First Solar Reports Q2 2026 Financial Results with $1.056 Billion in Net Sales

First Solar, Inc. reported its financial results for the second quarter of 2026, revealing a net sales figure of $1.056 billion, a decrease of 3.7% compared to $1.097 billion in the same period of 2025. The decline was attributed primarily to lower revenue from customer contract terminations, although this was partially offset by a 5.3% increase in the volume of modules sold. For the first half of 2026, net sales increased by 8.2% to $2.100 billion, driven by a 16.8% rise in module sales volume. The company's gross profit for the quarter rose to $605 million, representing a gross margin of 57.3%, up from 45.6% a year earlier, largely due to expected tariff refunds and a higher volume of modules qualifying for advanced manufacturing credits.

Operating income for the second quarter was reported at $450 million, compared to $362 million in the prior year, while net income increased to $423 million from $342 million. The company’s basic net income per share rose to $3.93, up from $3.19 in the same quarter of 2025. First Solar's total operating expenses increased slightly to $155 million, with research and development expenses rising significantly by 39.9% to $76 million, reflecting ongoing investments in technology and product development.

In terms of operational developments, First Solar produced 4.3 gigawatts (GW) of solar modules and sold 3.7 GW during the second quarter, compared to 4.2 GW produced and 3.6 GW sold in the same quarter of 2025. The company is also expanding its manufacturing capacity, with the construction of a sixth facility in South Carolina expected to commence operations in the second half of 2026. As of June 30, 2026, First Solar had contracts for the future sale of 45.1 GW of solar modules, valued at approximately $13.6 billion, which are expected to be recognized as revenue through 2030.

The company’s cash and cash equivalents decreased to $1.688 billion from $2.804 billion at the end of 2025, primarily due to higher payments to suppliers and investments in working capital. First Solar has also made significant strides in managing its debt, having fully repaid its India Credit Facility in May 2026. The company’s outlook remains positive, with expectations of continued demand for its products bolstered by government incentives and a focus on domestic manufacturing, although it acknowledges potential challenges from market volatility and competitive pricing pressures.