Why Nextracker Stock Skyrocketed Today

The sun was shining brightly on solar industry technology specialist Nextracker's (NASDAQ: NXT) stock on Thursday. After the company crushed analyst estimates in its latest quarterly-earnings report, satisfied investors pushed its share price up by nearly 12%, obliterating the S&P 500 index's 0.4% increase.

Energetic growth

After market hours Wednesday, Nextracker published its fourth quarter of fiscal 2025 figures, and it's little wonder the market was impressed. The company's revenue zoomed 25% higher on a year-over-year basis to hit $924 million. That, however, included advanced manufacturing, tax-credit vendor rebates of $75 million that were not accounted for in fiscal 2024's Q4.

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As for profitability, non-GAAP (adjusted) net income rose even more steeply, advancing by 36% to $193 ($1.29 per share).

Analysts tracking Nextracker didn't expect the company do so well. On average, they were estimating only $766 million for revenue and adjusted net income of $0.73 per share.

In its earnings release, Nextracker attributed its strong quarter to strong worldwide demand for solar solutions. It clearly expects to ride that momentum, as it quoted founder and CEO Dan Shugar as saying that "Our performance positions the company for further growth this year and enables continued investment in key strategic initiatives."

Speaking of investment, Nextracker announced that it has acquired privately held Bentek Corporation. The company is paying roughly $78 million in cash for its new asset.

A future that looks bright

Nextracker proffered guidance for the entirety of fiscal 2026, predicting that it would earn $3.2 billion to $3.4 billion in revenue, filtering down into adjusted net income of $3.65 to $4.03 per share. The consensus analyst estimates for the two fundamentals are just under $3.18 billion and $3.87 per share, respectively.

The company's earnings release was one of those rare reports in which it's hard to find much of a fault. With the hunger for sustainable power continuing to grow, Nextracker should be able to take full advantage of this long-tail, global trend.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.