Trump Just Gave SolarEdge Stock a Lift. How You Should Play SEDG Here.

President Donald Trump just gave a major lift to companies like SolarEdge Technologies (SEDG) operating in the United States. On Aug. 26, Trump signed an emergency order that stops the purchase, import, and installation of foreign-made bulk-power systems and their associated software. 

In the executive order, Trump argues that these bulk-power systems could be a target of “those seeking to commit malicious acts against the United States.” These acts include “malicious cyber activities” that could have grave impacts on the U.S. economy, human health and safety, and national defense. 

The order could also set the stage for imposing conditions on the continued use, maintenance, and servicing of these foreign-made or foreign-operated bulk-power systems. This might leave a void for this kind of equipment, which companies like SolarEdge would likely rise to fill. 

However, SolarEdge fell into crisis in recent years, facing significant layoffs amid mounting pressure to cut expenses as sales declined and excess inventory built up in its key markets, the U.S. and Europe. The company is now in recovery mode, which may be why you should watch SEDG stock for now. 

About SolarEdge Stock

SolarEdge is a global smart energy company that designs, manufactures, and sells DC-optimized solar PV solutions for residential, commercial, and utility-scale markets. Headquartered in Herzliya, Israel with a corporate office in California, the company’s core products include power optimizers, inverters, energy storage systems, electric vehicle (EV) chargers, and cloud-based monitoring and energy management platforms. SolarEdge deploys its technology at sites across several countries. Currently, the company has a market capitalization of $1.98 billion.

Investors are still assessing SolarEdge's recovery. Operational recovery remains fragile, which is why SEDG stock has fallen marginally over the past 52 weeks. However, SEDG stock has also gained 13% year-to-date (YTD) as the market prices in a rebound. Shares reached a 52-week high of $81.25 on May 29 but are now down 60% from that level. 

SolarEdge stock is trading at a cheap valuation compared to industry peers with a price-to-sales (P/S) ratio of 1.6 times. 

SolarEdge Returns to Profit as Revenue Grows and Margins Improve

For the second quarter, non-GAAP revenue increased 23% year-over-year (YOY) to $345.5 million, coming in higher than the $341.7 million estimate that Wall Street analysts predicted. Non-GAAP gross margin improved from 13.1% in Q2 2025 to 28.6% in Q2 2026. 

Notably, SolarEdge returned to non-GAAP operating profitability for the first time since Q2 2023, reporting a non-GAAP operating profit of $10.2 million. Despite market-wide softness, margins improved due to “strong demand in Europe” combined with strength in U.S. commercial and industrial (C&I). SolarEdge earned non-GAAP EPS of $0.05 during the quarter, surpassing the $0.04 estimate that analysts projected. 

Wall Street analysts expect SolarEdge’s bottom line to improve robustly. For the current fiscal year, loss per share is expected to improve 66% annually to $1.23 per share, followed by a 94% improvement to a loss per share of $0.07 in fiscal 2027. 

What Do Analysts Think of SolarEdge Stock?

On Aug. 26, SEDG stock gained almost 11% after UBS upgraded SolarEdge from “Neutral” to “Buy” and raised its price target from $36 to $42. Analysts upgraded the stock after the Federal Communications Commission's decision to add foreign-produced connected inverters to its Covered List. UBS believes restrictions could tighten domestic inverter supply, potentially helping the company gain further market share. 

Barclays analyst Christine Cho recently maintained an “Equal-Weight” rating on SolarEdge stock but lowered her price target significantly from $53 to $37. Likewise, Goldman Sachs maintained a “Sell” rating on SolarEdge earlier this month and reduced its price target from $34 to $30.

Wall Street is taking a cautious stance on SEDG stock now with a consensus “Hold” rating overall. Of the 23 analysts rating the stock, one analyst has a “Strong Buy” rating, 18 play it safe with a “Hold” rating, and four analysts have a “Strong Sell” rating. The average price target of $33.39 implies minimal potential upside of just 2% from here. However, the Street-high price target of $42 from UBS indicates 29% potential upside from current levels.