Shares of Canadian Solar (NASDAQ: CSIQ) surged 7.07% in intraday trading on Thursday after the company reported better-than-expected first-quarter results and provided an upbeat outlook for the second quarter.

The solar panel and battery storage company posted a revenue of $1.2 billion for Q1 2025, surpassing analyst estimates of $1.1 billion. While the company reported an adjusted loss per share of $1.07, it was narrower than the expected loss of $1.10 per share. Despite the overall loss, investors were encouraged by the company's performance in a challenging market environment.

Adding to the positive sentiment, Canadian Solar provided a strong revenue forecast for the second quarter. The company expects Q2 revenue to be in the range of $1.9 billion to $2.1 billion, significantly above the analysts' consensus estimate of $1.76 billion. This optimistic outlook suggests potential for improved financial performance in the coming months.

Furthermore, Canadian Solar highlighted the growing potential of its battery energy storage business. The company reported an expansion of its e-STORAGE pipeline to a record 91 GWh, including a $3.2 billion contracted backlog as of March 31, 2025. This robust pipeline in the energy storage segment has likely contributed to investor enthusiasm, as it represents a promising growth avenue for the company in the evolving renewable energy landscape.

The stock's strong performance today reflects investor optimism about Canadian Solar's ability to navigate current market challenges and capitalize on opportunities in the solar and energy storage sectors. However, investors should remain cautious, as the company still faces headwinds from ongoing industry pricing pressures and geopolitical uncertainties.