01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
First Solar, Inc. reported strong financial performance for the first quarter of 2026, with net sales increasing by 23.6% year-over-year to $1.04 billiona.
This growth was driven by a significant 30.9%b increase in module sales volume, although partially offset by a lower average selling price per watt due to increased sales in India. The company also saw a substantial improvement in gross profit margin, which rose to 46.6% from 40.8% in the prior year, largely attributable to lower logistics costs and a higher proportion of modules qualifying for the Section 45X advanced manufacturing production credit. Operationally, First Solar produced 4.3 GW and sold 3.8 GW of solar modules during the quarter.
The company's balance sheet remains robust, though cash and cash equivalents decreased due to increased payments to suppliers and capital expenditures, partially offset by proceeds from Section 45X tax credit sales. Management expresses confidence in their liquidity and ability to meet working capital and capital expenditure needs for at least the next 12 months, supported by existing cash, operating cash flows, and an undrawn credit facility.
02—Key points
Key Highlights
- Net sales surged 23.6% to $1.04 billion, driven by a 30.9% increase in module sales volume.
- Gross profit margin improved significantly to 46.6% from 40.8% due to lower logistics costs and higher Section 45X tax credit benefits.
- The company produced 4.3 GW and sold 3.8 GW of solar modules during the quarter.
- Cash and cash equivalents decreased from $2.8 billion to $2.36 billion, primarily due to operational expenditures and capital investments.
- First Solar continues to expand its U.S. manufacturing capacity with a sixth facility expected to commence operations in the second half of 2026.
- The company is actively engaged in patent litigation to protect its intellectual property related to TOPCon solar technology.
- First Solar received significant cash proceeds from the sale of Section 45X tax credits, totaling $117.6 million in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, First Solar, Inc. kept $0.33.
- Revenue$1.04B100.0%
- Cost of revenue−$558.1M53.4%
- Gross profit$486.1M46.6%
- Operating costs−$140.8M13.5%
- Operating income$345.3M33.1%
- Interest, other & tax$1.3M0.1%
- Net income$346.6M33.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.04B$844.57M | +23.6% |
| Cost of Revenue | $558.11M$500.17M | +11.6% |
| Gross Profit | $486.13M$344.40M | +41.2% |
| R&D Expenses | $66.94M$52.39M | +27.8% |
| SG&A Expenses | $65.33M$53.16M | +22.9% |
| Operating Expenses | $140.83M$123.16M | +14.3% |
| Operating Income | $345.30M$221.24M | +56.1% |
| Net Income | $346.62M$209.53M | +65.4% |
| EPS (Basic) | $3.23$1.96 | +64.8% |
| EPS (Diluted) | $3.22$1.95 | +65.1% |
| Shares Outstanding (Basic) | 107.36M107.12M | +0.2% |
| Shares Outstanding (Diluted) | 107.62M107.42M | +0.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of the increase in First Solar's net sales?
The primary driver of the increase in net sales was a 30.9% rise in the volume of solar modules sold to third parties. However, this was partially offset by a lower average selling price per watt, influenced by an increased volume of sales in India.
How did First Solar improve its gross profit margin?
First Solar's gross profit margin improved due to a combination of factors, including lower logistics costs (specifically reduced detention and demurrage charges) and a higher sales mix of modules qualifying for the Section 45X advanced manufacturing production credit. These benefits more than offset the impact of a lower average selling price per watt.
What is the status of First Solar's cash position and liquidity?
As of March 31, 2026, First Solar had $2.36 billion in cash and cash equivalents, a decrease from $2.80 billion at the end of 2025. This decrease was mainly due to operational expenditures and capital investments. Despite this, the company believes its current liquidity, operating cash flows, and future contracted sales are sufficient to meet its needs for at least the next 12 months, supported by an undrawn credit facility.
What are the key legal proceedings First Solar is involved in?
First Solar is involved in significant patent litigation concerning its TOPCon solar technology, having filed lawsuits against JinkoSolar, Mundra Solar PV, Canadian Solar, and Trina Solar. The company also filed a petition with the USITC asserting infringement by several other entities. Additionally, First Solar is engaged in a customer contract dispute with BP Solar Holding LLC and Lightsource Renewable Energy Trading, LLC, seeking termination payments.
06—Continue