NextPower Soars on Strong Earnings, Lands Major Saudi Deal as Analyst Target Jumps
In a significant vote of confidence for the solar energy sector, NextPower Inc. (NASDAQ: NXT) received a notable price target upgrade from analysts at TD Cowen on Tuesday. The firm lifted its target to $105 from $88, maintaining a 'Hold' rating, in the wake of the company's stronger-than-expected fiscal third-quarter 2026 results and a raised full-year outlook.
The earnings report revealed a company in high gear. NextPower posted a 34% year-over-year revenue surge to $909 million, fueled by record order backlogs and sustained demand across its global operations. This financial strength culminated in a pivotal milestone: NextPower became the first pure-play solar technology company to secure an investment-grade credit rating from Fitch Ratings. Company executives believe this achievement will bolster customer trust and reduce future financing costs.
"The quarter wasn't just about the numbers; it was about strategic execution," a company spokesperson stated. Alongside the earnings beat, NextPower announced the finalization of 'NextPower Arabia,' a joint venture with Abu Nayyan Holding. The venture has already secured a colossal 2.25-gigawatt supply agreement for the Bisha Solar Project in Saudi Arabia, marking one of the largest single-project commitments in the industry this year.
While acknowledging headwinds, including approximately $44 million in tariff-related costs, management pointed to the successful integration of new platform components and bundled software services like 'TrueCapture' as key drivers for maintaining gross margins above 30%.
Buoyed by these developments, NextPower raised its fiscal 2026 revenue guidance to a range of $3.43 billion to $3.50 billion, underscoring a bullish stance on its near-term growth prospects in an increasingly competitive renewable energy market.
Market Voices: Analysts and Investors Weigh In
Michael Chen, Portfolio Manager at Greenhaven Capital: "This isn't just a quarterly beat; it's a validation of their asset-light, technology-focused model. The Saudi deal provides multi-year visibility, and the investment-grade rating is a game-changer for capital allocation. They're transitioning from a growth story to a quality infrastructure play."
Sarah Jenkins, Independent Renewable Energy Analyst: "The numbers are impressive, no doubt. But I'm watching execution risk on that Saudi mega-project closely. The solar tracker space is getting crowded, and tariff pressures aren't going away. The raised guidance feels ambitious—they'll need flawless operational performance to hit the high end."
David R. Miller, frequent contributor to investor forums: "Hold rating? With this performance and that deal? That's Cowen being overly cautious. This company is executing on all cylinders while others in cleantech are stumbling. The $105 target will look conservative in six months. The market is still underpricing the structural shift they're leading."
Priya Desai, Sustainability Fund Manager: "The Fitch rating is the quiet headline here. It lowers their cost of capital permanently and opens doors to a wider investor base. In a sector often seen as risky, this institutional stamp of approval is more valuable than a single quarter's earnings pop."