What Happened?
Shares of solar tracker company Nextracker (NASDAQ: NXT) fell 9.4% in the morning session after investors appeared to focus on potential headwinds and policy uncertainty, even as the company posted strong earnings and received positive analyst ratings.
The company reported strong first-quarter fiscal 2026 results, with revenue growing 20% year-over-year to $864 million and an adjusted earnings per share of $1.16 that beat expectations. This performance prompted several firms, including TD Cowen and B of A Securities, to raise their price targets. However, investors appeared to look past these positive headlines. The earnings report also highlighted a sequential decrease in revenue and operating cash flow compared to the prior quarter. Furthermore, Nextracker noted that increased operating expenses to support recent acquisitions were expected to be dilutive to near-term margins. Broader uncertainty surrounding U.S. policy for the solar sector also likely contributed to investor concerns, overshadowing the otherwise strong top-line growth.
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What Is The Market Telling Us
Nextracker’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 3.4% on the news that an analyst at Susquehanna raised their price target on the company. The investment firm increased its price objective on Nextracker to $76.00 from $66.00, while maintaining a "positive" rating on the stock. This new target suggests a potential upside of over 22% from the stock's current trading price. Nextracker specializes in in providing intelligent solar tracker and software solutions that are used in large-scale solar power projects. These systems allow solar panels to follow the sun's movement, optimizing energy production. The bullish sentiment from Susquehanna comes ahead of the company's first-quarter fiscal 2026 earnings report, which is scheduled for release on July 29, 2025.
Nextracker is up 51.7% since the beginning of the year, but at $59.93 per share, it is still trading 9.8% below its 52-week high of $66.45 from July 2025. Investors who bought $1,000 worth of Nextracker’s shares at the IPO in February 2023 would now be looking at an investment worth $1,967.
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