First Solar (NASDAQ:FSLR) Releases Quarterly Earnings Results, Beats Estimates By $0.63 EPS

Key Points

• First Solar beat earnings expectations: Third-quarter EPS was $5.30, topping the $4.67 consensus, while net sales of $1.23 billion fell short of the $1.29 billion forecast. Gross margin expanded to about 58%, supported by a higher mix of U.S.-produced modules.
• Backlog and domestic manufacturing support growth: The company ended the quarter with a 44 GW backlog valued at roughly $13.5 billion and inaugurated the first phase of its South Carolina facility, which is expected to reach 3.4 GW of annual capacity after expansion.
• Policy and demand uncertainty remain risks: Bookings moderated as customers await clarity on tariffs, Section 232 implementation, FEOC rules, permitting and project economics. First Solar also authorized a $500 million share repurchase program, while analysts maintained a generally positive outlook with a consensus price target of $266.30.

First Solar (NASDAQ:FSLR - Get Free Report) posted its quarterly earnings data on Thursday. The solar cell manufacturer reported $5.30 earnings per share for the quarter, topping the consensus estimate of $4.67 by $0.63, FiscalAI reports. First Solar had a return on equity of 18.02% and a net margin of 32.47%. The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.29 billion.

Here are the key takeaways from First Solar's conference call:

• Strong third-quarter financial performance: Net sales were approximately $1.2 billion, gross margin expanded to about 58%, adjusted EBITDA reached $744 million, and diluted EPS rose to $5.30, supported by a higher mix of U.S.-produced modules.
• First Solar ended the quarter with a substantial 44 GW backlog valued at approximately $13.5 billion and is pursuing higher pricing and stronger contractual protections as post-Section 232 price discovery develops.
• The company believes it is structurally positioned to benefit from U.S. policies favoring domestic, non-Chinese-dependent solar manufacturing, while AI-related electricity demand, data-center expansion, and electrification support long-term demand. The board also authorized a $500 million share repurchase program.
• Bookings have moderated as customers focus on near-term projects and await clarity on Section 232 implementation, FEOC rules, tariffs, permitting, and project economics. First Solar also lowered the 2026 outlook for certain India, international Series 6, and U.S. finishing volumes, while its Malaysia facility faces a binary full-operation-or-shutdown decision in the first half of 2027.

First Solar Stock Up 0.3%

Shares of FSLR stock traded up $0.59 on Thursday, reaching $176.89. The company had a trading volume of 2,154,091 shares, compared to its average volume of 2,348,412. The stock has a market capitalization of $19.01 billion, a PE ratio of 10.91, a price-to-earnings-growth ratio of 0.47 and a beta of 1.80. The business's 50-day moving average is $190.42 and its 200 day moving average is $216.82. First Solar has a one year low of $165.86 and a one year high of $320.95.

Wall Street Analysts Forecast Growth

FSLR has been the topic of several analyst reports. Wells Fargo & Company upped their price target on shares of First Solar from $300.00 to $313.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. Susquehanna lifted their price objective on shares of First Solar from $250.00 to $270.00 and gave the company a "positive" rating in a research report on Friday, July 10th. Barclays lowered their price objective on shares of First Solar from $279.00 to $259.00 and set an "overweight" rating on the stock in a research note on Thursday, October 15th. HSBC upgraded shares of First Solar from a "hold" rating to a "buy" rating in a research note on Friday, August 7th. Finally, Truist Financial raised First Solar from a "hold" rating to a "buy" rating and raised their price objective for the company from $229.00 to $270.00 in a research report on Monday, October 12th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, First Solar has an average rating of "Moderate Buy" and a consensus price target of $266.30.

Insider Transactions at First Solar

In related news, EVP Samantha Sloan sold 127 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $222.95, for a total transaction of $28,314.65. Following the sale, the executive vice president owned 2,018 shares of the company's stock, valued at $449,913.10. This trade represents a 5.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael Koralewski sold 7,000 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $221.51, for a total value of $1,550,570.00. Following the sale, the insider owned 7,642 shares in the company, valued at approximately $1,692,779.42. This trade represents a 47.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 16,681 shares of company stock worth $3,756,286. Insiders own 0.39% of the company's stock.

Key Headlines Impacting First Solar

Here are the key news stories impacting First Solar this week:

• Positive Sentiment: Strong profit beat and buyback support: First Solar reported third-quarter EPS of $5.30, ahead of the $4.67 consensus estimate, with a 32.47% net margin. The company also launched a share-repurchase program, which could provide additional support for the stock and signal management confidence. First Solar Posts Strong Q3 Results, Launches Buyback Plan
• Positive Sentiment: U.S. manufacturing expansion: First Solar inaugurated the first phase of its South Carolina facility. The approximately $330 million project is expected to reach 3.4 gigawatts of annual capacity after the second phase is completed in mid-2027, strengthening domestic production and potentially supporting long-term growth. First Solar Inaugurates First Phase of South Carolina Production Facility
• Positive Sentiment: Higher analyst valuation: Guggenheim raised its price target to $299 from $282 before the earnings release, citing attractive valuation and expectations for solid earnings. First Solar Rises as Guggenheim Raises Target
• Neutral Sentiment: Revenue miss tempers the earnings beat: Quarterly sales of $1.23 billion were below the $1.29 billion analyst forecast, making the results less unequivocally positive despite the sizable EPS outperformance. First Solar Press Release
• Negative Sentiment: Interest-rate and demand risks persist: Ariel Global Fund highlighted elevated interest rates and geopolitical uncertainty as pressures on First Solar, despite its strong margins and backlog. Weak guidance from residential-solar peer Enphase also weighed on broader solar sentiment, although First Solar is more focused on utility-scale projects. Ariel Global Fund Discusses First Solar

First Solar Company Profile

First Solar, Inc is a vertically integrated solar technology and manufacturing company that designs, manufactures and sells photovoltaic (PV) solar modules. Its modules use advanced thin-film semiconductor technology based on cadmium telluride (CdTe), rather than the crystalline-silicon technology used by most solar manufacturers. The company serves utility-scale solar developers, commercial and industrial customers, and other large-scale energy users.

Founded in 1999 and headquartered in Tempe, Arizona, First Solar operates research and development, manufacturing and recycling facilities in the United States and internationally.

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