US module manufacturer First Solar has cut its 2026 sales and volume guidance after third-quarter revenue fell 23% year on year, even as earnings beat analysts' expectations.
The company reported net sales of $1.23 billion for the quarter ended 30 September 2026, and earnings of $5.30 per diluted share. It now expects to sell 16.0 to 17.0 GW of modules in 2026, down from a previous range of 17.0 to 18.2 GW.
Earnings up, sales down
First Solar's net sales fell 23% from a year earlier, mainly because the company sold fewer modules to third parties, according to the results release published on 29 October.
Profitability moved the other way. Earnings per diluted share rose 25% to $5.30, net income reached $571 million, and adjusted EBITDA increased 11% to $744 million.
Investing.com reported that analysts had expected earnings of $4.67 per share on revenue of $1.28 billion. Shares fell 5% in after-hours trading.
Guidance cut
First Solar lowered its full-year net sales guidance to $4.6 billion to $4.9 billion, from $4.9 billion to $5.2 billion. According to Investing.com, the $4.75 billion midpoint is below the analyst consensus of $5.035 billion.
Adjusted EBITDA guidance was trimmed to $2.55 billion to $2.75 billion, from $2.6 billion to $2.8 billion, while gross profit guidance was unchanged at $2.4 billion to $2.6 billion. Capital expenditure guidance was reduced to $0.6 billion to $0.8 billion, from $0.8 billion to $1.0 billion.
For the fourth quarter, the company expects module sales of 4.3 to 5.3 GW, including 3.4 to 4.3 GW from its US factories, and adjusted EBITDA of $643 million to $843 million.
Backlog, cash and buyback
First Solar's contracted sales backlog stood at 44.0 GW at 30 September. Net cash was $1.5 billion, down from $2.4 billion at the end of 2025, reflecting working capital needs and capital expenditure, partly offset by Section 45X cash receipts and tariff refunds.
The board authorised a share repurchase programme of up to $500 million, effective immediately and without an expiration date.
The tariff bet
Chief executive Mark Widmar framed the results around new US trade measures. "Section 232 represents a structural change in how the United States approaches solar manufacturing," he said, adding that the company believes it is "structurally positioned to benefit from this environment."
Widmar also described First Solar as "the only fully-integrated utility-scale solar manufacturer" operating "without dependency on the Chinese crystalline silicon supply chain," according to Investing.com.
The results came one day after First Solar inaugurated a $330 million module finishing plant in Gaffney, South Carolina, which lifts its US manufacturing capacity to 17.7 GW per year.
What it means for American developers
The guidance cut shows that First Solar is selling fewer modules than it planned this year, while its earnings are holding up. For developers, a large contracted backlog and US capacity of 17.7 GW mean First Solar remains a central source of domestic supply as Section 232 tariffs reshape the market. The key question for buyers is how prices and delivery schedules for US-made modules develop once the new tariff regime takes full effect.
Source: First Solar results release, 29 October 2026; Investing.com, 29 October 2026
