First Solar cuts 2026 forecast, but Q3 profit tops estimates

First Solar Inc. (FSLR) said on Oct. 29, 2026 that third-quarter diluted earnings per share were $5.30, topping the $4.75 consensus estimate compiled by Finnhub. Revenue of $1.23 billion missed the $1.31 billion estimate, and the company lowered its 2026 guidance for volume, net sales and Adjusted EBITDA.

Shares fell 2.2% in after-hours trading as of 4:37 p.m. ET, from a regular-session close of $177.24.

First Solar makes thin film photovoltaic solar modules in the United States. The company says its production process does not rely on Chinese crystalline silicon supply chains.

Here's how the company did:

• Diluted EPS: $5.30 vs. $4.24 a year earlier, against a $4.75 estimate, according to Finnhub
• Revenue: $1.23 billion vs. $1.59 billion a year earlier, against a $1.31 billion estimate, according to Finnhub
• Adjusted EBITDA: $744 million vs. $671 million a year earlier
• Net income: $571 million vs. $456 million a year earlier

Net sales fell 23% from a year earlier, driven primarily by a decrease in the volume of modules sold to third parties, the company said.

Gross profit was $713.1 million, against $610.7 million a year earlier. Operating income was $546.1 million, up from $466.1 million.

For the first nine months, net income was $1.34 billion, or $12.45 per diluted share, compared with $1.01 billion, or $9.37 per diluted share, a year earlier. Nine-month net sales were $3.33 billion, down from $3.54 billion.

The net cash balance decreased to $1.5 billion as of Sept. 30, 2026 from $2.4 billion as of Dec. 31, 2025. The company cited working-capital needs and capital expenditures primarily for its U.S. facilities, partly offset by Section 45X cash receipts and IEEPA tariff refunds received.

CEO Mark Widmar said: "Section 232 represents a structural change in how the United States approaches solar manufacturing." He added: "As a technology company and the only fully-integrated utility-scale solar manufacturer without dependency on the Chinese crystalline silicon supply chain, we believe we are structurally positioned to benefit from this environment."

2026 guidance

The company cut its 2026 volume sold to 16.0 GW to 17.0 GW, from the 17.0 GW to 18.2 GW range it gave on July 30. Net sales are now expected at $4.6 billion to $4.9 billion, down from $4.9 billion to $5.2 billion.

Adjusted EBITDA is now expected at $2.55 billion to $2.75 billion, from $2.6 billion to $2.8 billion. Capital expenditures are now expected at $0.6 billion to $0.8 billion, from $0.8 billion to $1.0 billion.

Gross profit guidance of $2.4 billion to $2.6 billion, operating expense guidance of $610 million to $635 million, and net cash balance guidance of $1.7 billion to $2.3 billion are unchanged.

For the fourth quarter, the company expects module sales of 4.3 GW to 5.3 GW, including 3.4 GW to 4.3 GW from its U.S. manufacturing operations. It expects fourth-quarter Adjusted EBITDA of $643 million to $843 million.

The outlook assumes the current U.S. policy environment persists. The company said it is not providing GAAP net income guidance.

Share repurchase

The board of directors authorized a share repurchase program of up to $500 million of common stock, effective immediately, the company said.

The program has no expiration date and does not obligate the company to buy any particular amount of shares. It may be suspended or discontinued at any time, and the timing and amount of purchases will depend on market conditions and other factors.

The company said the authorization reflects confidence in the long-term value of the business while preserving its disciplined approach to capital allocation.

Costs

Production start-up expense was $34.4 million in the quarter. The company said the Adjusted EBITDA figure excludes share-based compensation, underutilization and production start-up costs.