First Solar Q3 revenue falls on lower module sales volumes, cuts 2026 net sales outlook

Overview

• U.S. solar module maker's Q3 net sales fell 23% yr/yr, missing analyst expectations

• EPS for Q3 rose 25% yr/yr

• Company authorized $500 mln share repurchase program

Outlook

• First Solar lowers 2026 net sales guidance to $4.6 bln-$4.9 bln from $4.9 bln-$5.2 bln

• Company expects 2026 Adjusted EBITDA of $2.55 bln-$2.75 bln, down from $2.6 bln-$2.8 bln prior

• Fourth quarter Adjusted EBITDA forecasted between $643 mln and $843 mln

Result Drivers

• LOWER MODULE SALES - Co said Q3 sales fell due to a decrease in the volume of modules sold to third parties

• HIGHER PROFITABILITY - Co reported higher net income and Adjusted EBITDA yr/yr despite lower sales, reflecting improved margins

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 9 "hold" and 2 "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 $265.00, about 50.3% above its October 28 closing price of $176.30

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 27 - Enphase Energy Q3 results miss estimates on weak US, Europe demand

• Oct 29 - SEG Solar secures land for planned $950 million cell plant

• Oct 28 - India's Waaree bets on US solar boom, expands local sourcing on data-centre growth

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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.)