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FSLR US S&P 500Russell 1000 Earnings call

First Solar (FSLR) · Q2 2026 results and valuation

Share price: $178.11 · 2026-11-11

First Solar is a manufacturer of thin-film photovoltaic solar modules that use cadmium telluride technology. The company produces these modules for the global electricity market and operates manufacturing facilities in the United States, Malaysia, Vietnam, and India. Source: 10-K annual report (2026-02-24)

Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026

Net income up 21.9% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

+21.9%

Net income vs Q1 2026

Outlook given

Net income 422.6M vs 346.6M

Revenue +1.1%

Against the same quarter last year (Q2 2025) it is +23.6%, so it is not just seasonal.

Why Against the same quarter last year (+23.6%), net income rose primarily due to an estimated $89 million net IEPA tariff related benefit from a higher mix of modules qualifying for section 45 tax credits and lower logistics costs.

2 · How management spoke

Restrained

Less upbeat than 70% of company calls

Answers to analysts: cautious, in line with the script.

Similar to last call.

3 · What stood out

First Solar expects third-quarter sales volumes between 3.9 and 4.5 gigawatts and adjusted EBITDA between $625 million and $775 million.

Valuation

Is First Solar undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $564.07 a share — the stock trades 68% below it. Today's price assumes 3.2% growth a year.

Current price

$178.11

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+3.2% for 10 yrs

Fair value / share

$564.07

Buy below

$423.05

Price vs fair value

Undervalued 68%

Price vs buy-below price

Undervalued 58%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Guidance

    For the third quarter, the company expects volumes sold between 3.9 and 4.5 gigawatts and adjusted EBITDA between $625 million and $775 million.

  2. Figure

    The company generated over $1 billion in net sales and expanded gross margin to approximately 57% during the quarter.

    Source quote
    “During the quarter, we generated over $1 billion in net sales, expanded gross margin to approximately 57%, and delivered strong adjusted EBITDA performance.”
  3. Key theme

    The completed South Carolina facility is expected to provide up to 3.5 gigawatts of finishing capacity to provide greater flexibility in optimizing supply chain, freight, tariffs, and domestic content.

    Source quote
    “Once completed, the South Carolina facility is expected to provide up to 3.5 gigawatts of finishing capacity for modules initiated at our international manufacturing sites giving us greater flexibility to optimize our supply chain, flexibility, while also optimizing freight, tariff, domestic content, and section 45 x economics.”
  4. Figure

    Net income was $423 million, which is up approximately 24% year over year.

    Source quote
    “Net income was $423 million, up approximately 24% year over year.”
  5. Figure

    The company ended the quarter with approximately 45.1 gigawatts of contract backlog.

    Source quote
    “We ended the quarter with approximately 45.1 gigawatts of contract backlog.”
3 more
  1. Figure

    The company recorded approximately 1.9 gigawatts of additional U.S. Gross bookings at an average selling price of approximately $0.36 per watt since the last earnings call.

    Source quote
    “Since our last earnings call, we recorded approximately 1.9 gigawatts of additional U. S. Gross bookings at an average selling price of approximately $0.36 per watt.”
  2. Key theme

    The company is exploring how to leverage existing skills for adjacent products while monitoring the overall market environment.

    Source quote
    “How can we leverage that set of skills and take it into an adjacent product, but also look at the overall market environment we will be playing in.”
  3. Figure

    The company reported approximately $30 million in underutilization per quarter, which impacts operational efficiency.

    Source quote
    “So we are running somewhere around $30 million a quarter of underutilization.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Restrained (was restrained)
Answers to analysts Cautious (was cautious)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“that is something where we look at our strength in high volume thin film manufacturing, a very high throughput efficiency.”
“Beginning on Slide 4, we delivered both record second quarter and first half sales volume and improved financial performance relative to the prior year.”
“During the quarter, we generated over $1 billion in net sales, expanded gross margin to approximately 57%, and delivered strong adjusted EBITDA performance.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 1.06B 1.04B +1.1% 1.10B −3.7%
Gross profit 605.0M 486.1M +24.5% 499.9M +21.0%
Operating income 450.4M 345.3M +30.4% 361.6M +24.6%
Net income 422.6M 346.6M +21.9% 341.9M +23.6%
EPS 3.92 3.22 +21.7% 3.18 +23.3%
P/E today 11.6 14.5 12.7 +1.8 14.1 +0.4

Topics

Most discussed now

  • First Solar's US facilities continue to operate at high utilization rates during the quarter.
  • While near term customer activity continues to be influenced by the current policy environment, discussed by Mark, First Solar's fully…
  • Given the limited amount of uncommitted domestic capacity available over next several years, First Solar continues to be disciplined in…
  • I either it is selling fully finished international product subject to where tariffs end up or there is the potential...
  • Ultimately, it leaves us with about 1.8 gigawatts of end to end fully finished capacity that First Solar could ramp up...

Faded since Q1 2026

  • Fading When you look at the blended average of the adder, the entitlement of the adders are still, call it, $0.03...
  • Dropped Extensive testing data has validated First Solar's expected bifaciality, advantaged temperature coefficient and degradation profile.
  • Fading One of the things is now with the launch of CuRe as an example, First Solar yous'll see it's kind I...
  • Fading First Solar will be bringing some volume over, it is talking 10s to low 100 megawatts or so of WIP share product...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

  • Results of operations; Other events · SEC 8-K
  • Results of operations · SEC 8-K

    First Solar reported net sales of $1.06 billion, a 4% decrease year-over-year, and net income per diluted share of $3.92, an increase of 23% year-over-year.

  • Shareholder vote results · SEC 8-K · routine
  • Results of operations · SEC 8-K

    First Solar reported net sales of $1.04 billion, up 24% year-over-year, and net income per diluted share of $3.22, up 65% year-over-year.

  • Results of operations · SEC 8-K

    First Solar reported net sales of $5.2 billion for 2025, up from $4.2 billion in the prior year, with a net income per diluted share of $14.21 for the full year.

  • Material agreement; Agreement terminated; New financial obligation · SEC 8-K

    The company terminated its senior secured revolving credit agreement dated June 30, 2023, and entered into a new Credit Agreement on February 13, 2026.

  • Results of operations · SEC 8-K

    First Solar reported net sales of $1.6 billion and net income per diluted share of $4.24 for the third quarter of 2025, compared to $3.18 in the second quarter.

  • Other events · SEC 8-K

    First Solar, Inc. entered into a tax credit transfer agreement to sell $600,000,000 of advanced manufacturing production tax credits for a purchase price of $573,000,000.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

  1. the second half of 26

    first phase of the finishing facility production

    Source quote
    “In South Caroline, the first phase of the finishing facility remains on track to begin production. In the second half of 26. With equipment installations progressing as expected.”
  2. mid 27

    completion of the second phase of the finishing facility

    Source quote
    “For the second phase, we now expect completion in mid 27.”
  3. the first half. Of 27

    Series 6 form factor pilot line operational readiness

    Source quote
    “While our Series 6 form factor pilot line remains on schedule. And is expected to reach operational readiness in the first half. Of 27.”
  4. through 2030

    scheduled deliveries

    Source quote
    “With scheduled deliveries extending through 2030.”
  5. through 2028

    domestic manufacturing fleet commitment

    Source quote
    “Our fully integrated domestic manufacturing fleet remains substantially committed through 2028.”

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