First Solar, Inc. (NASDAQ:FSLR) shares slipped after the solar manufacturer delivered mixed quarterly results and outlined a cautious outlook tied to policy and trade uncertainty.
Management highlighted ongoing tariff pressures and a disciplined booking strategy even as it expands U.S. manufacturing and advances next-generation solar technology.
Earnings Snapshot
On Tuesday, the company reported earnings of $4.84 per share, which missed the consensus estimate of $5.14.
Quarterly sales of $1.68 billion, which beat the Street estimate of $1.56 billion and were up from $1.51 billion in the same period last year. First Solar said the increase was driven by an increase in the volume of modules sold in the fourth quarter.
First Solar sees fiscal 2026 revenue in a range of $4.9 billion to $5.2 billion, versus the $6.12 billion analyst estimate.
Analyst Ratings
Susquehanna analyst Biju Perincheril maintains a Positive rating on the stock, lowering the price target from $292 to $280.
Baird analyst Ben Kallo downgrades First Solar from Outperform to Neutral and lowers the price target from $264 to $205.
RBC Capital analyst Christopher Dendrinos maintains an Outperform rating, lowering the price target from $258 to $236.
Conference Call Takeaways
In its quarterly conference call, the firm laid out its 2026 roadmap after closing 2025 with record module sales.
Executives emphasized policy uncertainty, tariff pressure, and growing demand for U.S. supply.
Bookings And Backlog: CEO Mark Widmar said the company stayed “selective” on contracting during a volatile year.
He said recent bookings strengthened the earnings profile inside the backlog.
“Since our last earnings call, we secured gross bookings of 2.3 GW, excluding domestic India volume and 0.1 GW of low-bin inventory clearance. We booked one gigawatt in our key U.S. utility scale market at an ASP of $0.364 per watt, inclusive of applicable adjusters,” Widmar said.
Policy and Trade Backdrop: The CEO also pointed to evolving tariffs, Section 232 actions and foreign-entity restrictions as key variables.
He also cited ongoing AD/CVD probes and increasing enforcement against China-linked solar supply chains.
“If this ruling is maintained, which appears increasingly likely, amounting contingent liabilities for AD/CVD duties associated with this unlawful two-year moratorium could represent an as of yet unrealized material financial impact on those foreign producers that relied on it,” the CEO said.
Manufacturing Expansion: The firm said First Solar began commercial production in Louisiana, its fifth U.S. factory.
It also outlined plans for a South Carolina finishing site to support domestic content.
“By 2027, U.S. finishing capacity is forecast to be 3.5 GW, with a remaining Southeast Asia capacity of 1.8 GW for fully finished International Series 6 modules. With projected U.S. nameplate capacity of 14.9 GW in 2026, growing to 17.1 GW in 2027, with the scaling of Louisiana and South Carolina, we expect global nameplate capacity of 19 GW in 2026 and 22.1 GW in 2027,” said CFO Alex Bradley.
First Solar also highlighted the CuRe semiconductor platform and said the company plans a factory-by-factory conversion.
FSLR Price Action: First Solar shares are trading lower by 12.91% to $211.81 at last check on Wednesday.
Photo: Shutterstock
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