Source: davit kirakosyan
Canadian Solar Surpasses Wall Street Expectations in Q3 Revenue
Canadian Solar Inc. (NASDAQ: CSIQ), a leading global provider of solar energy solutions, reported an impressive third-quarter revenue that outpaced Wall Street’s expectations. The company’s performance was buoyed by a record volume of battery energy storage shipments and a strategic focus on high-margin markets.
The company’s financial robustness in the third quarter goes to show the effectiveness of its strategic initiatives and the resilience of its diversified business model. This article will delve into the details of Canadian Solar’s Q3 performance and its future projections.
Q3 Financial Performance: A Closer Look
Canadian Solar posted a quarterly revenue of $1.5 billion, a figure that beat analysts’ forecasts of $1.37 billion and reached the upper end of its guidance range. This substantial revenue growth demonstrates the company’s unwavering commitment to delivering high-quality solar energy solutions and its successful penetration into profitable markets.
However, the company’s adjusted earnings per share (EPS) fell short of expectations, registering a loss of $0.58 as against the consensus estimate of a $0.42 loss. Despite the reported loss, it’s crucial to note that Canadian Solar’s gross margin showed significant improvement, rising to 17.2%. This exceeded its guidance of 14%–16% and underlines the company’s robust operational efficiency and stringent cost management.
Record Battery Energy Storage Shipments
Canadian Solar’s e-STORAGE division achieved a notable milestone in the third quarter, recording battery energy storage shipments of 2.7 GWh. This figure is significantly above its prior guidance of 2.1 GWh to 2.3 GWh. The company’s e-STORAGE division has been a key player in the company’s growth strategy, and its success is indicative of the rising global demand for renewable energy storage solutions.
Further, the unit’s contracted backlog expanded to a whopping $3.1 billion as of October 31, 2025, showcasing a promising pipeline of projects and potential revenue.
Module Shipments and Q4 Projections
In terms of module shipments, the company recognized revenue for 5.1 GW, which represented a 35% sequential decrease and a 39% year-over-year decline. Despite this dip in volume, the profitability was supported by strong performance in premium markets. This indicates that Canadian Solar is effectively navigating market dynamics and maintaining a strong position in lucrative segments.
Looking forward to the fourth quarter, Canadian Solar projected a revenue range between $1.3 billion and $1.5 billion, with gross margins expected to lie within the 14%–16% range. This forecast suggests that the company is poised to maintain its financial stability despite the ongoing market challenges.
Future Outlook: Aiming for Growth
Canadian Solar also offered a glimpse into its future plans. The company is forecasting total module shipments of 25 GW to 30 GW and battery energy storage shipments between 14 GWh and 17 GWh by 2026. These ambitious projections underscore Canadian Solar’s confidence in its growth strategy and its commitment to playing a dominant role in the global movement towards renewable energy.
In conclusion, Canadian Solar’s third-quarter performance cements its position as a leader in the solar energy industry. Despite the challenges presented by the global market, the company’s strategic focus on high-margin markets and record battery storage shipments have contributed to a strong financial performance. As the company continues to innovate and evolve, its future in the renewable energy sector is undoubtedly bright.