DAQO New Energy (NYSE:DQ) Releases Quarterly Earnings Results

DAQO New Energy (NYSE:DQ) issued its quarterly earnings results on Tuesday. The semiconductor company reported ($0.78) earnings per share for the quarter, missing the consensus estimate of ($0.48) by ($0.30), RTT News reports. DAQO New Energy had a negative return on equity of 3.26% and a negative net margin of 34.50%. The company had revenue of $194.15 million for the quarter, compared to analysts’ expectations of $61.90 million. During the same quarter last year, the company earned ($0.22) EPS.

Here are the key takeaways from DAQO New Energy’s conference call:

• Q3 revenue rose to $194.2 million from $62.7 million in Q2 as sales volume surged to 46,910 metric tons; the net loss narrowed to $52.9 million from $81.2 million sequentially.
• The company remained unprofitable, reporting a gross loss of $60.6 million and a gross margin of negative 31%, compared with a profit and 4% gross margin in Q3 2025.
• Daqo plans to reduce or flex production amid elevated industry inventories of roughly 700,000 metric tons, guiding Q4 production to 35,000–45,000 metric tons while targeting shipments above production to reduce inventory.
• Manufacturing improvements lowered Q3 total production cost by 9.7% sequentially to a record-low $5.37 per kilogram, while the company maintained a debt-free balance sheet and approximately $2.06 billion in readily convertible assets.
• The company is expanding into AI data-center power infrastructure, including integrated electrical equipment, with about CNY 1 billion of expected 2027 capital expenditure, potential revenue beginning in 2027, and projected gross margins of 15%–20%.

DAQO New Energy Stock Performance

Shares of NYSE:DQ opened at $10.93 on Thursday. The business’s 50-day simple moving average is $11.77 and its 200 day simple moving average is $17.25. The company has a market cap of $739.39 million, a P/E ratio of -3.85 and a beta of 0.67. DAQO New Energy has a one year low of $9.89 and a one year high of $36.59.

More DAQO New Energy News

Here are the key news stories impacting DAQO New Energy this week:

• Positive Sentiment: Third-quarter revenue surged to $194.2 million from $62.7 million in the prior quarter, while polysilicon sales volume more than tripled to 46,910 metric tons. The company also reduced its gross loss to $60.6 million from $82.7 million and improved EBITDA to negative $9.2 million from negative $29.3 million. Daqo New Energy Announces Unaudited Third Quarter 2026 Financial Results
• Positive Sentiment: Production costs declined to $5.37 per kilogram, cash costs fell to $4.23 per kilogram, and the average selling price improved modestly to $4.12 per kilogram. Daqo also ended the quarter with approximately $2.06 billion in cash and investments, providing financial flexibility while the polysilicon industry moves closer to a potential bottom. Daqo narrows losses in Q3 as polysilicon sector bottoms out
• Neutral Sentiment: JPMorgan lowered its DQ price target from $22.00 to $18.50 but maintained an Overweight rating. The revised target still implies substantial upside, although the reduction reflects ongoing concerns about industry pricing and profitability. JPMorgan Chase Daqo New Energy rating
• Negative Sentiment: Daqo reported a third-quarter loss of $0.78 per ADS, wider than the $0.48 consensus estimate and versus a $0.22 loss a year earlier. Gross margin remained deeply negative at 31.2%, and revenue, while sharply higher sequentially, was below the prior-year level of $244.6 million. Daqo New Energy Q3 results deepen focus on margin losses

Analyst Ratings Changes

A number of research analysts recently issued reports on DQ shares. Zacks Research upgraded DAQO New Energy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 29th. JPMorgan Chase & Co. cut their price objective on DAQO New Energy from $22.00 to $18.50 and set an “overweight” rating for the company in a research report on Wednesday. The Goldman Sachs Group downgraded shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price target on the stock. in a report on Monday, August 24th. Weiss Ratings cut shares of DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, October 19th. Finally, New Street Research set a $10.00 target price on DAQO New Energy in a research report on Monday, August 24th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $13.73.

DAQO New Energy Company Profile

Daqo New Energy Corp. (NYSE: DQ) is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company’s production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China’s extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.