Nextracker Exceeds Expectations, Analysts Update Estimates

Nextracker Inc. exceeded expectations with Q1 results, beating revenue forecasts by 2.7% and statutory EPS by 26%. Analysts have updated their estimates, with revenue expected to grow 8.9% to $3.38b in 2026 and EPS to decrease 3.3% to $3.56. The consensus price target has risen 6.2% to $69.88, with a wide range of estimates suggesting diverse views on possible outcomes for the business.

Nextracker Inc. (Nasdaq: NXT) has reported robust financial results for the first quarter of fiscal year 2026, ending June 27, 2025. The company's revenue for the quarter came in at $864 million, representing a 20% year-over-year (YoY) increase and a 27% growth in international revenue. This performance exceeded analysts' expectations, with revenue forecasts being beaten by 2.7% [1].

Key financial highlights include a GAAP gross profit of $282 million, up 19% YoY, and an adjusted EBITDA of $215 million, up 23% YoY. The company's GAAP operating margin reached 22%, reflecting the benefits of disciplined execution and ongoing investment in high-value technologies. The adjusted diluted EPS for the quarter was $1.16, up 18% YoY, and the adjusted net income was $176 million, up 23% YoY [1].

Nextracker's business highlights included achieving the top global market share for the 10th consecutive year, as well as strong quarter-over-quarter sales growth for its NX Horizon Hail Pro™ and NX Horizon-XTR™ series trackers, up 43% and 22%, respectively. The company also reported a total backlog over $4.75 billion and an operating cash flow of $81 million, with $743 million in cash at the end of the quarter and no debt [1].

The company also announced strategic acquisitions in advanced robotics and AI technologies, investing over $40 million in the past four quarters. These acquisitions aim to integrate real-time monitoring, robotic cleaning, and 3D site mapping with Nextracker's control and monitoring systems to enhance customer performance and reduce operational costs [1].

Analysts have updated their estimates following the Q1 results. Revenue is expected to grow by 8.9% to $3.38 billion in 2026, while EPS is projected to decrease by 3.3% to $3.56. The consensus price target has risen by 6.2% to $69.88, reflecting diverse views on the company's potential future performance [1].

Nextracker's strategy focuses on incorporating complementary technologies around its market-leading tracker systems to lower costs, accelerate construction timelines, and enhance system performance. The company believes these innovations will create new revenue and profit opportunities and strengthen its competitive position [1].

References:
[1] Nextracker Reports First Quarter Fiscal Year 2026 Financial Results [https://investors.nextracker.com/news/news-details/2025/Nextracker-Reports-First-Quarter-Fiscal-Year-2026-Financial-Results/default.aspx]