SolarEdge Technologies to Post Q4 Earnings: Here's What to Expect

SolarEdge Technologies SEDG is scheduled to release fourth-quarter 2025 results on Feb. 18, before market open. The company delivered an earnings surprise of 18.4% in the last reported quarter. 

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors That Might Have Impacted SEDG’s Q4 Performance

SolarEdge Technologies’ fourth-quarter earnings are likely to have benefited from its entry into Europe’s largest commercial and industrial (C&I) self-consumption market by generating incremental revenues from its integrated solar-plus-storage solutions, particularly its commercial battery systems. Strong early demand and initial project deployments in this market should have contributed to higher shipment volumes. This expansion likely supported top-line growth and enhanced margins in the fourth quarter. 

During the fourth-quarter, SolarEdge Technologies surpassed 500 MWh of storage capacity in virtual power plants spanning 16 U.S. states, Canada and Puerto Rico. This should help the company monetize its battery and energy management technology beyond traditional hardware sales. The major milestone is expected to have enhanced the overall performance in the to-be-reported quarter. 

On Sept. 18, 2025, SolarEdge Technologies reached a significant milestone in advancing its manufacturing strategy aimed at supplying U.S.-made solar technology globally. The company initiated its first international shipments, representing an important move toward delivering high-quality, competitively priced American-made products to overseas markets. This is expected to have had a positive impact on fourth-quarter earnings. 

The company’s cost-cutting efforts, solid revenue growth expectations, reductions in operating expenses and improvements in the gross margin are likely to have boosted its fourth-quarter earnings.

In the fourth quarter, tariffs are expected to have weighed on SolarEdge Technologies’ profitability by raising component and import costs, particularly for products sourced from tariff-affected regions like China. The company’s bottom line is expected to have been negatively impacted by incremental tariff impact.

SEDG’s Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at a loss of 19 cents per share, indicating a year-over-year improvement of 94.6%.

SEDG expects fourth-quarter revenues to be in the range of $310-$340 million. The Zacks Consensus Estimate for revenues is pinned at $328.48 million, implying a 67.4% increase year over year.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for SolarEdge Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
 

SolarEdge Technologies, Inc. Price and EPS Surprise

SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, SolarEdge Technologies carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

First Solar FSLR is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 24. It has an Earnings ESP of +0.18% and a Zacks Rank #3 at present.

FSLR’s long-term (three to five years) earnings growth rate is 33.5%. The Zacks Consensus Estimate for fourth-quarter sales is pinned at $1.57 billion, which implies a year-over-year increase of 3.9%. 

Sunrun RUN is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 26. It has an Earnings ESP of +87.34% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for sales is pinned at $656.91 million, indicating a year-over-year increase of 26.7%.

Delek US Holdings DK is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 27. It has an Earnings ESP of +8.19% and a Zacks Rank #3 at present.

DK’s long-term earnings growth rate is 29.43%. The Zacks Consensus Estimate for earnings is pinned at a loss of 24 cents per share, indicating a year-over-year improvement of 90.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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