Enphase guides lower for fourth quarter as it pursues data center power

Enphase Energy guided to lower fourth-quarter revenue of $225 million to $255 million after reporting third-quarter revenue of $293.3 million, according to its earnings release filed with an 8-K.

The solar microinverter maker reported GAAP gross margin of 43.3% and non-GAAP gross margin of 45.0%. GAAP net income was $23.4 million, or $0.17 per diluted share, and non-GAAP net income was $54.0 million, or $0.41 per diluted share.

Impairment charges on investments reduced GAAP earnings per share by $0.15 and non-GAAP earnings per share by $0.14, the release said. The company ended the quarter with $931.8 million in cash, cash equivalents and marketable securities.

Fourth-quarter outlook

Enphase's fourth-quarter revenue guidance includes about $51.2 million of what the company calls safe harbor revenue. It also expects GAAP gross margin of 38.0% to 41.0%, including about 2.0 percentage points of reciprocal tariff impact.

Data center push

The company said it demonstrated its IQ SST technology converting 13.8 kilovolt alternating current to 800 volts of direct current, and that it is developing data center power solutions for two global technology leaders. Badri Kothandaraman is president and chief executive.

Why it matters

Residential solar demand has been weak, and changes to federal tax credits have created uncertainty for installers and homeowners. The sequential drop in revenue guidance reflects that pressure.

The data center work is an effort to apply Enphase's power conversion expertise to a fast-growing market as AI computing drives demand for more efficient power systems. Investors will look for details on how quickly that work could produce revenue.

Sources

1. Enphase Energy, Inc. Form 8-K with third-quarter 2026 results, filed Oct. 27, 2026 (accession 0001463101-26-000101)

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