Canadian Solar shares slip after Q2 earnings miss and cautious outlook

Canadian Solar Inc. (NASDAQ:CSIQ) shares fell 3.75% in pre-market trading on Thursday after the solar and energy storage company reported a wider-than-expected second-quarter loss and issued third-quarter revenue guidance below Wall Street forecasts. However, quarterly revenue came in slightly ahead of expectations.

The company recorded a second-quarter loss of $1.40 per share, compared with the analyst consensus for a loss of $0.74. Revenue totalled $1.2 billion, exceeding the $1.18 billion forecast, although it declined 29% from $1.69 billion in the same period last year.

Third-quarter guidance falls below forecasts

Canadian Solar expects third-quarter revenue to range between $1.3 billion and $1.5 billion. At the midpoint, guidance of $1.4 billion is below the analyst consensus of $1.76 billion, contributing to the negative initial reaction from investors.

Profitability was also under pressure during the second quarter. Gross margin declined to 13.9% from 29.8% a year earlier, primarily reflecting the absence of tariff refund benefits recognised in the previous quarter.

Net loss attributable to shareholders reached $77 million, compared with net income of $7 million during the second quarter of 2025.

Canadian Solar advances technology strategy

Despite the near-term financial pressures, Canadian Solar continues to invest in its longer-term technology and manufacturing strategy as it looks to strengthen its position across the global solar market.

“We are executing on a multidimensional solar technology roadmap, spanning advanced cell innovations to next-generation applications,” said Colin Parkin, CEO of Canadian Solar.

The company recently reached an important manufacturing milestone in the United States with the opening of its new heterojunction technology solar cell facility.

“In July, we celebrated the official opening of our state-of-the-art HJT solar cell factory, marking a historic milestone, as Canadian Solar became not only the first commercially operational HJT manufacturer in the United States, but also a meaningful contributor to the local economy and community development.”

Manufacturing expansion supports longer-term ambitions

While the earnings miss and softer third-quarter outlook weighed on Canadian Solar shares, the company’s revenue performance demonstrated some resilience by exceeding analyst expectations.

Management’s continued investment in advanced solar cell technology and domestic U.S. manufacturing also provides a longer-term growth opportunity. The newly opened HJT facility represents a significant step in Canadian Solar’s technology roadmap as the company works to expand its capabilities and position itself for future demand across the solar energy market.

Canadian Solar stock price