Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
First Solar delivered a strong Q1 FY2026 with revenue up 23.6% YoY to $1.04B, net income surging 65.4% to $347M, and gross margin expanding to 46.6%, reflecting improved manufacturing efficiency and higher average selling prices.
Revenue
$1.04B
+23.64% YoY
EPS (Diluted)
$3.22
+65.13% YoY
Gross Margin
46.6%
+5.8 pts YoY
Operating Income
$345.3M
+56.07% YoY
Source: SEC XBRL
First Solar (FSLR) reported Q1 FY2026 revenue of $1.04B, up 23.6% year over year. Operating margin was 33.1%, up 6.9 points from 26.2% a year earlier. Operating cash flow was negative $214.87M. FSLR's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.92 | 2.89 | Beat +35.5% |
| Mar 2026This filing | 3.22 | 2.93 | Beat +10.0% |
| Dec 2025 | 3.22 | 2.93 | Beat +10.0% |
| Sep 2025 | 4.24 | 4.34 | Miss -2.3% |
Reported EPS of $3.22 versus the $2.93 analyst consensus — a +10.0% beat for Mar 2026.
Compiled by AI from this SEC filing
Revenue increased 23.6% YoY from $844.6M to $1.04B in Q1 FY2026, suggesting a combination of increased module shipments and favorable pricing dynamics in the solar manufacturing segment.
Source: 10-Q Income Statement, Q1 FY2026
Gross margin expanded approximately 578 basis points YoY from 40.8% to 46.6%, indicating meaningful improvements in manufacturing cost efficiency and/or a more favorable product mix, with gross profit rising 41.2% to $486.1M.
Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Operating income grew 56.1% YoY to $345.3M while operating margin expanded to 33.1% from 26.2%, showing that revenue growth is outpacing the 27.8% rise in R&D ($66.9M) and 22.9% rise in SG&A ($65.3M) expenses.
Source: 10-Q Income Statement, Q1 FY2026
Cash and equivalents surged 182.1% YoY to $2.36B from $837.6M, significantly strengthening the company's liquidity position, while long-term debt declined 27.7% to $237.2M, improving the balance sheet structure.
Source: 10-Q Balance Sheet, Q1 FY2026
Operating cash flow was -$214.9M in Q1 FY2026, a significant improvement from -$608.0M in Q1 FY2025 (64.7% improvement YoY), reflecting better working capital management despite the capital-intensive nature of solar manufacturing.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Despite strong profitability, First Solar generated negative operating cash flow of -$214.9M in Q1 FY2026. This disconnect between reported net income ($346.6M) and operating cash flow suggests significant working capital consumption, potentially from inventory build-up or large advance payments to suppliers tied to capacity expansion.
Source: 10-Q Cash Flow Statement, Q1 FY2026
First Solar's profitability is materially supported by U.S. manufacturing tax incentives under the Inflation Reduction Act (Section 45X credits). Any legislative changes, repeal, or reduction of these credits could significantly impact margins and net income, as the company is a domestic U.S. manufacturer of thin-film solar modules.
Source: 10-Q, Q1 FY2026 (inferred from business model)
First Solar relies almost exclusively on its proprietary cadmium telluride (CdTe) thin-film technology, which differs from the dominant crystalline silicon technology used by most competitors. Any technological disruption or efficiency breakthrough by silicon-based competitors could erode First Solar's competitive positioning.
Source: 10-Q, Q1 FY2026 (inferred from business model)
Investing cash outflows increased 68.4% YoY to -$148.5M, reflecting ongoing capacity expansion. Large-scale manufacturing expansions carry execution risks including cost overruns, construction delays, and the risk that new capacity comes online during periods of weaker demand or pricing.
Source: 10-Q Cash Flow Statement, Q1 FY2026
Solar project developers represent a concentrated customer base, and revenue recognition depends on project completion timelines that can shift due to permitting delays, interconnection queues, or financing challenges on the customer side. This creates potential volatility in quarterly revenue recognition.
Source: 10-Q, Q1 FY2026 (inferred from business model)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.04 $B | 0.84 $B | +23.64% |
Cost of Revenue $M | 558.11 $M | 500.17 $M | +11.58% |
Gross Profit $M | 486.13 $M | 344.40 $M | +41.15% |
Operating Income $M | 345.30 $M | 221.24 $M | +56.07% |
Net Income $M | 346.62 $M | 209.54 $M | +65.42% |
EPS (Basic) $ | 3.23 $ | 1.96 $ | +64.80% |
EPS (Diluted) $ | 3.22 $ | 1.95 $ | +65.13% |
R&D Expense $M | 66.94 $M | 52.39 $M | +27.78% |
SG&A Expense $M | 65.33 $M | 53.16 $M | +22.89% |
Answers draw on this SEC filing and the data on this page
First Solar reported a 3.7% year-over-year revenue decline to $1.06B in Q2 FY2026 due to contract terminations, yet expanded net income 23.6% to $422.57M driven by IEEPA tariff refunds, Section 45X credits, and disciplined cost execution.
First Solar (FSLR) delivered strong FY2025 results with revenue surging 24.1% to $5.22B and net income rising 18.3% to $1.53B, though gross and operating margins compressed modestly as cost of revenue grew faster than sales.
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