$FSLR · FIRST SOLAR, INC.
First Solar reported Q3 2026 results with net sales of $1.23B, down 23% YoY, while diluted EPS rose 25% to $5.30. The company cut full-year 2026 guidance: net sales to $4.6B–$4.9B (from $4.9B–$5.2B), volume sold to 16.0–17.0 GW (from 17.0–18.2 GW), and Adjusted EBITDA to $2.55B–$2.75B (from $2.6B–$2.8B). Separately, the board authorized a $500M share repurchase program with no expiration date.
- Q3 net sales of $1.23B fell 23% YoY from $1.59B, driven by lower third-party module volumes.
- Diluted EPS rose 25% YoY to $5.30, aided by a $5M income tax benefit vs. a $4.4M expense last year.
- Full-year 2026 net sales guidance cut to $4.6B–$4.9B from $4.9B–$5.2B; volume sold lowered to 16.0–17.0 GW.
- Adjusted EBITDA guidance trimmed to $2.55B–$2.75B from $2.6B–$2.8B; capex reduced to $0.6B–$0.8B.
- Board authorized a $500M share repurchase program with no expiration date, effective immediately.
Extended-hours trading shows FSLR at $167.40, down 5.36% vs. the regular close of $176.89. The revenue miss and guidance cut are outweighing the $500M buyback announcement in after-hours action.
A simultaneous guidance cut and $500M buyback authorization creates a conflicting signal — declining fundamentals offset by capital return — that investors must reconcile.
First Solar's revenue contraction contrasts with broader solar demand growth narratives, though its thin-film CdTe technology and U.S.-centric manufacturing insulate it from Chinese crystalline silicon supply chain exposure — a structural differentiator the CEO highlighted around Section 232.
Guidance assumes current U.S. policy environment persists, including IRA Section 45X tax credits and tariffs; any modification, reduction, or elimination of these supports could materially impact results. The 23% revenue decline signals demand-side or volume-execution risk.