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Enphase Energy’s 35% Europe Surge: Can It Offset A 34% U.S. Solar Slide?

Enphase Energy reported second quarter 2026 revenue of $291.9 million, reflecting a 3% sequential increase driven mainly by strength in European markets offsetting softness in the U.S. The revenue included $84.3 million related to safe harbor sales, which are shipments to third-party owners with installations expected over multiple years. While global sell-through remained roughly flat sequentially, U.S. sell-through declined approximately 7% quarter-over-quarter and about 34% year-over-year, primarily due to macroeconomic pressures, including higher interest rates and the expiration of the 25D tax credit. Despite these challenges, third-party data suggest some stabilization in U.S. residential solar with modest growth in permits and upstream sales, particularly in storage and commercial solar sectors. Gross margins showed improvement with non-GAAP gross margin increasing to 46.8% from 43.