SolarEdge Technologies reported its third‑quarter 2025 results on November 5, 2025, posting revenue of $340.2 million—$6.7 million above the $333.5 million consensus estimate—and a non‑GAAP loss per share of $‑0.31, beating the $‑0.38 expectation by $0.07. The earnings beat was driven by a 44.5% year‑over‑year revenue increase, largely fueled by higher sales of U.S.‑made solar inverters and a growing data‑center portfolio that offset a decline in the residential solar market.
SolarEdge’s gross margin expanded to 18.8% from 13.1% in the prior quarter, a 5.7‑percentage‑point lift attributable to a higher mix of high‑margin U.S. products, improved operational efficiency, and the continued ramp‑up of its AI‑data‑center solutions. The company’s GAAP net loss narrowed to $50.1 million, while the non‑GAAP loss fell to $‑18.3 million, reflecting a significant turnaround from the $1.21 billion GAAP loss reported in Q3 2024.
Management guidance for the fourth quarter projects revenue of $310 million to $340 million, below the consensus range of $341 million to $343 million. The lower outlook reflects concerns about a potential slowdown in the U.S. residential solar market as tax credits expire, as well as the need to invest in the new data‑center platform. SolarEdge’s CEO, Shuki Nir, emphasized that the company remains focused on cost discipline and strategic investments in high‑growth verticals.
On November 5, SolarEdge announced a partnership with Infineon Technologies to jointly develop a solid‑state transformer (SST) platform for next‑generation AI and hyperscale data centers. The collaboration will deliver a modular 2‑5 MW SST building block that combines Infineon's silicon‑carbide switching technology with SolarEdge’s power‑conversion and control topology, targeting more than 99 % efficiency and direct medium‑voltage (13.8–34.5 kV) to 800–1500 V DC conversion. The partnership positions SolarEdge beyond its core solar inverter business into the high‑growth AI data‑center market, offering a compact, low‑CO₂ footprint solution that meets the emerging 800‑volt DC architecture.
CEO Shuki Nir said the partnership “positions SolarEdge for the AI era” and that the company’s turnaround is “steady, with three consecutive quarters of revenue growth and improving margins.” He added that the collaboration brings world‑class semiconductor innovation to SolarEdge’s DC architecture, enabling smarter, more efficient energy systems for AI workloads.
Investors reacted positively to the earnings beat and the Infineon partnership, viewing the latter as a significant tailwind that offsets near‑term headwinds in the residential solar market. The market’s enthusiasm underscores confidence in SolarEdge’s strategic pivot and its ability to capture high‑margin opportunities in the AI data‑center sector.
The partnership also signals SolarEdge’s commitment to diversifying its revenue streams and reducing reliance on the cyclical solar market, while leveraging its expertise in DC power conversion to address the growing demand for efficient power infrastructure in AI‑driven data centers.
The company’s guidance, while cautious, reflects a realistic assessment of near‑term market conditions and a focus on maintaining profitability through disciplined cost management and strategic investments in high‑growth verticals.
The announcement and earnings release together highlight SolarEdge’s progress in its turnaround strategy and its strategic positioning to capitalize on the rapidly expanding AI data‑center market.
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