Nextracker Inc (NASDAQ:NXT) Reports Strong Q2 FY26 Results and Raises Full-Year Outlook

Nextracker Inc (NASDAQ:NXT) announced financial results for its second quarter of fiscal year 2026, demonstrating robust performance that exceeded analyst expectations on both the top and bottom lines. The solar technology company's strong quarterly results were complemented by an increased full-year outlook, signaling continued momentum in the global solar energy market.

Quarterly Performance Versus Estimates

The company reported revenue of $905.3 million for the quarter ended September 26, 2025, representing a 42% increase compared to the same period last year. This performance substantially surpassed analyst revenue estimates of $847.0 million. The company's adjusted earnings per share of $1.19 also exceeded the consensus estimate of $1.02 per share.

Key financial metrics from the quarter include:

• Revenue beat: $58.3 million above estimates
• EPS beat: $0.17 above estimates
• Year-over-year revenue growth: 42%
• Adjusted EBITDA: $224 million, up 29% year-over-year
• Operating cash flow: $268 million year-to-date

Market Reaction and Price Action

Following the earnings release, Nextracker shares showed positive momentum in after-hours trading, climbing approximately 9.9%. This immediate market response suggests investor approval of the company's strong quarterly performance and upgraded guidance. The stock has demonstrated solid performance across multiple timeframes, with gains of 11.5% over the past two weeks and 20.3% over the past month, indicating sustained positive sentiment leading into the earnings announcement.

Business Highlights and Strategic Developments

Nextracker's quarterly performance was supported by several significant business achievements. The company reported a record backlog exceeding $5 billion, reflecting strong demand for its solar tracking technology. Management highlighted record quarterly bookings for electrical balance of systems solutions and foundation solutions, along with achieving record bookings in European markets.

The company also made strategic moves to expand its technology portfolio and global footprint:

• Acquisition of Origami Solar, launching an advanced module frame technology business
• Multi-gigawatt supply agreement for advanced module frames
• Joint venture agreement with Abunayyan Holding to form Nextracker Arabia, expanding presence in Saudi Arabia and MENA regions
• Launch of NX PowerMerge electrical balance of systems trunk connector

Updated Fiscal 2026 Outlook

Nextracker raised its full-year guidance for fiscal 2026, reflecting confidence in continued strong performance. The updated outlook compares favorably to both previous company guidance and analyst expectations.

| Metric | Updated FY26 Outlook | Previous Outlook | Analyst Estimates | |--------|----------------------|-------------------|-------------------| | Revenue | $3.275B - $3.475B | $3.2B - $3.45B | $3.416B | | Adjusted EBITDA | $775M - $815M | $750M - $810M | N/A | | Adjusted Diluted EPS | $4.04 - $4.25 | $3.96 - $4.27 | $4.21 |

The company's revenue guidance midpoint of $3.375 billion positions it comfortably within analyst expectations, while the adjusted EPS guidance range brackets the consensus estimate, suggesting management expects to meet or exceed current market projections.

Financial Position and Capital Structure

Nextracker maintained a strong balance sheet position with $845 million in cash and no debt as of quarter-end. The company highlighted the establishment of a $1 billion unsecured revolving credit facility at investment grade terms, enhancing its financial flexibility to support growth initiatives and strategic opportunities.

CEO Dan Shugar commented on the results, stating, "Nextracker delivered another strong quarter with robust financial performance amid accelerating global demand for our technology. Bookings for our tracker products remain healthy, leading to a record backlog of greater than $5 billion."

For investors seeking more detailed earnings analysis and future estimates, additional information is available through the company's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with financial advisors before making investment decisions.