Why Nextracker Stock Skyrocketed Today

The sun was shining brightly on solar industry technology specialist Nextracker's (NASDAQ: NXT) stock on Thursday. After the company crushed analyst estimates in its latest quarterly-earnings report, satisfied investors pushed its share price up by nearly 12%, obliterating the S&P 500 index's 0.4% increase.

Energetic growth

After market hours Wednesday, Nextracker published its fourth quarter of fiscal 2025 figures, and it's little wonder the market was impressed. The company's revenue zoomed 25% higher on a year-over-year basis to hit $924 million. That, however, included advanced manufacturing, tax-credit vendor rebates of $75 million that were not accounted for in fiscal 2024's Q4.

Image source: Getty Images.

As for profitability, non-GAAP (adjusted) net income rose even more steeply, advancing by 36% to $193 ($1.29 per share).

Analysts tracking Nextracker didn't expect the company do so well. On average, they were estimating only $766 million for revenue and adjusted net income of $0.73 per share.

In its earnings release, Nextracker attributed its strong quarter to strong worldwide demand for solar solutions. It clearly expects to ride that momentum, as it quoted founder and CEO Dan Shugar as saying that "Our performance positions the company for further growth this year and enables continued investment in key strategic initiatives."

Speaking of investment, Nextracker announced that it has acquired privately held Bentek Corporation. The company is paying roughly $78 million in cash for its new asset.

A future that looks bright

Nextracker proffered guidance for the entirety of fiscal 2026, predicting that it would earn $3.2 billion to $3.4 billion in revenue, filtering down into adjusted net income of $3.65 to $4.03 per share. The consensus analyst estimates for the two fundamentals are just under $3.18 billion and $3.87 per share, respectively.

The company's earnings release was one of those rare reports in which it's hard to find much of a fault. With the hunger for sustainable power continuing to grow, Nextracker should be able to take full advantage of this long-tail, global trend.

Should you invest $1,000 in Nextracker right now?

Before you buy stock in Nextracker, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nextracker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $829,511!*

Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.