First Solar Inc. reported record first‑quarter 2026 revenue of $1.04 billion, up 24% from the same period in 2025, and net income of $346.6 million, translating to $3.22 per diluted share. The earnings per share beat consensus estimates of $2.87, a $0.35 margin that underscores the company’s strong profitability in a competitive market.
Revenue growth was driven by a 31% increase in module volumes sold, with a significant contribution from India where the company recorded record sales. The company also benefited from higher qualifying Section 45X tax‑credit volumes and a reduction in freight costs, which together helped lift gross margin to 47% year‑over‑year.
Gross‑margin expansion was largely attributable to the combined effect of Section 45X credit benefits and lower freight expenses, allowing First Solar to maintain a higher operating margin despite the lower average selling price in India. Operating income rose in line with revenue, reflecting disciplined cost management and efficient scaling of production.
Management reaffirmed its 2026 guidance, keeping net‑sales and gross‑profit targets unchanged. The company highlighted continued confidence in sustained demand, while noting potential headwinds from trade policy changes, tariff shifts, and underutilization of its international facilities in Malaysia and Vietnam.
"Our record first‑quarter results reflect the strength of our business model and the execution of our strategic priorities," said CEO Mark Widmar. He added that the company’s domestic manufacturing footprint and independence from Chinese crystalline silicon supply chains continue to strengthen its competitive position.
First Solar’s strong Q1 performance, coupled with a robust backlog and ongoing investment in its thin‑film technology, positions the company for continued growth in the renewable‑energy sector. The reaffirmed guidance signals management’s confidence in maintaining profitability amid a complex operating environment, while the company’s focus on technology and domestic production provides a strategic advantage in a market increasingly sensitive to supply‑chain and trade dynamics.
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