NEXTracker Inc (NXT) saw its stock plummet 6.01% on Wednesday, despite reporting better-than-expected first-quarter fiscal year 2026 results. The solar tracking systems manufacturer beat analyst estimates but failed to impress investors with its future outlook and strategic moves.

The company reported Q1 adjusted earnings of $1.16 per share, surpassing the FactSet analyst consensus of $1.04. Revenue for the quarter reached $864.3 million, up from $719.9 million a year earlier and exceeding the expected $840.8 million. Despite these strong numbers, NEXTracker's stock dropped 11.4% in extended trading following the earnings release, suggesting that investors were looking for even more robust growth or had concerns about the company's future prospects.

NEXTracker also announced two previously undisclosed acquisitions of SenseHawk IP and Amir Robotics, launching an AI and Robotics business and appointing a Chief AI Officer. While these moves indicate the company's efforts to diversify and innovate, they may have raised questions among investors about the potential costs and integration challenges associated with these expansions. Additionally, the company provided an updated FY2026 outlook, projecting adjusted EPS between $3.96 and $4.27 on revenue of $3.2 billion to $3.45 billion. Although this guidance was slightly higher than previous estimates, it may not have been enough to offset the market's concerns about the company's valuation and growth trajectory in an increasingly competitive renewable energy sector.