First Solar Q2 sales fall 4% on contract terminations, meet expectations

First Solar

30/07/2026 21:13

Overview
US solar module maker's Q2 sales fell 4% yr/yr, meeting analyst expectations
Q2 net income per diluted share rose 23% yr/yr to $3.92
Sales decline driven by customer contract terminations, partly offset by higher module sales volume

Outlook
First Solar maintains 2026 net sales guidance of $4.9 bln to $5.2 bln
Company expects Q3 module sales of 3.9 GW to 4.5 GW
First Solar forecasts Q3 adjusted EBITDA between $625 mln and $775 mln

Result Drivers
CONTRACT TERMINATIONS - Co said lower revenue was primarily due to customer contract terminations
HIGHER MODULE SALES VOLUME - Increased volume of modules sold to third parties partly offset revenue decline

Company press release: ID:nBwgSfpSa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Meet
$1.06 bln
$1.06 bln (26 Analysts)
Q2 EPS
 
$3.92
 
Q2 Net Income
 
$422.57 mln
 
Q2 Gross Profit
 
$605.004 mln
 
Q2 Operating Expenses
 
$154.62 mln
 
Q2 Operating Income
 
$450.39 mln
 
Q2 Pretax Profit
 
$459.38 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 27 "strong buy" or "buy", 13 "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 First Solar Inc is $260.00, about 30.5% above its July 29 closing price of $199.24
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
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July 28 - SunPower Q2 revenue drops on delayed job completions
July 29 - Nordex second-quarter core earnings nearly double, beating forecasts

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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.)