Canadian Solar Inc. (NASDAQ:CSIQ) surged more than 12% in premarket trading on Thursday after reporting third-quarter revenue that surpassed expectations, powered by record performance in its battery energy storage business.
The company generated $1.5 billion in revenue, beating analyst estimates of $1.37 billion and hitting the upper end of its outlook. Its gross margin of 17.2% also came in above the guided range of 14% to 16%. However, adjusted earnings per share were -$0.58, missing the consensus forecast of -$0.42.
A major highlight of the quarter was Canadian Solar’s e-STORAGE division, which delivered 2.7 GWh of battery energy storage shipments, well above the 2.1–2.3 GWh guidance. The unit’s contracted backlog expanded to $3.1 billion as of October 31, 2025, underscoring sustained demand visibility.
“Third quarter revenue was at the high end of guidance, while gross margin exceeded expectations, supported by strong energy storage deliveries and a high mix of module shipments to profitable markets,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar. “Demand for energy storage continues to grow, driven by emerging applications such as data centers.”
Module shipments recognized as revenue totaled 5.1 GW, down sharply both quarter-over-quarter (-35%) and year-over-year (-39%). Despite lower volumes, the company’s emphasis on higher-margin geographies helped preserve profitability.
For the fourth quarter, Canadian Solar expects revenue between $1.3 billion and $1.5 billion, with gross margins remaining in the 14% to 16% range. Looking into 2026, the company forecasts 25–30 GW of module shipments and 14–17 GWh of battery storage shipments.
Progress continues on its U.S. manufacturing buildout. The firm’s Indiana solar cell plant is slated to start production in March 2026, followed by the launch of its Kentucky lithium battery storage facility in December 2026.
“We will continue to focus on profitable solar markets and to manage volumes in less profitable regions,” added Dr. Qu. “Financial prudence remains our top priority.”