Canadian Solar (NASDAQ:CSIQ) Releases Earnings Results, Misses Estimates By $0.56 EPS

Canadian Solar (NASDAQ:CSIQ) announced its quarterly earnings data on Thursday. The solar energy provider reported ($1.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.10) by ($0.56), FiscalAI reports. The firm had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.37 billion. Canadian Solar had a negative return on equity of 5.28% and a net margin of 0.27%.Canadian Solar’s revenue was down 20.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.48 earnings per share.

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

• Canadian Solar is aggressively reshoring U.S. manufacturing — Mesquite modules ramped to >5 GW and are being expanded to 10 GW, while the Jeffersonville HJT cell plant (2.1 GWp phase 1, 4.2 GW phase 2) targets a total 6.3 GWp, positioning the company as the largest U.S. crystalline‑silicon cell/module manufacturer.
• Despite a 160 bps YoY gross‑margin improvement, 2025 revenue was $5.6B and the company recorded a full‑year net loss attributable to shareholders of $104M (−$2.5/sh), driven by FX losses and higher interest costs from increased debt to fund the IPP/manufacturing build‑out.
• Energy storage momentum continued with a record 7.8 GWh shipped in 2025 (up 19% YoY), a $3.6B contracting backlog (including 29 GWh of long‑term service agreements), and rising demand from data‑center related projects (notably a 2.5 GWh supply agreement).
• Q1 2026 guidance calls for 2.2–2.4 GW of module shipments and 1.7–1.9 GWh of storage with revenue of $900M–$1.1B and gross margin of 13%–15%; full‑year U.S. targets are 6.5–7 GW modules and 4.5–5.5 GWh storage, but management flags near‑term margin pressure from BABA‑compliant cell constraints and higher input costs.
• Recurrent Energy experienced project‑sale delays and asset impairments that produced a Q4 operating loss of $69M, led to pipeline pruning (now ~24 GW solar and 83 GWh storage), and prompted a strategic shift toward monetizing operating and under‑construction assets to improve cash flow.

Canadian Solar Stock Performance

CSIQ traded down $5.35 during trading on Thursday, hitting $13.17. The stock had a trading volume of 4,239,022 shares, compared to its average volume of 2,866,364. The firm has a market cap of $881.99 million, a PE ratio of -36.81 and a beta of 1.31. The company has a current ratio of 1.07, a quick ratio of 0.86 and a debt-to-equity ratio of 0.93. Canadian Solar has a 12 month low of $6.57 and a 12 month high of $34.59. The company has a 50 day simple moving average of $19.67 and a 200-day simple moving average of $19.61.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CSIQ. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Canadian Solar in a research report on Monday, December 29th. Mizuho raised Canadian Solar from an “underperform” rating to a “neutral” rating and lowered their price target for the company from $21.00 to $19.00 in a research note on Tuesday. UBS Group increased their price objective on Canadian Solar from $15.00 to $37.00 and gave the stock a “buy” rating in a report on Wednesday, November 19th. Finally, Daiwa Securities Group raised shares of Canadian Solar from a “neutral” rating to an “outperform” rating and set a $30.00 price objective on the stock in a research report on Tuesday, December 2nd. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $19.63.

Canadian Solar News Summary

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

• Positive Sentiment: Won a 500 MW battery storage deal with a U.S. utility, which adds contracted/near-term project backlog and diversifies revenue beyond modules. Canadian Solar snags 500 MW battery storage deal with U.S. utility
• Positive Sentiment: Full‑year 2025 shipment highlights: 24.3 GW shipped globally and a record 8.1 GW to the U.S., showing execution and scale that support longer‑term growth prospects. Canadian Solar Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Mizuho upgraded the stock to Neutral, which could limit further downside from some institutional investors. Mizuho Upgrades Canadian Solar (NASDAQ:CSIQ) to Neutral
• Neutral Sentiment: Pre‑earnings analyst preview coverage outlined metrics to watch for Q4, useful context but not a direct catalyst. Gear Up for Canadian Solar (CSIQ) Q4 Earnings
• Negative Sentiment: Main catalyst for the decline — Q4 revenue missed and Q1 revenue guidance came in below estimates, prompting the selloff. Canadian Solar Stock Falls After Q4 Revenue Miss, Weak Q1 Outlook
• Negative Sentiment: Market reaction highlighted by headlines that the stock fell ~13% after disappointing Q4 results and a soft Q1 outlook, amplifying downward pressure. Canadian Solar stock tumbles 13% on disappointing Q4 results, soft Q1 outlook
• Negative Sentiment: Q4 EPS missed materially (loss of $1.66 vs. $1.10 expected) and was worse than last year’s loss, underscoring margin pressure and near‑term profitability concerns. Canadian Solar (CSIQ) Reports Q4 Loss, Lags Revenue Estimates
• Negative Sentiment: Press/earnings snapshots and company materials confirm revenue decline (20% YoY) and detailed Q&A on the conference call may have reinforced investor concerns. Canadian Solar: Q4 Earnings Snapshot

Hedge Funds Weigh In On Canadian Solar

A number of institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. lifted its position in shares of Canadian Solar by 20.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 548,853 shares of the solar energy provider’s stock worth $4,748,000 after purchasing an additional 92,002 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its holdings in Canadian Solar by 141.9% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 9,100 shares of the solar energy provider’s stock valued at $100,000 after buying an additional 5,338 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Canadian Solar by 20.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 842,703 shares of the solar energy provider’s stock worth $9,539,000 after buying an additional 145,867 shares during the period. Raymond James Financial Inc. acquired a new position in shares of Canadian Solar during the second quarter worth approximately $33,000. Finally, Balyasny Asset Management L.P. bought a new stake in shares of Canadian Solar in the second quarter valued at approximately $790,000. 52.36% of the stock is currently owned by institutional investors.

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.