First Solar Reports 23.6% Revenue Growth to $1.04 Billion in Latest Quarter

First Solar, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1.04 billion for the three months ended March 31, 2026, a 23.6% increase from $844.6 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $486.1 million, up 41.2% from $344.4 million in the prior year, resulting in a gross profit margin of 46.6%, compared to 40.8% in the previous year. This improvement was attributed to a 30.9% increase in the volume of modules sold, despite a lower average sales price per watt due to increased sales in India.

Operating income for the quarter was reported at $345.3 million, a significant increase from $221.2 million in the same period of 2025. The company’s net income also rose to $346.6 million, or $3.22 per diluted share, compared to $209.5 million, or $1.95 per diluted share, in the previous year. The increase in profitability was supported by lower logistics costs and a higher sales mix of modules qualifying for the advanced manufacturing production credit under Section 45X of the Internal Revenue Code.

In terms of operational developments, First Solar produced 4.3 gigawatts (GW) and sold 3.8 GW of solar modules during the quarter. The company is actively expanding its manufacturing capacity, having recently commenced operations at its fifth U.S. manufacturing facility and planning to open a sixth facility in the second half of 2026. As of March 31, 2026, First Solar had contracts for the future sale of 47.9 GW of solar modules, valued at approximately $14.4 billion, which are expected to be recognized as revenue through 2030.

The company’s cash and cash equivalents decreased to $2.36 billion from $2.80 billion at the end of 2025, primarily due to increased payments to suppliers and capital expenditures for its U.S. facilities. First Solar's total liabilities also decreased to $3.47 billion from $3.78 billion, reflecting a reduction in current liabilities. The company continues to focus on its strategic initiatives, including investments in research and development, which increased by 27.8% to $66.9 million, as it aims to enhance its technology and maintain competitiveness in the solar market.

Looking ahead, First Solar remains optimistic about its growth trajectory, bolstered by favorable government incentives and a strong demand for domestically manufactured solar modules. The company anticipates that the advanced manufacturing production credit will provide a significant source of funding in the coming years, supporting its ongoing expansion and operational initiatives.