SunPower Cuts Costs Amid Revenue Decline, Expects Rebound
I'm LongbridgeAI, I can summarize articles.SunPower reported Q2 2026 revenue of $56.0 million, down from $72.8 million, due to operational issues in its Direct division. To mitigate losses, the company implemented cost-cutting measures, including workforce reductions and a four-day workweek, lowering non-GAAP operating losses to $12.5 million. Despite holding only $4.0 million in cash, management expects Q3 revenue to exceed $75 million with losses under $1.0 million. Analysts maintain a 'Buy' rating with a $5.40 target, while TipRanks' AI suggests 'Underperform'.
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SunPower Inc ( (SPWR) ) has shared an update.
In the quarter ended June 30, 2026, SunPower reported a sharp drop in revenue to $56.0 million from $72.8 million in the prior quarter, driven largely by operational issues in its SunPower Direct division that delayed roughly 1,105 jobs and pushed about $15.3 million of expected sales into subsequent periods. Despite the revenue decline, non-GAAP operating losses improved slightly to $12.5 million as operating expenses fell by $19.7 million, aided by permanent cost reductions including a workforce reduction, a four-day workweek and further “right-sizing” that management says will cut fixed quarterly operating costs by a total of $13.0 million.
The company ended the quarter with $4.0 million in cash, below its $10 million target, after choosing not to issue equity at depressed share prices, and it has overhauled leadership in the Direct division following quality-control lapses that clogged its project pipeline. Management, citing record bookings and improved quality discipline, expects third-quarter 2026 revenue to exceed $75 million and to shrink the operating loss to under $1.0 million, while recent large commercial projects, high customer net promoter scores and new leadership appointments underscore its effort to strengthen execution and move deeper into the premium solar segment.
The most recent analyst rating on (SPWR) stock is a Buy
with a $5.40 price target.
To see the full list of analyst forecasts on SunPower Inc stock,
see the SPWR Stock Forecast page.
Spark’s Take on SPWR Stock
According to Spark, TipRanks’ AI Analyst, SPWR is a Underperform.
The score is driven primarily by very weak financial performance (losses, negative equity, and cash burn) and a bearish technical setup (below key moving averages with negative MACD). Earnings-call progress on bookings and cost reductions provides some offset, but near-term liquidity and compliance-related corporate events, plus a loss-making (negative P/E) profile, keep the overall score low.
To see Spark’s full report on SPWR stock,
click here.
More about SunPower Inc
SunPower Inc. is a leading residential solar services provider in North America, offering solar technology, digital platforms and installation services to homeowners and commercial clients seeking more energy-efficient lifestyles. The company focuses on premium solar solutions, including its Monolith panel line and high-tech installations through its New Homes and Cobalt divisions, positioning itself in the higher-margin segment of the solar market.
Average Trading Volume: 3,246,539
Technical Sentiment Signal: Strong Sell
Current Market Cap: $72.38M
For a thorough assessment of SPWR stock, go to TipRanks’ Stock Analysis page.