DAQO New Energy (NYSE:DQ) Posts Earnings Results, Misses Expectations By $0.30 EPS

DAQO New Energy (NYSE:DQ) announced its quarterly earnings data on Tuesday. The semiconductor company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.48) by ($0.30), RTT News reports. The firm had revenue of $194.15 million during the quarter, compared to the consensus estimate of $61.90 million. DAQO New Energy had a negative return on equity of 3.26% and a negative net margin of 34.50%. During the same period 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 DQ stock opened at $10.36 on Tuesday. DAQO New Energy has a fifty-two week low of $9.89 and a fifty-two week high of $36.59. The stock has a market capitalization of $701.26 million, a P/E ratio of -3.65 and a beta of 0.67. The company has a 50 day moving average price of $11.89 and a 200 day moving average price of $17.42.

Analysts Set New Price Targets

DQ has been the topic of several research reports. The Goldman Sachs Group downgraded DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 target price on the stock. in a research report on Monday, August 24th. JPMorgan Chase & Co. dropped their price target on shares of DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating on the stock in a research note on Friday, July 31st. Weiss Ratings cut DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, October 19th. New Street Research set a $10.00 price objective on DAQO New Energy in a research note on Monday, August 24th. Finally, Zacks Research raised shares of DAQO New Energy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $15.83.

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.