NEXTracker Inc (NXT) saw its stock plummet 5.73% in pre-market trading on Wednesday, following a sharp decline in after-hours trading on Tuesday. The significant drop came despite the solar tracking systems manufacturer 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 company reported adjusted earnings per share of $1.16, surpassing the analyst consensus of $1.04. Revenue also beat expectations, coming in at $864.3 million, up from $719.9 million a year earlier and exceeding the expected $840.8 million. However, these positive results were overshadowed by the market's reaction to NEXTracker's forward-looking statements and new initiatives.

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 appear to have raised questions among investors about the company's focus and capital allocation strategy in an increasingly competitive renewable energy sector. Additionally, NEXTracker's updated fiscal year 2026 guidance, projecting adjusted EPS between $3.96 and $4.27 on revenue of $3.2 billion to $3.45 billion, may not have been enough to justify the stock's recent strong performance, with shares having risen significantly in the past quarter prior to this plunge.