Enphase Energy: 2Q Results Approximately Align, 3Q Slightly Lower, Encouraging Initial SST Progress

Research evidence excerpt

Enphase Energy: 2Q Results Approximately Align, 3Q Slightly Lower, Encouraging Initial SST Progress

J P M O R G A N North America Equity Research

29 July 2026

Enphase Energy Neutral

ENPH, ENPH US

2Q Results Approximately Align, 3Q Slightly Lower, Price (28 Jul 26):$36.32

Encouraging Initial SST Progress Price Target (Dec-27):$40.00

ENPH reported 2Q revenue and PF EPS approximately in-line with Street Clean Energy, Power Infrastructure,

expectations and adjusted gross margins modestly ahead. As expected, the quarter and Sustainable Investing

was characterized by continued US residential softness offset by European Mark Strouse, CFA AC

recovery, improving margin trajectory as tariff headwinds moderated, and (1-212) 622-8244

continued progress on the IQ Solid-State Transformer (IQ SST) data center mark.w.strouse@jpmorgan.com

opportunity. GAAP results were meaningfully distorted by a one-time IEEPA tariff Clean Energy / Sustainable Investing

refund, which we address below. We view management's tone as measured but Michael G Fairbanks

incrementally more constructive, particularly on Europe and battery demand as (1-212) 622-4908

well as SST progress. We are updating our estimates. Our YE27 price target michael.fairbanks@jpmchase.com

remains $40. Maintain Neutral. Anna Zhu

(1-212) 622-0012

anna.zhu@jpmorgan.com

• Results largely in line. 2Q PF EPS of $0.46 came in just below the Street's J.P. Morgan Securities LLC

$0.47 on in-line revenue of $292mm, with non-GAAP gross margin of 46.8%

ahead of Street at 45.1% as reciprocal tariff headwinds moderated to ~2 points

Key Changes (FYE Dec)

from ~4.3 points in 1Q. Note that GAAP gross margin of 60.0% was inflated

Prev Cur Δ

by a one-time $45.4mm IEEPA tariff refund adding 15.6% to margin. FCF of Adj. EPS - 27E ($) 2.11 2.28 8.1%