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First Solar is Set to Post Q2 Earnings: What's in Store?

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Key Takeaways

  • FSLR's Q2 revenues may rise on strong solar demand and rising sales of U.S.-made modules.
  • New tariffs likely reduced Southeast Asia output, shifting module sales to lower-priced markets like India.
  • Higher U.S. production costs and factory underuse in Asia may weigh on FSLR's Q2 earnings performance.

First Solar, Inc. ((FSLR - Free Report) ) is scheduled to report second-quarter 2025 results on July 31, 2025, after market close.

First Solar delivered a negative earnings surprise of 22.00% in the last reported quarter. The company has a four-quarter average negative earnings surprise of 6.94%.

Let’s discuss the factors that are likely to reflect in the upcoming quarterly results.

Factors to Note Ahead of FSLR’s Results

Steadily improving global solar energy demand, backed by growing energy consumption, declining installation costs and increasing clean energy awareness, has been boosting sales volume for First Solar’s products. This trend, along with its production capacity enhancements, particularly in the United States, is expected to have boosted FSLR’s top-line performance.

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote

Solid revenue growth expectations and a high mix of modules sold from U.S. factories, which qualified for Section 45X tax credits, are likely to have bolstered the company’s quarterly earnings growth.

However, lower capacity utilization and throughput at its Malaysia and Vietnam factories, expected to have begun in the second quarter due to an anticipated reduced demand for modules potentially affected by newly imposed U.S. tariffs, are likely to have put downward pressure on First Solar’s second-quarter revenues and earnings.

Also, a shift in sales mix for FSLR’s modules is anticipated in the second quarter, with more modules now directed to the lower-priced Indian market instead of the United States, due to tariff-related constraints on Southeast Asia production. This is also likely to have hurt First Solar’s top and bottom-line performance in the soon-to-be-reported quarter.

Moreover, high module production costs of domestic U.S. module volume and underutilization charges from running the Malaysia and Vietnam factories at lower-than-full production capacity are likely to have impacted FSLR’s overall bottom-line performance.

FSLR’s Q2 Estimates

The Zacks Consensus Estimate for FSLR’s second-quarter sales is pinned at $1.03 billion, which indicates year-over-year growth of 1.9%.

The consensus estimate for earnings per share is pinned at $2.68, which indicates a year-over-year decline of 17.5%.

What the Zacks Model Unveils for FSLR

Our proven model does not conclusively predict an earnings beat for First Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: First Solar’s Earnings ESP is -5.23%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: First Solar currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three companies from the same sector that have the right combination of elements to post an earnings beat this reporting cycle.

Array Technologies ((ARRY - Free Report) ) is set to report second-quarter 2025 earnings on Aug. 7, 2025. It has an Earnings ESP of +28.57% and a Zacks Rank of 2.

The Zacks Consensus Estimate for ARRY’s earnings is pegged at 21 cents per share, indicating year-over-year growth of 5%. The consensus estimate for its sales is pegged at $290.3 million, indicating year-over-year growth of 13.5%.

ONEOK ((OKE - Free Report) ) is set to report second-quarter 2025 earnings on Aug. 4, 2025. It has an Earnings ESP of +1.50% and a Zacks Rank of 3.

The Zacks Consensus Estimate for OKE’s earnings is pegged at $1.39 per share, indicating year-over-year growth of 4.5%. The consensus estimate for its sales is pegged at $8.56 billion, indicating year-over-year growth of 75%.

Nextracker Inc. ((NXT - Free Report) ) is slated to report fiscal first-quarter 2026 earnings on July 29, 2025. It has an Earnings ESP of +4.56% and a Zacks Rank of 2.

The Zacks Consensus Estimate for NXT’s fiscal first-quarter earnings is pegged at $1.04 per share, indicating year-over-year growth of 11.8%. The consensus estimate for its sales is pegged at $853.4 million, indicating year-over-year growth of 18.5%.

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