Nextpower Inc. (NASDAQ:NXT), the recently rebranded solar technology platform formerly known as Nextracker, delivered a robust third-quarter performance that handily exceeded analyst expectations, propelling its stock higher in after-hours trading.
The company reported fiscal Q3 2026 revenue of $909.4 million, a significant 33.9% increase compared to the same period last year. More notably, this figure surpassed the Wall Street consensus estimate of approximately $820.4 million. Profitability metrics also came in strong, with adjusted earnings per share (EPS) of $1.10, beating the analyst forecast of $0.94 by 17.1%.
Quarterly Performance vs. Estimates
The company's latest results demonstrate clear operational strength against a backdrop of high expectations.
- Revenue: $909.4 million reported vs. ~$820.4 million estimated.
- Adjusted EPS: $1.10 reported vs. $0.94 estimated.
- Year-over-Year Growth: Revenue increased by 33.9%, while adjusted EBITDA grew 15% to $214 million.
Market Reaction and Forward Guidance
The market responded positively to the earnings beat and the company's raised outlook. Following the report, the stock saw an after-market gain of approximately 8.6%. This positive momentum builds on a strong recent trend, with the stock up roughly 16% over the past month.
Management bolstered investor confidence by raising its full-year fiscal 2026 guidance. The updated outlook now calls for revenue between $3.425 billion and $3.500 billion, with adjusted EPS in the range of $4.26 to $4.36. This revised revenue midpoint of about $3.46 billion aligns closely with the current analyst consensus estimate of $3.48 billion for the year, while the EPS guidance appears favorable against expectations.
For the upcoming fourth quarter, analysts are projecting revenue of approximately $867.8 million and adjusted EPS near $0.99.
Key Highlights from the Quarter
Beyond the headline financials, the earnings report underscored Nextpower's strategic evolution and financial discipline.
- Strategic Rebrand and Expansion: The quarter marked its first as "Nextpower," reflecting a strategic shift from a pure-play tracker supplier to an end-to-end solar technology platform. The company expanded its U.S. operations and solidified its international footprint, notably through the formation of the Nextpower Arabia joint venture, which has already secured a 2.25 GW supply commitment for a major project in the MENA region.
- Record Backlog and Financial Strength: The company achieved a record backlog, driven by strength in the U.S. and record bookings in Europe. Financially, it maintains a fortress balance sheet with $953 million in cash and no debt, supported by $391 million in operating cash flow year-to-date. This strength was recognized with an investment-grade credit rating from Fitch.
- Capital Return Initiative: Demonstrating confidence in its future cash flow generation, the board authorized a new share repurchase program of up to $500 million over three years.
Conclusion
Nextpower's third-quarter results paint a picture of a company executing effectively on both growth and profitability fronts. By surpassing revenue and profit estimates, raising its annual guidance, and showcasing strategic momentum through its rebrand and global expansion, the company has given investors clear reasons for optimism. The strong after-market stock movement suggests the market is rewarding this combination of outperformance and a confident outlook.
For a detailed look at Nextpower's historical earnings and future analyst estimates, visit the earnings and estimates page on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
