Nextpower Inc (NXT) Stock Forecast & Price Target

Nextpower is supported by record Q2 FY27 revenue of $1.11B, backlog above $6B, and a clear pattern of outperforming expectations, as revenue and non-GAAP EPS of $1.11B and $1.31 both exceeded consensus while adjusted EBITDA reached $249.7M. The outlook is strengthened by rapid diversification beyond trackers: non-tracker products rose to about 22% of revenue, energy storage added roughly $100M of revenue and over $20M of adjusted EBITDA in its first quarter, and the company secured a 1.1 GW inverter framework agreement while completing the Zimmermann acquisition for approximately EUR 230M. Financial flexibility also supports the thesis, with over $1B of cash, no debt, $135M of adjusted free cash flow, and continued buybacks, even as management lifted FY27 guidance on revenue, adjusted EBITDA, and adjusted EPS for the third consecutive quarter.

Nextpower is facing a fundamentally negative setup because its earnings power is being pressured by margin compression, with adjusted gross margin at 32.0% down 460 bps sequentially and adjusted EBITDA coming in below expectations despite revenue of $1,109.3 million. The company also has heavy exposure to U.S. policy and trade risk, since roughly three-fourths of fiscal 2026 revenue came from the U.S. and ongoing AD/CVD, tariff, IRA, and 45X credit uncertainty could disrupt demand and delay installations. In addition, management’s second-half guidance implies weaker margins and integration risk is rising as the company absorbs multiple acquisitions while freight, steel, and storage-related costs remain elevated.