NEXTracker Inc (NXT) saw its stock plummet 6.01% on Wednesday, following a sharp 11.4% drop in after-hours trading on Tuesday. The significant decline came despite the company reporting better-than-expected first-quarter results for fiscal year 2026, suggesting investors may have concerns about the company's future growth prospects and recent strategic moves.

The solar tracking systems manufacturer reported adjusted earnings per share of $1.16, surpassing the analyst consensus of $1.06. Revenue also beat expectations, coming in at $864.25 million compared to the estimated $850.19 million. However, the company's forward-looking statements and new initiatives seem to have overshadowed these positive results.

NEXTracker announced two previously undisclosed acquisitions, SenseHawk IP and Amir Robotics, along with the launch of a new AI and Robotics business. The company also appointed a Chief AI Officer, signaling a significant push into artificial intelligence and robotics. While these moves could potentially drive long-term growth, they may have raised questions among investors about the company's focus and capital allocation strategy.

Additionally, NEXTracker updated its fiscal year 2026 guidance, projecting adjusted EPS between $3.96 and $4.27 on revenue of $3.2 billion to $3.45 billion. Although this represents an increase from previous estimates, it may not have been enough to justify the stock's recent strong performance, with shares having risen 20.3% in the past quarter and 79.1% year-to-date prior to this plunge. The market reaction suggests that investors may have been expecting even more robust growth projections or are concerned about the sustainability of the company's recent performance in light of its new strategic direction.