Daqo New Energy Corp. (NYSE:DQ) is a leading manufacturer of high-purity polysilicon, a key material for the global solar photovoltaic (PV) industry. The company recently announced its financial results for the second quarter of 2026, revealing a mix of challenges and positive developments in a difficult market environment.
On August 20, 2026, Daqo New Energy Corp. reported an earnings per share (EPS) of -$1.20. This result missed the consensus analyst estimate of -$0.57. The loss was also wider than the -$1.14 per share reported in the same quarter of the previous year, reflecting ongoing pricing pressures in the solar industry.
Despite the earnings miss, Daqo New Energy Corp. posted quarterly revenue of $62.70 million. This figure surpassed analyst expectations of $52.93 million. The revenue performance shows a significant sequential increase from $26.70 million in the first quarter of 2026, mainly due to a large jump in polysilicon sales volume.
The market conditions remain challenging. CEO Xiang Xu notes that weak demand and high inventory levels pushed prices lower across the solar supply chain. The average selling price for polysilicon fell to $4.04 per kilogram, which is below Daqo New Energy Corp.'s production costs and contributes to the reported net loss.
However, Daqo New Energy Corp. maintains a strong financial position. The company reports a cash and investments balance of $1.92 billion and has zero debt. Its current ratio of 6.02 indicates it has more than enough short-term assets to cover its short-term liabilities, showing solid financial health despite operational losses.
