Canadian Solar (NASDAQ:CSIQ) Announces Earnings Results

Canadian Solar (NASDAQ:CSIQ) released its earnings results on Thursday. The solar energy provider reported ($1.40) EPS for the quarter, missing analysts’ consensus estimates of ($0.18) by ($1.22), FiscalAI reports. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.17 billion. Canadian Solar had a negative return on equity of 5.55% and a negative net margin of 3.73%.Canadian Solar’s revenue was down 28.7% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.53) EPS.

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 Price Performance

NASDAQ CSIQ opened at $13.14 on Friday. The company has a market cap of $892.21 million, a PE ratio of -3.42 and a beta of 1.52. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.81 and a current ratio of 1.06. Canadian Solar has a 52-week low of $9.41 and a 52-week high of $34.59. The firm’s 50 day moving average price is $14.95 and its 200-day moving average price is $16.09.

Hedge Funds Weigh In On Canadian Solar

A number of large investors have recently added to or reduced their stakes in CSIQ. Two Sigma Investments LP bought a new position in shares of Canadian Solar during the 3rd quarter worth approximately $11,544,000. JPMorgan Chase & Co. boosted its stake in Canadian Solar by 206.6% in the third quarter. JPMorgan Chase & Co. now owns 571,893 shares of the solar energy provider’s stock valued at $7,457,000 after acquiring an additional 385,355 shares in the last quarter. Deutsche Bank AG purchased a new position in Canadian Solar in the fourth quarter worth $9,003,000. Invesco Ltd. lifted its holdings in shares of Canadian Solar by 19.3% during the 3rd quarter. Invesco Ltd. now owns 2,200,622 shares of the solar energy provider’s stock valued at $28,696,000 after purchasing an additional 356,625 shares during the last quarter. Finally, Voloridge Investment Management LLC purchased a new position in Canadian Solar during the 4th quarter worth $6,013,000. 52.36% of the stock is currently owned by institutional investors.

Trending Headlines about Canadian Solar

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

• Positive Sentiment: Energy-storage shipments reached 3.7 GWh, exceeding the company’s 2.8–3.2 GWh guidance and reportedly rising 73% year over year. This growth provides a potential offset to weakness in the solar-module business. Canadian Solar Reports Second Quarter 2026 Results
• Positive Sentiment: Second-quarter revenue of $1.21 billion exceeded the roughly $1.17 billion analyst estimate, although the increase was not enough to offset the earnings shortfall. Canadian Solar Beats on Revenue, But Investors Face Softer Q3 Setup
• Neutral Sentiment: Mizuho lowered its price target from $18 to $17 and maintained a neutral rating. The revised target still implies substantial upside from recent levels, but the reduction reflects ongoing execution and profitability concerns. Benzinga analyst update
• Negative Sentiment: Canadian Solar reported a second-quarter loss of $1.40 per share, far worse than analyst expectations and the $0.53 loss recorded a year earlier. Revenue fell 28.7% year over year, while lower solar-module sales contributed to the downturn. Canadian Solar Posts Q2 2026 Loss
• Negative Sentiment: Management guided third-quarter revenue to $1.3–$1.5 billion, below the approximately $1.7 billion consensus estimate, signaling continued demand and margin pressure. The CEO also warned that the U.S. factory ramp-up could weigh further on profits. Canadian Solar CEO Warns of More Profit Pressure
• Negative Sentiment: GLJ Research reaffirmed a sell rating with a $5.58 price target, reinforcing bearish sentiment after the earnings release. Benzinga analyst update

Analyst Upgrades and Downgrades

CSIQ has been the subject of several recent analyst reports. Citigroup dropped their target price on shares of Canadian Solar from $18.00 to $15.00 and set a “neutral” rating for the company in a report on Thursday. Glj Research reiterated a “sell” rating and set a $5.58 price objective on shares of Canadian Solar in a research report on Thursday. Weiss Ratings downgraded shares of Canadian Solar from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday. Freedom Capital lowered shares of Canadian Solar from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 19th. Finally, Wall Street Zen cut shares of Canadian Solar from a “sell” rating to a “strong sell” rating in a research note on Saturday. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Canadian Solar has a consensus rating of “Reduce” and an average target price of $17.75.

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.