Shares of Nextpower jumped sharply in pre-market trading, rising 11.9% after the company released first-quarter fiscal 2027 results that outperformed analyst expectations by a wide margin. On an adjusted basis, Nextpower posted earnings per share of $1.20 versus a consensus estimate of $0.70, and reported revenue of $935 million compared with a $637.71 million analyst forecast. Revenue rose 8% compared with the same quarter a year earlier.
Profitability metrics were a notable driver of investor enthusiasm. Adjusted gross margin expanded to 37%, well above the company's usual low-30% target range. Management attributed the stronger margin profile to tariff recoveries under the IEEPA framework, a richer mix of revenue from the U.S., and robust demand for the firm's TrueCapture software platform.
Operationally, Nextpower reported an expanded backlog of more than $5.5 billion, which includes roughly $300 million attributable to its energy storage business. The balance sheet remained strong, with cash resources of more than $1.2 billion and no outstanding debt.
On the corporate development front, Nextpower completed its acquisition of power conversion assets from Zigor Corporation and its U.S. subsidiary Apex Power. Management presented this transaction as a move to bolster inverter capabilities for utility-scale solar and energy storage projects at a time when a potential U.S. ban on foreign inverter imports could create advantages for domestic suppliers.
Analysts reacted positively to the quarter. Truist Securities raised its price target on the stock to $145 from $140 and reiterated a Buy rating, reflecting heightened confidence following the results.
Investors' initial reaction to the print was muted when results were released after market close on Thursday. Shares dipped roughly 1.8% as attention focused on the company’s full-year adjusted EPS guidance midpoint of $4.58, which was slightly below the $4.72 analyst consensus. In the following pre-market session, however, market participants appeared to re-evaluate the significance of the quarter’s large upside.
The broader market backdrop was supportive during the pre-market move: the NASDAQ was up 1.2%, the S&P 500 gained 0.5%, and the Dow Jones rose 0.6% in early trading, a context that coincided with Nextpower’s share strength. Taken together, the historic earnings beat, margin improvement, record backlog, strategic acquisition, and a raised analyst price target outweighed the guidance shortfall and helped lift the stock well above its prior close of $96.90 in pre-market trading.
What to watch next
- Whether management's full-year guidance is revised in coming updates and how that compares with analyst expectations.
- Execution on integrating the acquired inverter assets and any contribution they make to utility-scale solar and storage projects.
- How tariff recoveries and shifts in revenue mix continue to influence gross margins going forward.