A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
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.
Revenue
$1.06B
-3.73% YoY
EPS (Diluted)
$3.92
+23.27% YoY
Gross Margin
57.3%
+11.7 pts YoY
Operating Income
$450.39M
+24.55% YoY
Filed · Source: SEC EDGAR 10-Q filing
First Solar (FSLR) reported Q2 FY2026 revenue of $1.06B, down 3.7% year over year. The company posted net income of $422.57M, up 23.6% from a year earlier, with diluted EPS of $3.92. Gross margin was 57.3%. Operating income was $450.39M, up 24.6% year over year. FSLR's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
First Solar Q2 FY2026 net income grew 23.6% YoY to $422.57M as gross margins reached 57.3% on tariff refund benefits and Section 45X tax credits.
Last 4 quarters: 2 beats, 2 misses
Net sales decreased 3.7% YoY to $1.06B due to contract terminations, but gross margin expanded 11.7 percentage points to 57.3%, boosted by expected IEEPA tariff refunds, Section 45X advanced manufacturing production tax credits, and lower logistics costs. Source: 10-Q Item 2 MD&A, p.33
Source: 10-Q Item 2 MD&A, p.33
In May 2026, First Solar fully satisfied all obligations under its India Credit Facility by prepaying $328.2M in principal and $5.5M in interest, reducing long-term debt balance to zero. Source: 10-Q Item 2 MD&A, p.33
Source: 10-Q Item 2 MD&A, p.33
First Solar produced 4.3 GW and sold 3.7 GW of modules in Q2 FY2026, maintaining a firm backlog of 45.1 GW valued at $13.6B through 2030, with up to $0.5B in potential price adjustments from tech enhancements. Construction continues on its sixth U.S. facility in South Carolina. Source: 10-Q Item 2 MD&A, p.33, 39
Source: 10-Q Item 2 MD&A, p.33, 39
During H1 2026, the company permanently converted an Ohio plant to copper replacement (CuRe) technology and advanced R&D on perovskite thin films, with a pilot line expected to operationalize in 2027. Source: 10-Q Item 2 MD&A, p.35
Source: 10-Q Item 2 MD&A, p.35
Following the Supreme Court invalidation of IEEPA tariffs, new Section 122 and Section 301 tariffs were implemented, impacting module production and shipping costs across international locations such as Malaysia, Vietnam, and India. Source: 10-Q Item 1A, p.55-56
Source: 10-Q Item 1A, p.55-56
China tightened export restrictions on key semiconductor raw materials including tellurium and rare earth elements, which could impair module manufacturing supply chains or elevate procurement costs. Source: 10-Q Item 2 MD&A, p.38
Source: 10-Q Item 2 MD&A, p.38
Customer defaults or master supply agreement breaches, such as the litigation filed against BP Solar/Lightsource, constrain module resale capabilities and reduce future contractually anticipated revenue. Source: 10-Q Item 2 MD&A, p.40
Source: 10-Q Item 2 MD&A, p.40
First Solar is active in federal patent infringement litigation against major solar manufacturers including JinkoSolar, Canadian Solar, and Trina Solar over TOPCon technology, incurring legal costs with uncertain outcomes. Source: 10-Q Item 1A, p.59
Source: 10-Q Item 1A, p.59
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the FSLR earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.06B | $1.1B | -3.73% |
Cost of Revenue | $451.19M | $597.32M | -24.46% |
Gross Profit | $605M | $499.85M | +21.04% |
Operating Income | $450.39M | $361.61M | +24.55% |
Net Income | $422.57M | $341.87M | +23.61% |
EPS (Basic) | $3.93 | $3.19 | +23.20% |
EPS (Diluted) | $3.92 | $3.18 | +23.27% |
R&D Expense | $76.24M | $54.49M | +39.93% |
SG&A Expense | $51.95M | $52.59M | -1.22% |
First Solar reported Q2 FY2026 net sales of $1.06B, down 3.7% YoY due to customer contract terminations. However, net income surged 23.6% YoY to $422.57M and gross margin expanded to 57.28%, supported by Section 45X tax credits and IEEPA tariff refunds. Source: 10-Q Item 2 MD&A, p.33
In May 2026, First Solar fully prepaid the remaining $328.2M principal under its India Credit Facility, eliminating its long-term debt balance. Total liabilities decreased 28.8% YoY to $3.07B while cash and equivalents reached $1.69B. Source: 10-Q Item 2 MD&A, p.33
Key risks highlighted include changing U.S. trade policies and Section 301/232 tariffs, Chinese export controls on raw materials like tellurium, customer contract breaches, and active TOPCon patent litigation against major competitors. Source: 10-Q Item 1A, p.55-59
Expected release date, analyst estimates & what to watch
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.
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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