Enphase Energy (NASDAQ: ENPH) Faces Solar Slump Amid Data Center Expansion & Price Target Cut

Font: Financial Modeling Prep  • May 04, 2026

• Enphase Energy (NASDAQ: ENPH) is expanding its focus into the data-center power equipment market with its new IQ Solid-State Transformer architecture, designed for AI data centers.
• Barclays analyst Christine Cho lowered the price target for Enphase Energy to $30 from $31, reflecting a cautious outlook and placing the new target below the stock's current price of $32.51.
• In its first-quarter 2026 earnings report, Enphase Energy reported a 28.6% year-over-year revenue decline to $282.9 million and a GAAP loss of 6 cents per share, primarily due to a slowdown in the U.S. solar market.

Enphase Energy (NASDAQ: ENPH) is a global energy technology company known for its solar microinverters and battery storage systems. The company is now expanding its focus, aiming to enter the data-center power equipment market with its new IQ Solid-State Transformer architecture, designed for AI data centers.

Reflecting a cautious outlook, Christine Cho of Barclays lowers the price target for Enphase Energy to $30 from a previous target of $31. A stock price target is an analyst's estimate of a stock's future price. This adjustment places the new target below the stock's price of $32.51 at the time of the update.

This analyst revision follows the company's recent financial results. In its first-quarter 2026 earnings report, Enphase Energy announced that revenue fell by 28.6% year-over-year to $282.9 million. This decline is attributed to weaker sales and a general slowdown in the U.S. solar market.

The drop in revenue led to a GAAP loss of 6 cents per share. This is a notable shift from the earnings of 22 cents per share reported in the same quarter of the previous year. GAAP, or Generally Accepted Accounting Principles, offers a standardized way to view a company's financial performance.

As highlighted by Barron's, the slump in solar demand has overshadowed the company's strategic move into the data-center market. The stock is currently trading at $32.44, with a market capitalization of approximately $4.28 billion. For its second quarter, Enphase Energy projects revenues between $280 million and $310 million.