Key Highlights

● Third-quarter net sales fell 23% to $1.23 billion on lower third-party module volumes.

● Diluted EPS rose to $5.30 from $4.24 as gross Margin reached about 58%.

● The company cut its 2026 Volume guidance to 16.0 to 17.0 gigawatts.

● The board authorized a share repurchase of up to $500 million.

The latest report from First Solar (NASDAQ:FSLR) pulls investors in two directions. The largest U.S.-based solar panel maker earned more per share than a year ago and authorized a new $500 million buyback, but it also cut its full-year sales outlook. A confirmed pre-market price move was not available, so the stock's direction ahead of Friday's open is unclear.

Profits up, volumes down

First Solar reported third-quarter net sales of $1.23 billion after Thursday's close, down 23% from a year earlier, which it attributed mainly to lower volumes of modules sold to third parties, according to its Earnings release. Diluted EPS rose to $5.30 from $4.24, and Net Income was $571 million. Adjusted EBITDA increased 11% to $744 million.

Profitability improved sharply. Gross Profit of $713 million on $1.231 billion in sales works out to a gross margin of about 58%, compared with roughly 38% a year earlier, based on the release's figures. One morning note placed First Solar in its earnings "beat" column with a figure of $0.63, which appears to show EPS beating consensus by 63 cents, although the note does not label the units.

The outlook was weaker. First Solar cut its 2026 volume guidance to 16.0 to 17.0 gigawatts from 17.0 to 18.2 gigawatts, net sales to $4.6 billion to $4.9 billion from $4.9 billion to $5.2 billion, and adjusted EBITDA to $2.55 billion to $2.75 billion from $2.6 billion to $2.8 billion. It kept gross profit guidance at $2.4 billion to $2.6 billion and lowered its Capital spending plan. Contracted Backlog stood at 44.0 gigawatts at the end of September.

Buyback, tariffs and the analyst view

The board authorized a share repurchase of up to $500 million, effective immediately and with no expiration date. Net cash was $1.5 billion at the end of the quarter, down from $2.4 billion at the end of 2025, after Working Capital needs and U.S. factory spending.

CEO Mark Widmar focused on trade policy. "Section 232 represents a structural change in how the United States approaches solar manufacturing," he said, adding that "we believe we are structurally positioned to benefit from this environment." The company describes itself as the only fully integrated utility-scale solar manufacturer that does not depend on the Chinese crystalline silicon Supply chain, an advantage when imports face tariffs.

One brokerage lowered its price target on First Solar to $236 following the results, according to a headline. The full note, including the brokerage's rating and prior target, was not available for review.

Market context, risks and what to watch

First Solar is a member of the S&P 500 and one of the index's most direct plays on U.S. solar manufacturing. The broader setup this morning is difficult for growth stocks: Nasdaq-100 futures were down about 2.5% and S&P 500 futures about 1.1% after Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) results. The 10-year Treasury Yield near 5% raises financing costs for the utility-scale projects that buy First Solar's panels.

Policy is both an opportunity and a risk. Tariffs and Section 232 measures protect domestic producers, but changes to clean energy tax credits or permitting could slow demand. The company's guidance assumes the current policy environment and historical permitting timelines continue. Tuesday's midterm elections could shift that debate.

At the open, watch whether investors focus on the higher margins and buyback or on the lower sales guidance. Also watch for more analyst target changes and for updates on bookings, which this release did not disclose. First Solar's fourth-quarter outlook implies module sales of 4.3 to 5.3 gigawatts, a key number to track into early 2027.