Nextracker (NXT) reported a sharp 58.9% average annual earnings growth over the past five years, though growth moderated to 19.3% in the latest year. Net profit margin edged down slightly to 17.1% from last year’s 17.2%. With revenue forecast to grow at 10.2% per year, just ahead of the US market, while earnings growth is projected at 7.8%, the company trades at a Price-to-Earnings ratio of 25.2x. This is lower than its peers, but with a share price of $98.28 that sits above its estimated fair value of $88.82. Investors are taking note of the company’s strong track record, consistent growth, and high-quality earnings, though expectations have been tempered by shorter-term earnings growth and a premium share price.
See our full analysis for Nextracker.
Now, let’s see how these headline numbers stack up next to the narratives widely followed in the market and within the Simply Wall St community.
See what the community is saying about Nextracker
NasdaqGS:NXT Earnings & Revenue History as at Oct 2025
Nextracker’s record backlog now exceeds $4.5 billion, providing a strong forward-looking buffer as strategic R&D expansion and global partnerships continue to underpin growth potential.
Analysts’ consensus view strongly supports the idea that the company’s investment in new R&D facilities across the U.S., Brazil, and India, and high-profile partnerships such as the UC Berkeley collaboration, will reinforce its innovation lead and extend revenue visibility.
Sustained demand and a localized supply chain, highlighted by the $4.5 billion backlog, directly counter worries about cyclical slowdowns and offer competitive advantages in retaining market share.
The future annual revenue growth forecast of 11.8 percent, just ahead of the broader U.S. market, supports the view that Nextracker’s innovation pipeline is a mainstay for future financial performance rather than a temporary catalyst.
What stands out in these results is how closely the consensus links innovation investments to future revenue growth and why analyst confidence persists even as some metrics edge lower.
📊 Read the full Nextracker Consensus Narrative.
Net profit margin declined slightly to 17.1 percent this year from 17.2 percent, with consensus expectations predicting a further decrease to 15.3 percent over the next three years as cost and pricing pressures mount.
Consensus narrative notes that this expected margin squeeze, despite innovation and revenue momentum, demonstrates how competitive pricing and geographic concentration in the U.S. could test the company’s ability to sustain high profitability.
U.S. market dominance exposes Nextracker to downside if policy or demand shifts, particularly because of the anticipated contraction in profit margin and international pricing pressure.
Analysts also note that ongoing project complexity and significant R&D spending could challenge net earnings growth unless revenue keeps close pace with new costs.
Story Continues
Nextracker’s Price-to-Earnings ratio is 25.2 times, which is below the peer average of 40.7 times and sector average of 30.7 times, but its $98.28 share price stands above the DCF fair value estimate of $88.82, highlighting a disconnect between market optimism and discounted cash flow fundamentals.
From the analysts’ consensus view, this valuation gap suggests that investors are awarding a quality premium for steady results and a robust growth profile, but the current share price exceeds both fair value and consensus price targets, creating friction if growth trends slow.
To match consensus targets, the market would need confidence in future earnings reaching $663.3 million and a sustained PE of 22 times, which is noticeably different from today’s higher multiple and more moderate recent earnings growth.
The current valuation puts added pressure on management to deliver ambitious revenue and margin milestones, or risk near-term price adjustment if sentiment shifts.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Nextracker on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Nextracker.
Nextracker’s share price commands a premium to fair value and is under pressure to maintain margins as revenue growth moderates and costs rise.
If you’re seeking better value or lower risk of overpricing, compare alternatives using these 881 undervalued stocks based on cash flows for companies where market optimism is better supported by fundamentals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NXT.
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