Canadian Solar (NASDAQ:CSIQ) Posts Earnings Results, Misses Expectations By $1.22 EPS

Canadian Solar (NASDAQ:CSIQ) issued its quarterly earnings data on Thursday. The solar energy provider reported ($1.40) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.18) by ($1.22), FiscalAI reports. Canadian Solar had a negative return on equity of 4.20% and a negative net margin of 1.87%.The company had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter last year, the company earned ($0.53) earnings per share. The company’s revenue for the quarter was down 28.7% compared to the same quarter last year.

Here are the key takeaways from Canadian Solar’s conference call:

• Canadian Solar posted a $77 million net loss in Q2, or $1.40 per share, as elevated freight costs, Jeffersonville cell-factory ramp-up expenses, higher interest costs, and a foreign-exchange loss weighed on profitability. Gross margin was 13.9%, while operating cash flow was negative $181 million.
• The company opened its U.S. HJT cell facility in Jeffersonville, with Phase 1’s 2.1 GW capacity expected to reach full production on October 1 and total capacity targeted at 6.3 GW in 2027. Canadian Solar has more than 13 GW of contracted U.S. domestically manufactured module backlog valued at over $4.5 billion through 2029.
• e-STORAGE exceeded delivery guidance by shipping 3.7 GWh and recognizing revenue on 3.3 GWh; its contracted backlog stood at $3.5 billion, including long-term service agreements covering 34 GWh. Management also sees growing opportunities to supply battery systems supporting data-center power and grid-resiliency needs.
• Recurrent Energy generated $117 million of revenue and recorded a $19 million operating loss, partly because several project sales shifted into the second half and a $24 million impairment was recognized. Management plans selective asset monetization to recycle capital, improve flexibility, and reduce leverage.
• For Q3, management forecast revenue of $1.3 billion to $1.5 billion, module shipments of 3.5–3.8 GW, storage deliveries of 3.4–3.8 GWh, and gross margin of 13.5%–15.5%; full-year U.S. shipment guidance was maintained. Full-year 2026 capital expenditures are expected to reach approximately $1.3 billion, with heavier spending on U.S. manufacturing and Southeast Asian storage capacity in the second half.

Canadian Solar Stock Performance

CSIQ opened at $13.98 on Friday. The company has a market cap of $949.24 million, a P/E ratio of -5.55 and a beta of 1.52. The company has a quick ratio of 0.81, a current ratio of 1.06 and a debt-to-equity ratio of 0.99. The firm’s 50-day moving average price is $15.01 and its 200-day moving average price is $16.11. Canadian Solar has a 52-week low of $9.41 and a 52-week high of $34.59.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CSIQ. Mizuho boosted their target price on shares of Canadian Solar from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, June 15th. Glj Research restated a “sell” rating and issued a $5.58 price target on shares of Canadian Solar in a report on Thursday. Freedom Capital downgraded shares of Canadian Solar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 19th. Wall Street Zen upgraded shares of Canadian Solar from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 23rd. Finally, Citigroup reissued a “neutral” rating on shares of Canadian Solar in a research report on Thursday. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Canadian Solar currently has an average rating of “Reduce” and an average target price of $18.11.

Trending Headlines about Canadian Solar

Here are the key news stories impacting Canadian Solar this week:

• Positive Sentiment: Energy-storage shipments reached 3.7 gigawatt-hours, above the company’s guidance range of 2.8–3.2 GWh and up 73% year over year, highlighting continued growth in a higher-potential part of the business. Canadian Solar Reports Second Quarter 2026 Results
• Positive Sentiment: Second-quarter revenue of $1.21 billion topped the roughly $1.17 billion consensus estimate, providing some support for the stock despite the earnings shortfall. Canadian Solar Beats on Revenue, But Investors Face Softer Q3 Setup
• Neutral Sentiment: Short interest increased ahead of the earnings release, potentially contributing to heightened volatility and creating the possibility of short-covering if sentiment improves. CSIQ Stock Rises Premarket
• Negative Sentiment: Canadian Solar reported a $1.40-per-share loss, substantially wider than the expected $0.18 loss and worse than the $0.53 loss recorded a year earlier. Revenue also fell 28.7% year over year. Canadian Solar Q2 Loss Wider Than Estimates
• Negative Sentiment: Third-quarter revenue guidance of $1.3–$1.5 billion was below the approximately $1.7 billion analyst consensus, signaling weaker near-term demand or execution than investors had anticipated. Canadian Solar Reports Q2 Loss
• Negative Sentiment: Management warned that ramping up its U.S. factory would create additional profit pressure, adding to concerns about margins, while analysts at GLJ Research reaffirmed a “sell” rating with a $5.58 price target. Canadian Solar CEO Warns of More Profit Pressure

Institutional Trading of Canadian Solar

Several large investors have recently bought and sold shares of CSIQ. Raymond James Financial Inc. purchased a new stake in Canadian Solar during the 2nd quarter valued at about $33,000. Caitong International Asset Management Co. Ltd increased its holdings in Canadian Solar by 335.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 3,198 shares of the solar energy provider’s stock worth $42,000 after buying an additional 2,463 shares during the period. Quarry LP purchased a new position in Canadian Solar during the 4th quarter worth approximately $54,000. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Canadian Solar by 7.0% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,796 shares of the solar energy provider’s stock worth $63,000 after buying an additional 312 shares during the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new stake in Canadian Solar during the 3rd quarter valued at approximately $73,000. Hedge funds and other institutional investors own 52.36% of the company’s stock.

About Canadian Solar

Canadian Solar Inc (NASDAQ: CSIQ) is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world’s largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.