Array (NASDAQ:ARRY) Posts Better-Than-Expected Sales In Q2 CY2026 But Quarterly Revenue Guidance Misses Expectations
Solar tracking systems manufacturer Array (NASDAQ:ARRY) reported Q2 CY2026 results beating Wall Street’s revenue expectations, but sales fell by 5.6% year on year to $342.1 million. On the other hand, next quarter’s revenue guidance of $320 million was less impressive, coming in 32% below analysts’ estimates. Its non-GAAP profit of $0.24 per share was significantly above analysts’ consensus estimates.
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Array (ARRY) Q2 CY2026 Highlights:
- Revenue: $342.1 million vs analyst estimates of $313.8 million (5.6% year-on-year decline, 9% beat)
- Adjusted EPS: $0.24 vs analyst estimates of $0.12 (significant beat)
- Adjusted EBITDA: $30.76 million vs analyst estimates of $44.49 million (9% margin, 30.9% miss)
- The company reconfirmed its revenue guidance for the full year of $1.45 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $0.72 at the midpoint, a 2.1% increase
- EBITDA guidance for the full year is $220 million at the midpoint, below analyst estimates of $221.8 million
- Operating Margin: 10.2%, down from 12.8% in the same quarter last year
- Free Cash Flow Margin: 33.2%, up from 12.1% in the same quarter last year
- Market Capitalization: $807.6 million
“ARRAY delivered a strong second quarter while achieving a significant company milestone, surpassing 100 gigawatts of cumulative tracker product shipments since our founding. For the third consecutive quarter, we achieved a record orderbook of $2.5 billion, reflecting continued share gains and strong execution. During the quarter, we advanced our innovation strategy with the formal launch of DuraTrack D2S and our next-generation OmniTrack product offerings. We continued to build on that momentum in July with the announcement of our new 60° tracker capabilities and the launch of the ARRAY Atlas™ suite of foundation-to-tracker solutions. Our pending acquisition of Affordable Wire Management (AWM)(2), will further advance our balance of system strategy by adding high-margin cable management and safety products. We remain focused on expanding our ability to provide a more integrated, technically interoperable solution set for utility-scale solar customers,” said Chief Executive Officer, Kevin G. Hostetler.
Company Overview
Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Array’s 9.2% annualized revenue growth over the last five years was solid. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Array’s recent performance shows its demand has slowed as its annualized revenue growth of 3.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Array’s revenue fell by 5.6% year on year to $342.1 million but beat Wall Street’s estimates by 9%. Company management is currently guiding for a 18.7% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 30.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will catalyze better top-line performance.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Array was roughly breakeven when averaging the last five years of quarterly operating profits, one of the worst outcomes in the industrials sector. This result isn’t too surprising given its low gross margin as a starting point.
On the plus side, Array’s operating margin rose by 1.8 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, Array generated an operating margin profit margin of 10.2%, down 2.6 percentage points year on year. Conversely, its gross margin actually rose, so we can assume its recent inefficiencies were driven by increased operating expenses like marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Array, its EPS declined by 3.1% annually over the last five years while its revenue grew by 9.2%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.
We can take a deeper look into Array’s earnings to better understand the drivers of its performance. A five-year view shows Array has diluted its shareholders, growing its share count by 22.6%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Array, its two-year annual EPS declines of 6.9% show it’s continued to underperform. These results were bad no matter how you slice the data.
In Q2, Array reported adjusted EPS of $0.24, down from $0.25 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Array’s full-year EPS to grow 32.6% from $0.59 to $0.78.
Key Takeaways from Array’s Q2 Results
It was good to see Array beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 2.1% to $5.45 immediately after reporting.
So should you invest in Array right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).