New York, Feb 25, 2026, 11:16 EST — Regular session
- First Solar shares slid about 16% after the company’s 2026 sales outlook came in below expectations
- Management pointed to tariff costs and slower federal permitting approvals for big solar projects
- Traders are watching policy headlines, new U.S. capacity plans, and the next earnings update in April
First Solar, Inc. (FSLR.O) slid 15.6% to $205.40 by 11:13 a.m. EST on Wednesday, after the U.S. solar panel maker’s latest outlook shook confidence in a near-term rebound. The shares touched $196.45 earlier in the session. (StockAnalysis)
The drop matters because First Solar sits at the intersection of U.S. industrial policy and utility-scale construction timelines. When permits slip and trade rules shift, developers delay orders, and suppliers start talking about factory utilization instead of backlog.
Trade policy is part of the backdrop. The U.S. Commerce Department on Monday set preliminary countervailing duties — tariffs meant to offset government subsidies — on solar imports from India, Indonesia and Laos, a case covering roughly $4.5 billion of shipments, with a final decision expected in July. (Reuters)
After Tuesday’s close, First Solar forecast 2026 net sales of $4.9 billion to $5.2 billion, below the $6 billion average analyst estimate compiled by LSEG, and executives put this year’s tariff impact at $125 million to $135 million. The company cited policy uncertainty and permitting delays under President Donald Trump, and said demand for its Series 6 modules produced in Malaysia and Vietnam remains constrained even as it prepares a U.S. finishing line in South Carolina slated to start production in the fourth quarter. RBC Capital Markets analyst Christopher Dendrinos called the outlook miss a “clearing event,” while Citi’s Vikram Bagri said First Solar is “a 2027 story” with catalysts ahead. (Reuters)
In its earnings release, First Solar reported 2025 net sales of $5.2 billion and fourth-quarter net sales of $1.7 billion, with net income per diluted share of $14.21 for the year and $4.84 for the quarter. For 2026 it guided for 17.0 to 18.2 gigawatts (GW) of volume sold — GW is a measure of product volume in power terms — and adjusted EBITDA of $2.6 billion to $2.8 billion, a profit metric that strips out interest, taxes and some non-cash items. The company also flagged how much its forecast leans on Section 45X tax credits, an advanced manufacturing credit, as it spends to expand U.S. capacity. (Business Wire)
Analysts were quick to reset expectations. Robert W. Baird downgraded First Solar to “Neutral” from “Outperform” and cut its price target to $205, pointing to uncertainty around the company’s forward outlook after the call. (Investing)
The company also pushed a separate technology angle. First Solar said it struck a non-exclusive patent licensing agreement with Oxford PV covering perovskite — a class of semiconductor materials used to absorb light in next-generation solar devices — for potential U.S. thin film-perovskite products, while excluding crystalline-silicon semiconductors; terms were not disclosed. “This agreement allows us to continue pursuing viable pathways to manufacturing and commercializing thin film-perovskite products,” CEO Mark Widmar said. (Business Wire)
Away from earnings, a filing dated Feb. 24 showed First Solar petitioned the U.S. International Trade Commission, alleging that imports of certain TOPCon products infringe its patent — TOPCon is a high-efficiency crystalline-silicon cell design — naming, among others, affiliates of Canadian Solar, JA Solar and JinkoSolar. The filing said First Solar is seeking an import ban through an exclusion order, and noted a separate U.S. Patent and Trademark Office decision tied to one patent reexamination is due on March 15. (SEC)
But the near-term path is still messy. If permitting delays keep dragging and tariff costs run higher than planned, First Solar could be stuck running capacity below potential for longer, pressuring margins even with tax credits and planned U.S. finishing work.
The next hard checkpoint is April 23, when First Solar is due to report again, and investors will be looking for any shift in demand timing, tariff exposure and project approvals that could change the 2026 story. (Investing)
