Enphase Energy Shares Plunge After Earnings – AI Data Centres as New Growth Prospect
Fremont, USA – US solar technology company Enphase Energy reported a sharp drop in revenue and profit for the third quarter of 2026. Facing weak demand in the residential solar market, the company is expanding its product portfolio and developing power electronics for AI data centres.
Enphase Revenue Falls 28.5 Percent – Operating Profit Collapses
Enphase’s revenue in the third quarter of 2026 fell 28.5 percent year on year to USD 293.3 million (Q3 2025: USD 410.4 million). Of this, USD 85.0 million, or around 29 percent, came from so-called safe harbor shipments linked to US tax incentive rules.
Operating income plunged 90.2 percent from the year-earlier quarter to USD 6.5 million (Q3 2025: USD 66.2 million). Net income fell 64.9 percent to USD 23.4 million (Q3 2025: USD 66.6 million). Without a tax gain of USD 27.0 million, Enphase would have reported a net loss.
Sell-through to end customers via distribution channels in the US declined 35 percent year on year. Enphase also recorded weak demand in Europe, particularly in France.
For the fourth quarter, Enphase expects revenue of USD 225 million to 255 million. Compared with the year-earlier quarter (Q4 2025: USD 343.3 million), this would represent a decline of around 26 to 35 percent.
Enphase shares, which are listed in the RENIXX World renewable energy stock index, lost 21.3 percent over the first three trading days of the week, falling to EUR 22.21 (closing price on October 28, 2026, Boerse Stuttgart).
Enphase Expands Storage, Charging and Solar Technology Business
In the third quarter, Enphase shipped battery storage systems with a storage capacity of 129.9 MWh (Q3 2025: 195.0 MWh). The company is developing new home batteries, commercial battery systems, microinverters for larger solar systems and bidirectional charging technology for electric vehicles. In the US, a prepaid leasing model is also intended to support sales. For the fourth quarter, Enphase expects battery shipments of 100 to 120 MWh.
AI Data Centres: Enphase Develops Power Electronics for 800-Volt DC Grids
Enphase is developing a new business area with solid-state transformers (SSTs) for AI data centres. At the research laboratory in Austin, the company said it demonstrated the direct conversion of 13.8 kV AC voltage into 800 V DC voltage. The technology is intended to replace conventional conversion stages and reduce energy losses. During simulated rapid load changes, the output voltage remained stable, according to Enphase.
By the end of 2026, Enphase plans tests at 34.5 kV and with a megawatt-scale system. For the power modules, the company is cooperating with German semiconductor manufacturer Infineon. According to the company, the number of potential customers and partners in the SST segment has more than doubled and now stands at over 50. First customer pilot projects are planned for 2027, with commercial deliveries scheduled for 2028.
US Residential Solar Market Shrinks – AI Infrastructure Opens New Prospects
Enphase’s sales weakness reflects the declining US residential solar market. According to Wood Mackenzie, only 995 MW of residential solar capacity was installed in the second quarter of 2026, the lowest quarterly figure in five years. The end of the federal Section 25D tax credit and high interest rates are weighing on the market.
The market for residential rooftop systems is also weak in Europe. While the EU solar market grew slightly in the first half of 2026, the number of newly connected residential solar systems in the Czech Republic halved year on year to 6,191. In France, too, the number of smaller new connections declined. According to SolarPower Europe, the residential solar market shrank in 19 EU countries in 2025.
At the same time, NVIDIA and other industry partners are moving to power supply architectures with 800 V DC for AI data centres. Enphase aims to use its SST technology to open up a sales market outside the solar industry. Whether this develops into a significant business depends on successful scaling and commercialisation. In the short term, however, Enphase remains dependent on demand in the solar and storage markets.
Source: IWR Online, 29 Oct 2026
