A Look At Array Technologies (ARRY) Valuation After Earnings Beat And New Peru Solar Contract

Array Technologies (ARRY) has been drawing fresh attention after its first quarter 2026 earnings topped expectations, alongside new international wins such as supplying trackers to Statkraft’s high altitude Lupi solar project in Peru.

See our latest analysis for Array Technologies.

The share price has been under pressure despite the Q1 profit surprise and a record US$2.4b order book. The 30 day share price return of 2.94% compares with a 90 day share price decline of 31.11% and a 3 year total shareholder return decline of 66.57%, which suggests that recent enthusiasm is still contending with a weaker long term track record.

If Array’s recent moves in utility scale solar have your attention, it may be worth broadening your watchlist to see what else is shaping the energy transition through 35 power grid technology and infrastructure stocks

With the stock at US$8.06, sitting above some recent analyst targets but following a steep multi year decline, the key question is whether Array is being underestimated or whether the market is already pricing in any future recovery.

Most Popular Narrative: 43.6% Undervalued

Array’s last close at $8.06 sits well below the narrative fair value of $14.29, which frames the recent rebound as only a partial rerating so far.

ARRY Array Technologies is described as a high-potential growth investment in the renewable energy sector, supported by global solar demand and existing policies. However, short-term operational and macroeconomic risks require careful consideration. Strategic investors with a medium- to long-term horizon and a tolerance for volatility may view ARRY as a potentially attractive opportunity, provided they closely monitor key drivers and remain disciplined in their approach.

Read the complete narrative.

Curious what sits behind that view of future earnings and margins. The narrative focuses on sector conditions, efficiency improvements and a richer profit profile. Investors may want to examine which building blocks are used to justify that valuation gap.

Result: Fair Value of $14.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on policy support and project timing, and any cuts to incentives or renewed delays in utility scale orders could quickly challenge that perception of undervaluation.

Find out about the key risks to this Array Technologies narrative.

Another View: DCF Says Slightly Overvalued

The user narrative points to a fair value of $14.29, but our DCF model presents a more constrained view. On that measure, Array at $8.06 sits just above an estimated value of $7.56, so instead of a wide margin of safety you are looking at a small premium. Consider which perspective better aligns with your own required hurdle rate.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Array Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 54 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed messages in the data so far. If that tension between risk and reward interests you, consider acting promptly and weigh up the 2 key rewards and 1 important warning sign

Looking for more investment ideas?

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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.

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