First Solar Q3 net income rises 25% to $571 million

First Solar reported third-quarter 2026 net sales of $1.23 billion, according to the company. The company’s gross margin for the period stood at 58%.

Net income for the quarter was $571 million.

Margin expansion and sales decline

First Solar’s net sales fell 23% year-over-year, driven by lower third-party module volumes. Despite the revenue contraction, the company’s gross margin expanded by roughly 20 percentage points compared to the same quarter in 2025. This significant improvement in profitability allowed net income to rise 25% year-over-year, reaching $571 million.

Strategic shifts and financial actions

First Solar authorized a $500 million stock buyback. The company also revised its full-year 2026 outlook, citing lower volume and sales expectations.

Metric	Previous Guidance	Updated Guidance
Volume Sold	16.0 GW to 17.0 GW	16.0 GW to 17.0 GW
Net Sales	$4.9 billion to $5.2 billion	$4.6 billion to $4.9 billion

The volume forecast remained unchanged, but the sales range shifted downward by $300 million at both ends.

Supply chain and technology outlook

First Solar has executed a non-exclusive patent license deal with CubicPV, integrating that firm’s intellectual property rights into its current partnership with Oxford PV.

Preliminary field trials and durability assessments for perovskite modules are set to launch at the Perrysburg, Ohio site during the first half of 2027.

The company anticipates that close to 80% of its worldwide manufacturing operations will be situated in the United States by 2027.

Regulatory context and open questions

• CEO Mark Widmar described Section 232 as a fundamental shift in U.S. solar manufacturing strategy. He emphasized that, as a technology firm and the sole fully integrated utility-scale solar producer independent of Chinese crystalline silicon supply chains, the company is structurally poised to capitalize on these conditions.
• CFO Alex Bradley stated the company wants to avoid the spot market. He explained that moving to a project-based model allows for more efficient operational planning.
• First Solar maintains a contracted backlog of 44 GW, valued at roughly $13.5 billion, extending through 2030. Since the Q2 update, U.S. bookings have reached 1.4 GW at an average price of approximately 36 cents per watt.
• The company must make a binary choice regarding its Malaysia facility in early 2027: operate at full capacity or cease operations. Production from this plant is not eligible for U.S. Section 45X manufacturing tax credits.
• A formal reply to the Swift Current Energy warranty lawsuit is still pending. CEO Mark Widmar affirmed that the company will uphold its obligations within the limits of its limited liability warranty, but it will not offer remedies beyond those specified terms.
• Details on enforcing Section 232 minimum import prices, anti-stockpiling regulations, and additional guidance on Foreign Entity of Concern (FEOC) rules remain unresolved.

Vietnam supply chain and warranty litigation specifics

First Solar’s Vietnam operations are set to deliver semi-finished Series 6 modules to its new South Carolina finishing plant, whereas the Malaysia site will keep manufacturing finished modules for international markets. CEO Mark Widmar indicated that a definitive operational choice regarding the Malaysia plant is anticipated in the first half of 2027, with options ranging from operating at full or near-full capacity to ceasing production entirely. The firm asserts that neither scenario should significantly impact its run-rate earnings, as Malaysian modules incur freight and tariff expenses and are ineligible for U.S. Section 45X manufacturing tax credits.

During the earnings call, Widmar announced that First Solar will shortly submit its formal legal reply in the Swift Current matter. He affirmed that the company’s warranty provisions dictate any corrective actions, remarking: “We will stand by and we will support under the parameters of our limited liability warranty the obligations that we have.” He further clarified: “Where people are asking for remedies that are outside the parameters of the warranty, that’s not something that we will do.”

CFO Alex Bradley highlighted the intention to refrain from selling international volume on the spot market. The strategy is shifting toward project-specific agreements with set delivery timelines, moving away from the multi-year framework deals spanning multiple projects for major clients that have characterized First Solar’s history. Bradley observed that this project-specific approach lowers working capital needs and warehousing expenses, although it may decelerate the accumulation of multi-year backlog.