ENPH: Enphase Energy Shares Sink After Q3 Guidance Falls Short
July 23 - Enphase Energy 
ENPH shares nosedived about 7% in early Wednesday trading after the solar technology firm issued a weaker-than-expected third-quarter outlook and highlighted ongoing tariff challenges.
The company forecast Q3 revenue between $330 million and $370 million, slightly below the consensus of $368.35 million. The guidance includes shipments of 190 to 210 megawatt-hours of IQ Batteries.
Gross margins are expected in the range of 41% to 44% on a GAAP basis, including a 3% to 5% hit from tariffs. Adjusted margins are projected at 43% to 46%, with the benefit of the Inflation Reduction Act (IRA) factored in.
Tariffs remain a key headwind, particularly for battery products. The company noted steps to diversify its supply chain and reduce reliance on Chinese components, where tariffs have been steep. CEO Badri Kothandaraman said the final tariff rate dropped from a proposed 145% to 30%, softening the Q3 margin impact.
Enphase shares are down 38% so far in 2025. Analysts raised questions on whether strategic initiatives would be sufficient to navigate tariff effects and balance inventory levels across global markets.
Is ENPH Stock a Buy?
Based on the one year price targets offered by 33 analysts, the average target price for Enphase Energy Inc is $47.25 with a high estimate of $86.00 and a low estimate of $19.80. The average target implies a upside of +11.18% from the current price of $42.50.