Canadian Solar (NASDAQ:CSIQ) Stock Price Down 4.3% After Earnings Miss

Key Points

• Canadian Solar shares fell 4.3% after the company reported a second-quarter loss of $1.40 per share, far worse than the $0.18 consensus estimate. Revenue of $1.21 billion beat expectations but declined 28.7% year over year.
• Energy-storage shipments reached a record 3.7 GWh, exceeding guidance and rising 73% year over year, but third-quarter revenue guidance of $1.3 billion to $1.5 billion was well below analysts’ expectations of about $1.7 billion.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and an $18.02 target price, while Mizuho cut its target to $17 and GLJ Research maintained a “Sell” rating with a $5.58 target.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s stock price was down 4.3% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $13.27 and last traded at $13.38. Approximately 333,869 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 2,718,959 shares. The stock had previously closed at $13.98.

The solar energy provider reported ($1.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.18) by ($1.22). The business had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.17 billion. Canadian Solar had a negative net margin of 1.87% and a negative return on equity of 4.20%. The firm's quarterly revenue was down 28.7% on a year-over-year basis. During the same quarter last year, the firm earned ($0.53) EPS.

Key Headlines Impacting Canadian Solar

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

• Positive Sentiment: Canadian Solar’s second-quarter revenue of $1.21 billion exceeded the $1.17 billion consensus estimate. Energy-storage shipments also reached a record 3.7 GWh, above the company’s 2.8–3.2 GWh guidance, with storage shipments reported as up 73% year over year. Canadian Solar Reports Second Quarter 2026 Results
• Neutral Sentiment: Mizuho lowered its price target from $18 to $17 while maintaining a neutral rating. The revised target still implies substantial potential upside from the recent trading level, but the cut signals limited near-term conviction. Mizuho price target update
• Negative Sentiment: Canadian Solar reported a second-quarter loss of $1.40 per share, substantially worse than expectations and the $0.53 loss recorded a year earlier. Revenue declined 28.7% year over year, and the company posted negative net margin and return on equity. Canadian Solar shares slip after Q2 earnings miss
• Negative Sentiment: Third-quarter revenue guidance of $1.3 billion to $1.5 billion fell well short of the approximately $1.7 billion analyst consensus. Management also warned that ramping up U.S. manufacturing capacity could create additional profit pressure, reinforcing concerns about margins and near-term earnings. Canadian Solar softer Q3 setup
• Negative Sentiment: GLJ Research reaffirmed its sell rating and assigned a $5.58 price target, highlighting the sharply divided analyst outlook. GLJ Research rating update

Wall Street Analysts Forecast Growth

Several equities analysts have commented on CSIQ shares. Citigroup reaffirmed a "neutral" rating on shares of Canadian Solar in a research report on Thursday. Wall Street Zen upgraded Canadian Solar from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 23rd. Freedom Capital lowered shares of Canadian Solar from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 19th. Glj Research restated a "sell" rating and issued a $5.58 price target on shares of Canadian Solar in a report on Thursday. Finally, Mizuho reduced their price target on shares of Canadian Solar from $18.00 to $17.00 and set a "neutral" rating on the stock in a research note on Friday. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $18.02.

Hedge Funds Weigh In On Canadian Solar

A number of hedge funds and other institutional investors have recently made changes to their positions in CSIQ. California State Teachers Retirement System bought a new stake in shares of Canadian Solar in the second quarter valued at about $173,000. Susquehanna Fundamental Investments LLC bought a new position in Canadian Solar during the 2nd quarter worth about $166,000. Hsbc Holdings PLC increased its position in Canadian Solar by 170.5% during the 2nd quarter. Hsbc Holdings PLC now owns 325,847 shares of the solar energy provider's stock valued at $5,220,000 after purchasing an additional 205,397 shares during the period. Wellington Management Group LLP purchased a new position in Canadian Solar during the 2nd quarter valued at about $1,018,259,000. Finally, Kingsview Wealth Management LLC bought a new stake in shares of Canadian Solar in the 2nd quarter valued at about $357,000. Institutional investors own 52.36% of the company's stock.

Canadian Solar Price Performance

The firm's 50-day moving average price is $15.01 and its two-hundred day moving average price is $16.11. The stock has a market cap of $907.82 million, a PE ratio of -5.31 and a beta of 1.52. The company has a current ratio of 1.06, a quick ratio of 0.81 and a debt-to-equity ratio of 0.99.

Canadian Solar Company Profile

Canadian Solar Inc NASDAQ: CSIQ is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world's largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.

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