First Solar Posts $571 Million in Net Income and Cuts 2026 Sales Outlook
Key Facts
First Solar said on October 29 that net sales were $1.23 billion in the third quarter of 2026, down 23% from the same period a year earlier, attributing the decline mainly to lower volume of modules sold to third parties. Net income, by contrast, rose to $571 million, or $5.30 per diluted share, compared with $456 million and $4.24 per share in the third quarter of 2025. Adjusted earnings before interest, taxes, depreciation and amortization also rose to $744 million from $671 million a year earlier. The results came alongside a reduction in the company's financial outlook for the year and an announcement of a share buyback program. The company's shares closed at $176.3 on October 28, the day before the results were announced.
A comparison with analyst estimates showed a split between profitability and revenue: adjusted earnings per share of $5.30 exceeded their estimate of $4.67, while revenue of $1.23 billion came in below the consensus of $1.28 billion. Investing.com reported that the stock fell 5% in after-hours trading following the results and guidance. The same report said the earnings-per-share beat did not prevent the revenue miss and guidance from weighing on the stock. The stock closed at $176.89 on October 29, according to another report published by Investing.com. That day's closing price does not represent the after-hours trading move reported by the publication.
First Solar cut its 2026 net sales outlook to a range of $4.6 billion to $4.9 billion, from the previous range of $4.9 billion to $5.2 billion. It also lowered its estimate for module sales volume during the year to 16–17 gigawatts, from 17–18.2 gigawatts previously. The company reduced its range for adjusted earnings before interest, taxes, depreciation and amortization to $2.55–$2.75 billion, compared with a previous forecast of $2.6–$2.8 billion. The revisions put estimates for annual activity below previous expectations, alongside a year-over-year decline in quarterly sales. Second-quarter sales were $1.06 billion, down 4% year over year, due to lower revenue related to customer contract terminations, partly offset by higher volume of modules sold to third parties.
As for orders, contracted sales totaled 44.0 gigawatts on September 30, 2026. The company had ended the second quarter with approximately 45.1 gigawatts of contracted orders scheduled for delivery through 2030, after cumulative module sales exceeded 100 gigawatts globally. Net cash fell to $1.5 billion on September 30, from $2.4 billion on December 31, 2025. The company attributed the decline to working capital requirements and capital spending, partly offset by receipts from 45X credits and IEEPA tariff refunds. The board authorized a share buyback program of up to $500 million, effective immediately and with no specified expiration date.
For the fourth quarter, the company expects module sales of 4.3 to 5.3 gigawatts, including 3.4–4.3 gigawatts from its U.S. facilities. It also expects adjusted earnings before interest, taxes, depreciation and amortization for the quarter to range from $643 million to $843 million. CEO Mark Widmar linked the company's performance backdrop to U.S. industrial policy, saying that "Section 232 represents a structural shift in the United States' approach to solar manufacturing." He added that the company sees itself as well positioned to benefit from this change. The third-quarter results call was scheduled for October 29 at 4:30 p.m. Eastern Time, the same day the results were announced.