JPMorgan has revised its price target on Nextpower (NASDAQ:NXT) upward to $125.00 from $110.00 while keeping an Overweight rating following the company’s fiscal third-quarter results, which the bank described as notably strong. The stock was trading at $105.91 at the time of the report, having risen 167.31% over the trailing year and trading close to its 52-week high of $112.74.
Nextpower reported quarterly financials that topped market expectations, delivering an earnings per share of $1.10 versus the $0.70 analysts had forecast. Revenue for the quarter came in at $909 million, ahead of the $745.13 million projection. The company said its book-to-bill ratio exceeded 1.0 and reported a record backlog, driven by heightened demand in the United States, record bookings across Europe, and entry into two additional countries.
JPMorgan noted the company raised its fiscal year 2026 guidance. However, the bank pointed out that the mid-point of the new guidance increased by slightly less than the magnitude of the fiscal third-quarter beat, suggesting some portion of revenue may have been pulled forward into the latest quarter.
On the commercial front, Nextpower announced a 2.25 GW order in the Middle East and North Africa region. JPMorgan characterized that contract as an encouraging signal for progress at the recently formed Nextpower Arabia joint venture. The company also authorized a $500 million share buyback program - its first repurchase authorization since going public three years ago.
Beyond the headline numbers, Nextpower’s balance sheet strength was highlighted. InvestingPro has assigned the company an overall health score of "GREAT," noting that Nextpower holds more cash than debt on its balance sheet. Despite the robust results and the upbeat guidance revision, the company’s stock experienced a slight decline in aftermarket trading following the earnings release.
Outlook and market reaction
The combination of earnings and revenue beats, record backlog and the large MENA order contributed to JPMorgan's decision to lift its price target. The $500 million buyback authorization also marks a notable capital allocation move for the company, coming three years after its initial public offering. Investors and analysts will be watching subsequent quarters to see whether the elevated near-term performance reflects sustainable demand growth or a timing shift of revenue into the most recent quarter.
Context for investors
- Nextpower’s reported EPS and revenue exceeded consensus estimates for fiscal third quarter 2026.
- The company emphasized a book-to-bill ratio greater than 1.0 and a record backlog, with geographic strength in the U.S. and Europe and expansion into two new countries.
- Key corporate actions include a 2.25 GW order in MENA linked to Nextpower Arabia and a $500 million share repurchase program.
These developments have led analysts and market participants to reassess Nextpower’s near-term prospects, while also focusing attention on the timing of revenue recognition and the company’s ability to convert backlog into future deliveries and cash flow.