First Solar, Inc.

Company facts

Industry

Semiconductors & Related Devices

Headquarters

Phoenix, Arizona

Most recent report

10-Q, filed Oct 29, 2026

Incorporated

Delaware

Filings on record

1,000+ filings

On EDGAR

CIK 1274494

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 10 sections worth reading, with 2 positive, 6 notable, and 11 negative flags.

• Financial Statements (Item 1)

  Notes reveal material IRS dispute, cash burn, and warranty litigation risks.
  Notable

  • Recorded $46M warranty liability for Series 7 module issues; total estimated losses $40M-$65M.
  • Future revenue backlog of 44.0 GW modules for $13.5B through 2030, excluding India customers.
  Negative

  • International facility operations at risk from tariffs, could lead to impairment or closure.
  • IRS proposed $720.6M adjustment for transfer pricing, years 2016-2021; company will contest.

• Management's Discussion (Item 2)

  MD&A with detailed financial results, segment data, and specific risk disclosures.
  Positive

  • Gross profit margin rose 19.6 points to 57.9% in Q3 2026, driven by Section 45X credits and higher sales prices.
  • Produced 4.3 GW and sold 4.1 GW in Q3 2026, up from 3.6 GW produced but down from 5.3 GW sold in Q3 2025.
  Notable

  • China tightened export controls on tellurium, a key CdTe input; First Solar is sourcing alternatives and applying for licenses.
  • Contracted backlog of 44.0 GW for $13.5B through 2030, with potential $0.5B extra from technology upgrades in 2027-2028.
  Negative

  • Net sales fell 22.8% to $1.2B in Q3 2026 due to 22% lower module volume and customer contract terminations.
  • New U.S. minimum import prices for solar modules ($0.38/W) and cells ($0.22/W) effective December 2026 are expected to boost First Solar's sales.
  • First Solar sued BP Solar for breach of contract over unpaid module purchase orders in September 2025.
  • Manufacturing issues with Series 7 modules increased warranty claims and may hurt reputation and cash flows.
  • Cash and marketable securities fell to $1.6B from $2.9B at year-end 2025 due to supplier payments, capex, and debt repayment.

• Legal Proceedings (Item 1)

  Material customer dispute with $384.6M claims and $175M counterclaim; ongoing patent litigation.
  Notable

  • Patent infringement lawsuits against seven TOPCon manufacturers; ITC case terminated without prejudice, district cases stayed.
  Negative

  • BP Solar dispute with $384.6M termination claims; First Solar recognized $61M revenue while facing $175M counterclaim.

• Risk Factors (Item 1A)

  New tariff and trade-law developments directly affect First Solar's costs and sales.
  Notable

  • First Solar itself filed AD/CVD petitions that resulted in final duties of up to 3,400% on competitors from Southeast Asia, a potential competitive win.
  Negative

  • New Section 301 tariffs of 10-12.5% on modules from key manufacturing hubs (Malaysia, India, Vietnam) directly raise costs for the U.S. market.
  • India's proposed 2027 minimum efficiency rule could block First Solar's CdTe modules from that market, threatening a key growth region.
  • India's import duties on solar modules and cells remain high at 40% and 27.5% respectively, creating a significant cost barrier.

What changed: Sep 2026 vs. Jun 2026

About 3% of FSLR's Sep 2026 10-Q is new information. 11 paragraphs were added, 198 changed, and 31 removed. Below are the most important lines SECSift identified.

• Item 1 83
• Item 2 67
• Item 1A 6
• Item 4 2
• Item 5 2
• Item 6 1