Executive Summary

Q1 FY26 delivered top-line and EPS beats with revenue $864.3M (+20% YoY) and adjusted diluted EPS $1.16; GAAP diluted EPS was $1.04. Full-year FY26 guidance was raised across revenue, GAAP EPS, adjusted EBITDA, and adjusted EPS, supported by a record backlog over $4.75B .
Revenue and adjusted EPS exceeded S&P Global consensus (Revenue: $864.3M vs $841.8M; Primary EPS: $1.16 vs $1.02) – a clean beat, aided by steady pricing, strong execution, and 45X credits (≈150 bps gross margin benefit from historical shipments) .
Management highlighted accelerating platform expansion (eBOS, foundations, advanced module frames) and launched an AI/robotics initiative with three acquisitions and a new Chief AI & Robotics Officer, positioning for recurring revenue opportunities and life-cycle services .
Near-term stock catalysts: guidance raise, AI/robotics expansion, domestic content leadership and backlog durability amid evolving U.S. policy/safe harbor requirements; management emphasized “flight to quality,” domestic supply chain flexibility, and robust on-time delivery .

What Went Well and What Went Wrong

What Went Well

Revenue/EPS beat and raised FY26 outlook; backlog over $4.75B with international revenue growth +27% YoY. “Nextracker delivered another strong quarter across all key financial metrics and saw continued market share momentum” (CEO) .
Product adoption momentum: NX Horizon Hail Pro and XTR series sales up 43% and 22% QoQ; foundations (NX Earth Truss) cumulative sales >1 GW; TrueCapture bookings strong .
Strategic expansion: AI/robotics acquisitions (OnSight, SenseHawk IP, Amir Robotics) and appointment of Dr. Francesco Borrelli to lead AI/robotics; integration with TrueCapture and control systems to reduce O&M, improve reliability (President/CEO) .

What Went Wrong

Margin compression QoQ: adjusted EBITDA margin fell to 24.9% (Q1) from 26.2% (Q4) and GAAP gross margin declined to 32.6% from 33.1%, partly mix/opex and 45X cadence normalization .
Operating cash flow down YoY: $81.3M vs $120.8M in Q1 FY25, reflecting growth investments in capex and working capital (CFO) .
Policy/regulatory uncertainty (Treasury safe harbor updates, Interior permitting review, Section 232): while management sees risk as manageable with high safe-harbored backlog, timing remains a watch item (Q&A) .

Financial Results

Headline Metrics (GAAP and Non-GAAP)

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Revenue ($USD Millions)	$679.4	$924.3	$864.3
GAAP Diluted EPS ($)	$0.79	$1.05	$1.04
Adjusted Diluted EPS ($)	$1.03	$1.29	$1.16
Gross Margin (%)	35.5%	33.1%	32.6%
GAAP Operating Margin (%)	22.1%	21.1%	21.5%
Adjusted EBITDA ($USD Millions)	$186.4	$242.5	$214.8
Adjusted EBITDA Margin (%)	27.4%	26.2%	24.9%

Q1 FY26 vs S&P Global Consensus

Metric	Consensus Estimate	Actual	Surprise
Revenue ($USD Millions)	$841.8*	$864.3	+$22.5 (+2.7%)
Primary EPS ($)	$1.02*	$1.16 (Adjusted Diluted EPS)	+$0.14 (+13.4%)
EBITDA ($USD Millions)	$197.3*	$215.0 (Adjusted EBITDA)	+$17.7 (+9.0%)

Values retrieved from S&P Global.*

KPIs and Operating Metrics

KPI	Q1 FY26 Value
Backlog	>$4.75B
Operating Cash Flow	$81.3M
Cash & Equivalents	$743.4M; no debt
45X Credits (Q1/Q4 FY25/Q1 FY25)	$93M / $75M / $47M
International Revenue Growth YoY	+27%
NX Horizon Hail Pro Sales QoQ	+43%
NX Horizon-XTR Sales QoQ	+22%
NX Earth Truss Cumulative Sales	>1 GW

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	FY26	$3.2–$3.4	$3.2–$3.45	Raised
GAAP Net Income ($M)	FY26	$445–$503	$496–$543	Raised
GAAP Diluted EPS ($)	FY26	$2.91–$3.29	$3.24–$3.55	Raised
Adjusted EBITDA ($M)	FY26	$700–$775	$750–$810	Raised
Adjusted Diluted EPS ($)	FY26	$3.65–$4.03	$3.96–$4.27	Raised

Management noted the FY26 outlook assumptions include current U.S. policy environment and consistent permitting timelines; monitoring potential safe harbor updates/regulatory actions .

Earnings Call Themes & Trends

Topic	Q3 FY25 (Previous -2)	Q4 FY25 (Previous -1)	Q1 FY26 (Current)	Trend
AI/Technology Initiatives	Expanded R&D footprint; UC Berkeley CAL‑NEXT; India/Brazil centers	Launched eBOS via Bentek acquisition	New AI/robotics business; OnSight, SenseHawk IP, Amir Robotics; Chief AI & Robotics Officer appointed	Accelerating platform expansion
Supply Chain/Domestic Content	Shipped first 100% U.S. domestic content trackers	Delivered 100% domestic content tracker; >25 U.S. facilities	>25 U.S. manufacturing facilities; flexibility to serve safe harbor demand	Strengthening
Policy/Safe Harbor	Reaffirmed outlook; no specific policy items	FY26 outlook established	OBBBA reconciliation bill; “vast majority” of U.S. backlog safe-harbored; monitoring Treasury guidance	Improving clarity, timing watch
Product Performance	Hail Pro/XTR deployed at scale	>9 GW Hail Pro booked; XTR ~17 GW sold FY25	Hail Pro/XTR sales +43%/+22% QoQ; TrueCapture record bookings	Rising adoption
Regional Trends	Expanded to >40 countries; 90+ facilities	Global momentum, >40 countries	#1 in Europe; record Europe bookings; JV in Saudi Arabia (in Q2)	Broadening globally
Regulatory/Legal	—	—	Section 232 tariff investigation feedback; panel compatibility breadth	Watchful

Management Commentary

CEO: “We delivered robust financial results… Our backlog hit a new record of over $4.75 billion… We announced three strategic acquisitions in robotics and AI… integrate directly with our control and monitoring systems to help customers optimize performance, reduce O&M costs, and lower risk” .
President: “Q1 was another great quarter… strong demand for core NX Horizon trackers and TrueCapture… HALE Pro and XTR seeing rapid adoption… foundation products gaining momentum… appointing Dr. Borrelli to lead AI and robotics” .
CFO: “Adjusted EBITDA $215M (+23% YoY); adjusted gross margin 33%… ~150 bps benefit from 45X related to historical shipments… gross margins in low 30s; opex 9–10%; operating margins low 20s… $743M cash and no debt” .

Q&A Highlights

Backlog/Bookings: Backlog grew QoQ for the 15th consecutive quarter; pipeline growing; bookings implied near ~$1B but undisclosed (analyst math), with normal schedule pull‑ins/push‑outs .
45X Credits: ~150 bps gross margin benefit in Q1 tied to vendor reconciliations; forward cadence ~9–10% of revenue; higher U.S.-made product delivery offsets higher costs .
Safe Harbor/Policy: “Very high” percent of U.S. backlog safe-harbored; industry views risk as manageable; clarity expected from Treasury guidance .
AI/Robotics Monetization: Moving toward “robot as a service” recurring model; integration with TrueCapture and digital twin; commercial availability rolling out in the U.S. .
eBOS Expansion: Two product lines covering 100% of current use cases; adding new products; scaling to match NX volume .

Estimates Context

Q1 FY26 beats: Revenue $864.3M vs $841.8M consensus; Primary EPS $1.16 vs $1.02; adjusted EBITDA $215.0M vs $197.3M. The beats reflect steady pricing, backlog conversion, efficiency, and a one‑time 45X vendor reconciliation tailwind to gross margin (~$10M, ~150 bps) . Values retrieved from S&P Global.*
FY26 consensus: Revenue ~$3.45B, Primary EPS ~$4.28, EBITDA ~$814M – aligned with the raised company outlook range, suggesting sell-side upward revisions likely following Q1 . Values retrieved from S&P Global.*

Key Takeaways for Investors

Beat-and-raise quarter with durable backlog and broadened platform – supports near-term estimate revisions and positive sentiment .
Margin framework intact (low-30s gross, 9–10% opex, low-20s operating) with 45X tailwinds normalizing; watch mix and opex vs growth initiatives .
Platform expansion (eBOS, foundations, advanced module frames, AI/robotics) introduces incremental TAM and potential recurring revenue, reinforcing multiple drivers beyond trackers .
Domestic content leadership and supply chain flexibility are strategic moats amidst evolving U.S. policy/safe harbor requirements; backlog is predominantly safe-harbored, mitigating timing risk .
Cash-rich, no-debt balance sheet funds organic/inorganic growth while preserving resilience; OCF variability tied to working capital/capex should normalize across FY26 .
Near-term catalysts: Treasury safe harbor guidance, continued product attach (TrueCapture, eBOS, foundations), AI/robotics commercial rollouts and Capital Markets Day disclosures (already reinforced rebrand/targets) .
Trading implication: Estimate upgrades and narrative around integrated platform/recurring AI-robotics services could support multiple expansion; monitor regulatory timing and 45X run-rate normalization.

Citations: Earnings press release and schedules ; Q1 call transcript –; Additional Q1 press releases – –; Prior quarters for trend analysis – –; Q2 FY26 for context –; Rebrand 8-K –.

Nextracker Inc. (NXT)·Q1 2026 Earnings Summary