Nextpower posts record $1.11B revenue; Enphase falls 28% on credit expiry

pv magazine USA reports that solar industry results for Q3 2026 reveal a mixed performance picture. The small-scale distributed market is struggling following the end of Section 25D tax credits last year. Against this backdrop, Nextpower posted record $1.11 billion in revenue. The company reports a 23% year-over-year sales increase.

Nextpower Financials

Nextpower set new records for both sales and bookings as it expanded operations outside its historical core areas. This diversification is evident in the revenue composition, where non-tracker offerings made up about 22% of total revenue, up from 14% in the previous period. Within the quarter, these non-tracker items also constituted more than 20% of total bookings.

For the future, the firm elevated its fiscal 2027 revenue outlook to between $4.2 billion and $4.45 billion. It further anticipated generating over $500 million in free cash flow across the entire fiscal year. CFO Chuck Boynton highlighted that the company closed the quarter holding in excess of $1 billion in cash. He pointed out that Nextpower maintained zero debt while financing recent acquisitions. Boynton indicated that the business distributed roughly $162 million to investors via stock buybacks.

Tesla Storage

Tesla disclosed total revenue of $28.0 billion, remaining unchanged from the previous year. Within this figure, the energy generation and storage segment experienced a 16% year-over-year revenue drop to $2.88 billion. The company installed 13.7 GWh of energy storage in the quarter, pushing its 2026 year-to-date cumulative total to 36 GWh.

CEO Elon Musk indicated that demand is still very robust, highlighting that Megapack inventory is almost exhausted through the end of 2027. Tesla has started shipping Megapacks equipped with its proprietary in-house LFP batteries. During the earnings call, the firm offered no commentary on prospects for producing solar cells within the United States.

Corning Solar

Corning’s solar segment generated 8.6% of the company’s total $5.08 billion in Q3 revenue. The business expanded 37% year-over-year, driven by increased demand following the implementation of Section 232 tariffs. Management projects the division will eventually reach $3 billion in annual revenue. Despite this growth, the segment swung to a $7 million net loss for the quarter.

Metric	Q3 2026	Prior Year
Net Income	-$7 million	$30 million

While top-line growth accelerated significantly, the segment moved from a $30 million profit to a loss.

Enphase Decline

• Q3 2026 total revenue fell to $293.3 million, a 28.5% drop from $410.4 million in the prior year.
• The company issued soft guidance for Q4 2026, citing high interest rates and residential weakness.
• COO Badrinarayanan Kothandaraman stated it is difficult to see how 2027 will perform due to interest rates and FEOC restrictions.

Enphase Analyst Downgrade and Data Center Pivot

ROTH Capital Partners analyst Philip Shen questioned Enphase’s 2027 outlook, noting his firm’s recent release anticipates lower revenues for the coming year compared to the historically down 2026. In response, Enphase COO Badrinarayanan Kothandaraman cited high interest rates and unclear guidance regarding FEOC restrictions as primary drivers of uncertainty. ROTH Capital Partners subsequently downgraded its opinion on the company to neutral, stating that variables such as elevated commodity prices, Treasury’s FEOC/PFE guidance, and deteriorating AI sentiment are outside management’s control. The firm wrote that it continues to think highly of the management team and applauds how the company has navigated these challenging times. Separately, Enphase reported a successful test of its IQ Solid-State Transformer, a product aimed at AI data centers that converts 13.8 kV AC power to 800 VDC.

What to watch

Nextpower’s next major milestone is its Capital Markets Day, scheduled for November 16th in Las Vegas.