First Solar FSLR Q2 2026: EPS Beats by 39% as Margins Surge
As seen on the 24/7 Wall St. homepage on July 30, 2026.
First Solar smashed EPS expectations by 39% as gross margins swelled to 42% from 36% year-over-year, with a 61% adjusted EBITDA margin offset only by customer contract cancellations that held revenue slightly below consensus. The solar maker reaffirmed full-year guidance targeting $4.9B to $5.2B in sales and $2.6B to $2.8B adjusted EBITDA, anchored by $2.1B to $2.2B in Section 45X tax credits and a 45.1 GW sales backlog locked through 2030.
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First Solar reported Q2 2026 earnings per share of $3.92, clearing the $2.82 consensus estimate by 39%. The standout driver was a meaningful expansion in gross margins, which climbed to 42% from 36% in the same quarter a year ago, and an adjusted EBITDA margin of 61%. The one soft spot was revenue, which came in at roughly $1.06 billion, just a fraction below the $1.06 billion estimate, held back by customer contract cancellations.
The company reaffirmed its full-year guidance, keeping its sales outlook at $4.9 billion to $5.2 billion and adjusted EBITDA in the $2.6 billion to $2.8 billion range. A significant portion of that profitability picture is underwritten by $2.1 billion to $2.2 billion in Section 45X domestic manufacturing tax credits. First Solar also carries a 45.1 gigawatt sales backlog locked in through 2030, providing long-dated visibility into future revenue.
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Looking at the recent earnings history, First Solar has had a mixed record against Wall Street estimates — missing in Q3 and Q4 2024 and Q1 2025 before stringing together beats in Q2 2025, Q1 2026, and now Q2 2026. The stock showed a visible price reaction at the time of the SEC filing, jumping from around $206 to nearly $214 before pulling back to roughly $210 in the minutes that followed.
Mentioned: FSLR