Canadian Solar (NASDAQ:CSIQ) Shares Gap Down on Disappointing Earnings

Shares of Canadian Solar Inc. (NASDAQ:CSIQ) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $18.52, but opened at $13.80. Canadian Solar shares last traded at $13.1950, with a volume of 4,239,022 shares trading hands.

The solar energy provider reported ($1.66) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.10) by ($0.56). Canadian Solar had a negative return on equity of 5.28% and a net margin of 0.27%.The business had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.37 billion. During the same period in the prior year, the company earned $0.48 earnings per share. The firm’s quarterly revenue was down 20.0% compared to the same quarter last year.

More Canadian Solar News

Here are the key news stories impacting Canadian Solar this week:

• Positive Sentiment: Canadian Solar won a 500 MW battery storage deal with a U.S. utility, highlighting growth in energy storage that can help diversify revenue beyond modules. Canadian Solar snags 500 MW battery storage deal with U.S. utility
• Positive Sentiment: Mizuho upgraded CSIQ to Neutral, a modest vote of confidence that could cap further downdraft if sentiment stabilizes. Mizuho Upgrades Canadian Solar (NASDAQ:CSIQ) to Neutral
• Positive Sentiment: Full-year 2025 operational highlights: 24.3 GW of module shipments and record 8.1 GW shipped to the U.S., which supports longer-term sales capacity despite near-term weakness. Canadian Solar Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: The company’s Q4 earnings call transcript and slide deck are available for investors to assess management’s explanations and plans; the transcript provides detail on margins, region-specific demand and product mix. Canadian Solar Inc. (CSIQ) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Reported short-interest data in some feeds shows zero shares, likely a data anomaly; short-interest does not appear to explain the move. (Reported internally)
• Negative Sentiment: Q4 results missed expectations: CSIQ reported a net loss of $86M, EPS of ($1.66) vs. consensus around ($1.10), and revenue of $1.22B vs. ~$1.37B expected — the miss is the primary catalyst for the selloff. Canadian Solar posts $1.2 billion in Q4 revenue, missing analyst targets
• Negative Sentiment: Management blamed a prolonged sector downturn and regulatory headwinds; weak Q1 revenue guidance came in below estimates, increasing near-term earnings risk and prompting heavy selling. Canadian Solar Stock Falls After Q4 Revenue Miss, Weak Q1 Outlook
• Negative Sentiment: The earnings shock produced sharp intraday declines (pre-market and morning headlines noted double-digit drops), increasing volatility and short-term downside risk. Canadian Solar stock tumbles on bigger-than-expected Q4 loss
• Negative Sentiment: An investor law firm announced an investigation into potential claims, which could prolong uncertainty and pressure the stock if it leads to litigation. Canadian Solar Shareholders Are Encouraged to Reach Out to Johnson Fistel

Analyst Ratings Changes

Several analysts recently weighed in on CSIQ shares. Daiwa Securities Group upgraded Canadian Solar from a “neutral” rating to an “outperform” rating and set a $30.00 price target on the stock in a research note on Tuesday, December 2nd. Mizuho raised Canadian Solar from an “underperform” rating to a “neutral” rating and cut their target price for the stock from $21.00 to $19.00 in a research note on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Canadian Solar in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $19.63.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CSIQ. Polunin Capital Partners Ltd purchased a new position in shares of Canadian Solar during the fourth quarter valued at approximately $43,692,000. Two Sigma Investments LP purchased a new stake in Canadian Solar in the third quarter worth approximately $11,544,000. Mackenzie Financial Corp boosted its holdings in Canadian Solar by 7.4% in the second quarter. Mackenzie Financial Corp now owns 5,884,865 shares of the solar energy provider’s stock worth $64,969,000 after purchasing an additional 405,800 shares during the last quarter. JPMorgan Chase & Co. grew its position in Canadian Solar by 206.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 571,893 shares of the solar energy provider’s stock worth $7,457,000 after purchasing an additional 385,355 shares during the period. Finally, Tudor Investment Corp ET AL bought a new stake in Canadian Solar in the 3rd quarter worth approximately $5,008,000. Hedge funds and other institutional investors own 52.36% of the company’s stock.

Canadian Solar Stock Performance

The business’s 50 day simple moving average is $19.55 and its two-hundred day simple moving average is $19.57. The firm has a market capitalization of $906.10 million, a PE ratio of -37.58 and a beta of 1.31. The company has a current ratio of 1.07, a quick ratio of 0.86 and a debt-to-equity ratio of 0.93.

Canadian Solar Company Profile

Canadian Solar Inc (NASDAQ: CSIQ) is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world’s largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.