By Mackenzie Tatananni

Since its trading debut in 2023, Nextpower has emerged as a compelling way to play clean energy. The stock has more than doubled over the past 12 months -- and looks set to extend its run on the heels of its latest earnings report.

Shares surged 12%, to $118.30 on Wednesday, on pace for a record closing high, according to Dow Jones Market Data. The tech-heavy Nasdaq Composite was up 0.2%.

After Tuesday's closing bell, the solar technology developer posted fiscal third-quarter adjusted earnings of $1.10 a share, handily beating the 93 cents forecast by analysts. Revenue climbed 34% to $909.4 million; Wall Street was looking for $815.3 million.

Nextpower also raised its fiscal-year guidance, which wasn't surprising but was nonetheless encouraging. The company has a history of gradually bumping up its numbers each quarter.

Now, the company expects adjusted earnings of $4.26 to $4.36 a share and is targeting revenue of $3.43 billion to $3.5 billion The previous projections were $3.26 to $3.46 and $3.28 billion to $3.48 billion. The estimates of analysts polled by FactSet are $4.24 and $3.45 billion.

And Nextpower's announcement of a $500 million buyback, implemented over the next three years, certainly got Wall Street's attention. Guggenheim analyst Joseph Osha described the move as the company's "biggest incremental positive."

"This is the company's first significant return of capital, and signals the extent to which the company is confident in its ability to generate cash," Osha said.

As is often the case, Nextpower's commentary on bookings -- its purchase orders and signed contracts -- was vague. The company achieved strong bookings in the U.S. and a "record" in Europe, it said.

Guggenheim thinks the dollar figure was about $1 billion, which would be a dip from $1.1 billion in the fiscal second quarter. Nevertheless, the amount is a "strong outcome for Nextpower by historic standards."

The results "ticked a lot of the right boxes," according to analysts with BMO Capital Markets. The firm kept its Market Perform rating because of Nextpower's lofty valuation, but lifted its price target to $104 from $93.

Guggenheim, too, left its rating at Neutral with no price target. The firm has been neutral since October. It initiated coverage at Buy in February 2024.

In November, before rebranding from Nextracker to Nextpower, the company struck a deal in the Middle East with Saudi Arabia's Abunayyan Holding. The joint venture isn't contributing meaningfully to revenue just yet, Guggenheim said.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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January 28, 2026 12:59 ET (17:59 GMT)

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