Canada's Canadian Solar Q2 revenue beats, helped by strength in energy storage shipments

Canadian Solar

27/08/2026 11:10

Overview
Canada solar technology firm's Q2 revenue rose and beat analyst expectations
Company posted Q2 net loss as gross margin declined from prior year
Q2 energy storage shipments exceeded guidance, while solar module shipments fell yr/yr

Outlook
Canadian Solar sees Q3 revenue between $1.3 bln and $1.5 bln
Company expects Q3 gross margin of 13.5% to 15.5%
Canadian Solar reiterates 2026 U.S. module shipment guidance of 6.5 GW to 7.0 GW

Result Drivers
ENERGY STORAGE SHIPMENTS - Battery energy storage shipments exceeded guidance, serving utility-scale projects across North America, EMEA, Asia Pacific and Latin America
GROSS MARGIN DECLINE - Sequential decrease in gross margin was primarily driven by absence of tariff refund recognized in prior period and normalized energy storage margins, per CFO Xinbo Zhu
PROJECT SALES DEFERRAL - Recurrent Energy's quarterly performance was light, primarily due to the deferral of planned project sales to the second half

Company press release: ID:nPn7rNstca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.21 bln
$1.14 bln (6 Analysts)
Q2 Loss Per Share
 
$1.40
 
Q2 Gross Profit
 
$168.5 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the renewable energy equipment & services peer group is "buy."
Wall Street's median 12-month price target for Canadian Solar Inc. is $18.00, about 29.8% above its August 26 closing price of $13.87
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 123 three months ago

Reuters Recommended Reads
Aug 26 - JinkoSolar Q2 revenue drops on price pressure
Aug 25 - Sweden's Gigasun Q2 revenue falls 14% on weak solar output
Aug 25 - Canada's SHARC Energy Q2 revenue falls 68% on project timing; names interim CEO, CFO

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)