First Solar, Inc.

🇺🇸NASDAQ Global Select
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First Solar, Inc. stock analysis FSLR overview
Somewhat Bullish +50

First Solar's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

First Solar reported Q1 2026 earnings of $3.22 per share, surpassing the consensus estimate of $2.87 by 12.1%.

Net income jumped 65.1% year-over-year to $3.22 per share from $1.95 in the prior quarter.

First-quarter sales reached $1.04 billion, missing estimates slightly but growing 23.6% compared to $0.84 billion last year.

Gross profit increased significantly by 41.2% to $486.1 million, though operating expenses rose 14.3% to $140.8 million.

Operating income grew to $345.3 million from $221.2 million in the year-ago quarter.

The company holds $2.36 billion in cash and cash equivalents as of March 31, 2026, down from $2.8 billion at the end of 2025.

Long-term debt decreased to $237.2 million compared to $282.6 million in December 2025.

Net cash provided by operating activities was $214.9 million in Q1 2026 versus $608 million in the same period last year.

For the full year, First Solar projects sales between $4.9 billion and $5.2 billion, slightly below the consensus estimate of $5.07 billion.

Gross profit guidance is set at $2.4-$2.6 billion with operating expenses expected to fall in the $610-$635 million range.

The company anticipates module shipments to total 17-18.2 gigawatts for the current year.

First Solar estimates capital expenditure for 2026 will range from $0.8 billion to $1 billion.

Zacks Investment Research currently assigns First Solar a Rank #3 (Hold) status based on its recent performance and outlook.

Peer Enphase Energy reported Q1 earnings of 47 cents per share, missing last year's figure by 30.9% but beating consensus estimates.

Enphase revenues declined 28.6% year-over-year to $282.9 million, slightly missing analyst expectations of $284 million.

SolarEdge is scheduled to release its Q1 2026 results on May 6 before the market opens.

Analysts expect SolarEdge to show a loss of 23 cents per share in Q1 2026 with sales pegged at $303.4 million.

Canadian Solar will report Q1 2026 earnings on May 14, preceding the market open.

Consensus estimates for Canadian Solar project a Q1 2026 loss of $1.08 per share and sales of $947.6 million.

Bullish Signals
  • First Solar beat analyst estimates by reporting Q1 earnings of $3.22 per share, compared to the Zacks Consensus Estimate of $2.87.
  • The company's bottom line surged 65.1% from the prior-year quarter, increasing from $1.95 to $3.22.
  • Gross profit rose significantly by 41.2% year over year to $486.1 million, demonstrating strong profitability growth.
  • Operating income nearly doubled to $345.3 million from $221.2 million in the year-ago quarter.
  • First Solar holds a robust balance sheet with $2.36 billion in cash and cash equivalents as of March 31, 2026.
  • The company successfully reduced its long-term debt from $282.6 million to $237.2 million year over year.
  • Management projects module shipments of 17-18.2 gigawatts for the upcoming period, indicating strong demand visibility.
  • Full-year sales guidance is expected to be between $4.9 billion and $5.2 billion, with consensus estimates favorably placed within this range.
Risk Factors
  • First Solar's Q1 net sales of $1.04 billion missed the Zacks Consensus Estimate by 0.1%, indicating weaker-than-expected market performance.
  • Cash and cash equivalents declined significantly to $2.36 billion from $2.8 billion a year earlier, raising concerns about liquidity runway if revenue growth slows.
  • Net cash provided by operating activities dropped sharply to $214.9 million compared with $608 million in the prior-year quarter, suggesting deteriorating cash flow generation.
  • Long-term debt increased slightly to $237.2 million from $282.6 million a year ago, adding to the company's balance sheet obligations despite lower operating leverage.
  • Consensus estimates for other peers like SolarEdge (SEDG) and Canadian Solar (CSIQ) predict Q1 losses, highlighting industry-wide profitability concerns that could pressure First Solar's stock multiple.
  • FSLR expects sales guidance of $4.9-$5.2 billion, which is below the Zacks Consensus Estimate of $5.07 billion, signaling potential market weakness relative to analyst expectations.
Full Analysis
First Solar Inc. reported first-quarter 2026 earnings of $3.22 per share, surpassing the Zacks Consensus Estimate of $2.87 by 12.1%. The bottom line saw a significant increase of 65.1% compared to the year-ago quarter's $1.95. While net sales of $1.04 billion slightly missed the consensus estimate, they represented a 23.6% rise from $0.84 billion in the prior-year quarter. Gross profit expanded by 41.2% to $486.1 million, though total operating expenses increased 14.3% year over year to $140.8 million, resulting in an operating income of $345.3 million versus $221.2 million the previous year. As of March 31, 2026, the company held $2.36 billion in cash and equivalents with long-term debt at $237.2 million. Guidance for the full year indicates sales will range between $4.9 and $5.2 billion, slightly below the consensus estimate of $5.07 billion, though module shipments are projected to hit 17-18.2 gigawatts. Gross profit is expected to fall in a band of $2.4-$2.6 billion with operating expenses anticipated between $610 and $635 million, while capital expenditure for 2026 is forecasted at $0.8-$1 billion. The article also notes that competitors Enphase Energy reported adjusted earnings of 47 cents per share despite a 28.6% revenue decline, and provides upcoming earnings dates and consensus estimates for SolarEdge Technologies and Canadian Solar Inc. This report highlights First Solar's strong profitability and operational efficiency in the context of broader solar sector performance, noting the company maintains a Zacks Rank #3 (Hold) rating. The detailed financial metrics, including cash position, debt levels, and shipment projections, provide substantial insight into the company's strategic outlook for the remainder of 2026, even as guidance on total sales suggests a conservative outlook relative to market expectations.