Find the sweet spot where growth is strong and price is still reasonable. P/E, PEG, and relative valuation analysis for growth-at-a-reasonable-price investing. Find value in growth with comprehensive valuation tools. Array Technologies (NASDAQ: ARRY) posted an unexpected profit in its Q1 2026 earnings, triggering a price target increase from Morgan Stanley. The solar tracker provider reported adjusted EPS of $0.06, significantly beating the consensus estimate of a $0.05 per-share loss, while revenue surpassed expectations despite a year-over-year decline.
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- Earnings Surprise: Array Technologies posted an adjusted Q1 2026 profit of $0.06 per share, significantly above the expected loss of $0.05 per share. This marked a notable turnaround in earnings performance.
- Revenue Beat but Decline: Revenue totaled $223.4 million, beating consensus by roughly $22 million, but still fell 26% year-over-year due to lower average selling prices.
- Analyst Action: Morgan Stanley raised its price target for ARRY to $8 from $7, while keeping an “Equal Weight” rating. The revision came shortly after the earnings release and suggests the bank acknowledges improved near-term fundamentals.
- Market Context: The positive earnings surprise comes amid a broader push toward clean energy investments in the United States. Array Technologies remains a key player in the solar tracker market, which benefits from increasing utility-scale solar installations. However, pricing pressure continues to weigh on top-line growth.
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Key Highlights
Array Technologies, Inc. (NASDAQ: ARRY), a global leader in utility-scale solar tracker technology, recently delivered a surprise profit in its Q1 2026 earnings report released earlier this month. The company reported adjusted earnings per share of $0.06, topping the analyst consensus that had anticipated a loss of $0.05 per share. Revenue for the quarter came in at $223.4 million, exceeding expectations by approximately $22 million. However, this still represented a 26% decline year-over-year, driven by lower average selling prices (ASPs) for its tracker systems.
Following the earnings release, Morgan Stanley updated its outlook on the stock. On May 8 (last week), the investment bank raised its price target on Array Technologies from $7 to $8, while maintaining an “Equal Weight” rating. The revision reflects the positive surprise from the company's bottom-line performance, which exceeded Wall Street’s expectations in a challenging pricing environment.
Array Technologies is a leading American manufacturer and provider of solar tracking systems that enable utility-scale solar projects to generate more electricity by following the sun’s path. The company has been navigating headwinds from lower ASPs and broader industry pressures, but the Q1 beat suggests potential stabilization in margins.
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Expert Insights
The surprise Q1 profit for Array Technologies may indicate that the company is managing costs effectively even as revenue declines. The adjusted EPS of $0.06, compared to expectations of a loss, could signal improving operational efficiency or a shift in product mix toward higher-margin offerings. However, the 26% revenue drop underscores persistent pricing headwinds that could continue to pressure the company in upcoming quarters.
Morgan Stanley’s price target increase from $7 to $8 reflects cautious optimism—the “Equal Weight” rating suggests the bank sees the stock fairly valued relative to its peers. Investors should note that while the earnings beat is positive, the sustainability of profitability remains uncertain given the competitive landscape and potential for further ASP erosion.
From a sector perspective, Array Technologies stands to benefit from long-term trends in utility-scale solar deployment, but near-term challenges include project delays and supply chain dynamics. The company’s ability to maintain profitability amid lower revenue will be a key focus for market observers in the coming months. No recent earnings data for future quarters is available beyond the Q1 2026 report, and analysts are likely to adjust models based on the surprise profit.
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