10-Q · April 30, 2026
In Q1 2026, First Solar reported robust performance with a substantial revenue increase of 23.6% to $1.0 billion, compared to $844 million in Q1 2025, driven by a 30.9% rise in module sales volume. The gross margin…
Earnings analysis · 10-Q
FSLR earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
First Solar delivered a strong earnings quarter, with $5.30 diluted EPS versus the $4.64 consensus estimate, gross margin of 57.9%, and Adjusted EBITDA of $744.0 million. Revenue of $1.231 billion missed consensus and…
Read full summary
First Solar delivered a strong earnings quarter, with $5.30 diluted EPS versus the $4.64 consensus estimate, gross margin of 57.9%, and Adjusted EBITDA of $744.0 million. Revenue of $1.231 billion missed consensus and remained below the prior-year $1.59 billion, while management lowered 2026 sales, volume, Adjusted EBITDA, and capital-spending outlooks. The updated filing also highlights increasing exposure to tariffs, policy changes, intellectual-property litigation, and the $323.6 million remaining BP-related termination-payment claim.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.3
- Gross margin
- 57.9%
What stood out
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Sequential revenue recovery, but below consensus
Revenue was $1.231 billion, up approximately 16% sequentially from $1.06 billion but down approximately 23% year over year from $1.59 billion. The result was below the $1.293 billion consensus estimate.
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EPS beat with strong year-over-year growth
Diluted EPS was $5.30, up from $3.92 in the prior quarter and $4.24 a year earlier, and exceeded the $4.64 consensus estimate.
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Gross margin remained exceptionally strong
Gross margin expanded to 57.9% from 57.3% sequentially and 38.3% year over year, an increase of 0.6 and 19.6 percentage points, respectively.
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EBITDA growth supported profitability
Adjusted EBITDA increased 11% to $744.0 million, supporting earnings despite the quarterly revenue shortfall.
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Contract termination revenue recognized
The BP Solar and Lightsource dispute generated $61.0 million of revenue in the quarter from advance payments previously received, against contractual termination payments of $384.6 million.
What to watch
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Lowered sales and volume outlook
Management lowered 2026 net sales guidance to $4.6 billion-$4.9 billion from $4.9 billion-$5.2 billion and reduced expected volume sold to 16.0-17.0 GW from 17.0-18.2 GW. Adjusted EBITDA guidance was also reduced to $2.55 billion-$2.75 billion from $2.6 billion-$2.8 billion.
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Tariffs and policy changes threaten demand
The updated risk disclosures identify significant tariff exposure, including a 12.5% tariff on imports from China, Vietnam, Malaysia, India, and the EU under the cited Section 301 actions, as well as 50% tariffs on Chinese crystalline-silicon cells and 25% on modules. A December 4, 2026 proclamation also establishes minimum import prices of $21 per kilogram for polysilicon and $0.38 per watt for solar modules.
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Expanding litigation and contract exposure
IP litigation expanded to include a September 28, 2026 suit against JA Solar, while BYD and TOYO filed declaratory actions on September 21 and September 23, 2026, respectively. The filing also reports a BP-related remaining termination-payment claim of $323.6 million and counterclaims seeking $175 million plus return of $15 million in credit support.
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Capital spending outlook reduced
The company reduced 2026 capital-expenditure guidance to $0.6 billion-$0.8 billion from $0.8 billion-$1.0 billion, indicating a more conservative investment posture amid the lower volume outlook.
Management's outlook
2026 net sales guidance was reduced to $4.6 billion-$4.9 billion from $4.9 billion-$5.2 billion; volume sold was reduced to 16.0-17.0 GW from 17.0-18.2 GW; Adjusted EBITDA was reduced to $2.55 billion-$2.75 billion from $2.6 billion-$2.8 billion. Capital expenditure guidance was reduced to $0.6 billion-$0.8 billion from $0.8 billion-$1.0 billion.
Earlier filings 4
10-K · February 24, 2026
First Solar emphasizes its competitive thin‑film CdTe technology, large U.S. market position, and a distributed manufacturing footprint while ramping Series 7 production and onshoring additional capacity. Q4 2025 showed…
10-Q · July 31, 2025
First Solar reported Q2 net sales of $1,097,170,000 and diluted EPS of $3.18, beating consensus. Revenue rose both year-over-year (+$86.7M, +8.6%) and sequentially (+$252.6M, +29.9%), while gross margin compressed to…
10-K · February 27, 2024
First Solar positions itself as the world’s largest thin‑film PV module manufacturer with a technology- and sustainability-led moat (CdTe modules, >60 GW sold) and is aggressively expanding U.S. and global capacity (≈8…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.