SolarEdge Technologies Inc. (SEDG) saw its shares plummet 5.20% during intraday trading on Wednesday, a sharp reversal from earlier pre-market gains following the release of its fourth-quarter and full-year 2025 financial results.
The smart energy firm reported Q4 revenue of $335.4 million, a 70% year-over-year increase that beat analyst estimates of $329 million. Adjusted earnings per share also came in better than expected at -$0.14, compared to the consensus estimate of -$0.26. However, the company posted a substantial net loss of $132.1 million for the quarter, highlighting ongoing profitability challenges despite top-line growth.
Investor sentiment turned negative as the market digested the significant losses and the company's guidance for the first quarter of 2026. SolarEdge expects Q1 revenue in the range of $290 million to $320 million, which is roughly in line with analyst expectations but may indicate a sequential slowdown. Additionally, analyst coverage shows a predominantly "hold" rating with a median price target of $33.00, approximately 11% below the stock's previous closing price, suggesting limited upside potential in the near term.