The California-based company recorded third-quarter revenue of $293.3 million, compared with $410.4 million a year earlier, a decline of approximately 29%. Revenue was little changed from the second quarter's $291.9 million. Net income under generally accepted accounting principles fell to $23.4 million from $66.6 million a year earlier. Diluted earnings per share declined to $0.17 from $0.50.

Enphase forecast fourth-quarter revenue of $225 million to $255 million. That is management's estimate, not a confirmed outcome, and includes approximately $51.2 million of revenue associated with customers' safe-harbor purchases. The company expects sales through distribution channels to fall around 10% sequentially.

The company said US residential solar demand remained soft. Its global sell-through rose about 1% from the previous quarter, below its earlier expectation of 10% growth. Revenue in Europe declined about 11% sequentially. These figures describe different measures: sell-through tracks demand through the sales channel, while reported revenue includes sales to distributors and other customers.

Enphase shipped approximately 1.42 million microinverters, representing 655.2 megawatts of direct-current capacity, and 129.9 megawatt-hours of battery storage products during the quarter. Battery shipments rose from 113.8 megawatt-hours in the second quarter even as the broader solar market remained under pressure.

The company also reported progress on a solid-state transformer intended for power systems used by artificial-intelligence data centres. It demonstrated conversion from 13.8 kilovolts of alternating current to 800 volts of direct current. Customer pilots are targeted for 2027 and commercial shipments for 2028, so the development should not be counted as an established source of current revenue.

Enphase ended September with $931.8 million in cash, cash equivalents and marketable securities. The results highlight the distinction between ongoing technology development and the near-term effects of slower residential solar installations on the company's finances.