First Solar Stock Rises on Strong Q2 Earnings and 57% Gross Margin

First Solar (FSLR) shares rose in after-hours trading after the company posted second-quarter financial results that significantly beat analyst expectations, driven by a sharp expansion in profitability. The U.S.-based manufacturer's stock gained 2.9% in extended trading following the release.

Earnings Beat and Margin Expansion

The company reported adjusted earnings per share (EPS) of $3.92 for the second quarter of 2026, surpassing the analyst consensus of $3.01 by a 30% margin. Quarterly revenue of $1.06 billion landed precisely in line with market forecasts, according to the earnings release.

The standout figure for investors was a dramatic improvement in gross margin, which expanded to approximately 57%. This marked an increase of roughly 12 percentage points compared to the same period a year earlier. The company attributed the margin growth to several factors:

• An $89 million net benefit from tariff-related provisions.
• Stronger qualification for Section 45X advanced manufacturing tax credits.
• Reduced logistics costs.

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Outlook and Order Book

First Solar reaffirmed its full-year guidance for 2026, though its revenue outlook of $5.05 billion came in slightly below the analyst consensus of $5.08 billion. This guidance is supported by a substantial order backlog of $13.6 billion, which provides investors with significant visibility into future demand.

Market Context

The strong results underscore First Solar's structural advantage as the only major U.S.-headquartered solar manufacturer, positioning it to benefit from domestic manufacturing incentives. While the broader market saw modest gains during the regular session, with the S&P 500 adding 0.2%, First Solar's after-hours move was clearly driven by its own company-specific performance rather than general sector momentum.