Canadian Solar (NASDAQ:CSIQ) shares surged more than 8% in premarket trading on Thursday after the company reported first-quarter results that exceeded analyst expectations and issued strong forward guidance despite difficult industry conditions.
The solar and battery storage company posted a quarterly loss of $0.71 per share for the period ended March 31, outperforming analyst forecasts for a loss of $0.82 per share.
Revenue came in at $1.1 billion, above the consensus estimate of $950.39 million, although sales declined 10% compared with the same quarter last year.
Battery Storage Growth Supports Revenue Performance
Canadian Solar said lower solar module sales were partially offset by stronger battery energy storage system revenue during the quarter.
Gross margin improved sharply to 25.1%, compared with 11.7% in the first quarter of 2025, primarily driven by the recognition of $93 million in IEEPA tariff refund benefits.
The company shipped 2.5 GW of solar modules and 2.1 GWh of battery energy storage systems during the quarter, both ahead of management guidance ranges.
Leadership Transition Announced
Canadian Solar also revealed a management transition, with Colin Parkin taking over as chief executive officer, while founder Shawn Qu will move into the roles of executive chairman and chief technology officer.
Company Issues Optimistic Second-Quarter Forecast
For the second quarter of 2026, Canadian Solar expects revenue between $1.0 billion and $1.2 billion, with the midpoint broadly matching first-quarter performance.
The company forecast gross margin in a range of 13% to 15%, solar module shipments between 3.1 GW and 3.3 GW, and battery energy storage shipments between 2.8 GWh and 3.2 GWh.
“We began the year with strong execution, exceeding guidance across all metrics,” said Colin Parkin, CEO of Canadian Solar.
Full-Year U.S. Shipment Guidance Reaffirmed
The company maintained its full-year 2026 outlook for the U.S. market, projecting solar module shipments of between 6.5 GW and 7.0 GW, alongside battery energy storage deployments of between 4.5 GWh and 5.5 GWh.