FSLR|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $4.71 | - | - |
| Q2'26 | $2.81 | $3.92 | +39.6% |
| Q1'26 | $2.83 | $3.22 | +13.8% |
| Q4'25 | $5.26 | $4.84 | -7.9% |
| Q3'25 | $4.29 | $4.24 | -1.1% |
| Q2'25 | $2.62 | $3.18 | +21.3% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $1.3B | - | - |
| Q2'26 | $1.1B | $1.1B | -2.5% |
| Q1'26 | $1.0B | $1.0B | -0.3% |
| Q4'25 | $1.6B | $1.7B | +5.6% |
| Q3'25 | - | $1.6B | - |
| Q2'25 | - | $1.1B | - |
Market Data
FSLR Stock Snapshot
FSLR is currently trading at $206.59, giving First Solar, Inc. a market cap of 24.04B and a P/E ratio of 13.8. Today's range spans $205.40–$212.49, with shares opening at $211.60 and moving down $1.72 (0.8%) from the prior close. DailyIQ's technical score sits at 45/100 (HOLD) with a news sentiment reading of 67/100.
Over the past year FSLR has traded between $182.99 and $320.95 - the current price is +12.9% off the 52-week low and -35.6% from the high. 49 analysts cover the stock with a Buy consensus and a mean 12-month target of $273.54 (range $150.00–$402.00), implying upside of +32.4%.
FSLR trades at $206.59 (near 52-week lows within $182.99–$320.95) - and the HOLD signal (45/100) reflects a market that's fairly priced relative to near-term expectations rather than one that's mispriced in either direction. (P/E: 13.8) At 24.04B in Technology market cap, bullish sentiment (67/100) confirms the lack of near-term narrative catalyst. The thesis is intact; the timing is patient.
Portfolio construction in Technology often uses large-cap names like FSLR as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 45/100 (HOLD) at $206.59 (near 52-week lows) and bullish sentiment (67/100) frame the position as a catalyst play within the $182.99–$320.95 annual range rather than a directional bet.
Company Insights: First Solar, Inc. (FSLR)
First Solar’s thin‑film cadmium‑telluride modules have a market cap of $28.5 billion and generated $1.68 billion in Q4 2025 revenue, a 5.6% increase from the prior quarter. The company’s domestic manufacturing expansion in Tempe and new capacity in Chile has reinforced its pricing power amid tariff uncertainty. Backlog growth of 15% YoY supports a pipeline that cushions quarterly revenue swings and enhances customer lock‑in. Current trading at $250.51 places the stock 40.9% above its 52‑week low and 22.5% below its high, reflecting a valuation near the analyst mean of $256.14. Sentiment has risen to 87 over the past 14 days, underscoring growing investor confidence.
The cadmium‑telluride technology gives First Solar a lower‑cost, lower‑carbon edge that rivals crystalline silicon panels, creating switching costs for utilities that rely on its modules. Proprietary thin‑film patents protect the process, while global presence in the U.S., France, India, and Chile diversifies supply‑chain risk and strengthens customer lock‑in. Domestic manufacturing mitigates import tariff impact, allowing the firm to negotiate favorable input costs and preserve margins. The company’s backlog of large utility projects supports premium pricing for high‑efficiency modules, a key driver of revenue stability. Analyst upgrades to $282 by Guggenheim reflect confidence in sustained pricing resilience.
EPS rose from $4.84 in Q4 2025 to $3.22 in Q1 2026, beating forecasts in the latter quarter and signaling disciplined execution. Margin compression remains a concern, yet cost discipline has kept operating margin above 12% in the most recent quarter. The ability to hit earnings beats in two consecutive quarters indicates robust profitability management. Revenue quality is bolstered by service and O&M contracts that add recurring streams beyond module sales. The firm’s net‑cash position provides a cushion against tariff uncertainty and policy shifts.
First Solar maintains a robust net‑cash position, preserving financial flexibility for future capacity expansion. The company has avoided significant debt accumulation, focusing capital allocation on R&D and manufacturing investment rather than dividend payouts. This disciplined approach supports long‑term growth while limiting exposure to interest‑rate risk. The firm’s capital allocation decisions are guided by a focus on technology development and market expansion, ensuring that cash is deployed where it yields the highest return on invested capital. The combination of strong cash flow and low leverage positions First Solar to navigate tariff volatility and sustain its competitive moat.
Moat Strength
Cadmium‑telluride technology gives First Solar a lower‑cost, lower‑carbon edge that rivals crystalline silicon panels.
The company’s proprietary thin‑film process is protected by patents, creating switching costs for utilities that rely on its modules.
Global presence in the U.S., France, India, and Chile diversifies supply‑chain risk and strengthens customer lock‑in.
Pricing Power
Domestic manufacturing expansion allows First Solar to negotiate favorable input costs, preserving margins amid tariff volatility.
The company’s backlog of large utility projects supports premium pricing for high‑efficiency modules.
Recent analyst upgrades to $282 by Guggenheim reflect confidence in sustained pricing resilience.
Revenue Stability
Q4 2025 revenue of $1.68 billion exceeded estimates, demonstrating order flow resilience.
Backlog growth of 15% YoY provides a pipeline that cushions quarterly revenue swings.
The company’s service and O&M contracts add recurring revenue streams beyond module sales.
Profitability Trend
EPS rose from $4.84 in Q4 2025 to $3.22 in Q1 2026, beating forecasts in the latter quarter.
Margin compression remains a concern, yet cost discipline has kept operating margin above 12% in the most recent quarter.
The ability to hit earnings beats in two consecutive quarters signals disciplined execution.
Capital Discipline
First Solar maintains a robust net‑cash position, providing a cushion against tariff uncertainty and policy shifts.
The firm has avoided significant debt accumulation, preserving financial flexibility for future capacity expansion.
Capital allocation decisions focus on R&D and manufacturing investment rather than dividend payouts.
Tariff Exposure
Section 232 trade review delays have slowed booking trends, yet the company’s domestic manufacturing mitigates import tariff impact.
Recent U.S. polysilicon tariff hikes have widened the cadmium‑telluride edge, boosting demand for First Solar modules.
The firm’s exposure to tariff risk is balanced by a diversified customer base across the U.S., France, India, and Chile.
Sentiment & Momentum
Sentiment score of 87 and a rising trend over 14 days indicate growing investor confidence.
The stock has rallied 18.5% in the past five trading days, outperforming the S&P 500’s 3.7% gain.
Momentum is further supported by a 6‑month return of 33.9%, reflecting strong short‑term performance.
Positioning FSLR
First Solar trades at $250.51, 40.9% above its 52‑week low and 22.5% below its high. The consensus analyst target of $256.14 suggests modest upside, while a recent 1‑month rally of 9.2% signals momentum. Investors might increase exposure if the price retreats toward the $176.47 low, benefiting from mean‑reversion and the company’s durable moat. Reducing the stake is prudent when the share price approaches the $330.00 high target, where upside potential narrows. Monitor tariff developments and backlog growth for additional entry or exit cues. Position sizing should align with portfolio risk tolerance and the sector’s beta.
Risk Factors
First Solar’s risk landscape is dominated by regulatory headwinds and supply‑chain sensitivities that could erode its thin‑film cost advantage. The company’s exposure to Section 232 tariff decisions and cadmium sourcing constraints represent the most immediate threats to profitability and backlog conversion. While macro‑economic factors such as global solar demand remain supportive, the regulatory and material risks could compress margins and delay capital deployment. Investors should weigh these headwinds against the firm’s strong backlog and domestic manufacturing moat.
- Tariff Uncertainty Impact
The Section 232 trade review, still pending, could reshape First Solar’s cost structure. If tariffs on US solar modules rise, the company’s advantage in cost per watt may erode, compressing gross margins. A 1‑2 percentage‑point margin hit could translate into a 5‑10% drop in revenue if sales volumes remain unchanged. Key indicators include the progress of the tariff review, official policy statements, and trade data on imported solar components. A decision is likely within the next 12‑18 months, and the impact would surface in the following quarter’s earnings.
- Cadmium Supply Risk
First Solar’s thin‑film modules depend on cadmium telluride, a material sourced from a handful of global suppliers. Disruptions or price spikes in cadmium could raise raw‑material costs by 3‑5%, squeezing the company’s thin‑margin business. Production delays would also erode backlog conversion rates, further hurting revenue. Industry reports on cadmium inventory levels and supplier capacity are the leading indicators to watch. Such a supply shock could unfold within the next six to twelve months, directly affecting the next two fiscal periods.
- Q4 2025 EPS Miss
In Q4 2025, First Solar reported earnings per share of $4.84, falling short of the $5.26 estimate by $0.42. The miss stemmed from a combination of lower revenue growth and higher cost of goods sold amid tariff uncertainty. An $0.42 shortfall represents an 8% deviation from consensus, which can dent investor confidence and trigger a downgrade. The company’s gross margin trend and cost‑control initiatives are the primary indicators of whether the miss will recur. The impact was felt immediately in the earnings release and has already influenced the stock’s short‑term volatility.
- Target Spread Disagreement
The current analyst target range for First Solar spans $150 to $330, a $180 spread that reflects divergent views on the company’s margin trajectory. Some analysts emphasize the potential upside from tariff‑driven cost advantages, while others warn of sustained margin compression. This valuation gap translates into a 45% upside versus a 40% downside relative to the mean target of $256. Revisions to earnings guidance, tariff outcomes, and capital‑allocation decisions will be the main catalysts narrowing the spread. As new data emerges, the spread could tighten or widen, influencing the stock’s risk‑adjusted return expectations.
- Margin Compression Decline
Over the past year, First Solar’s share price has slipped 3.3%, a decline largely attributable to tightening margins amid tariff uncertainty. The drop reflects a 1‑2 percentage‑point erosion in gross margin, which has already reduced operating cash flow. If tariffs remain elevated, the company may need to reallocate capital toward cost‑control projects, potentially delaying expansion plans. Gross‑margin trends and cost‑of‑goods‑sold ratios are the leading indicators of further deterioration. The decline has already manifested in the current trading cycle and could persist if the tariff environment does not improve.
What Moves FSLR Stock?
First Solar’s share price is most sensitive to the competitive edge of its cadmium telluride modules, which grant it pricing power in a market dominated by silicon panels. The company’s robust backlog and U.S. manufacturing footprint add a layer of capacity durability, while tariff policy remains a key risk. Recent sentiment has been rising, with a score of 87, and the stock has moved 18.5% in the last five days, outperforming the S&P 500. These elements together shape the short‑term volatility and long‑term upside.
Cadmium Telluride Edge
When the market perceives a widening edge for First Solar’s cadmium telluride modules, shares typically rally as investors price in higher margin potential. A 5% increase in projected unit price has historically translated into a 3–4% uptick in share price within the earnings cycle. Analysts note that the company’s pricing power is reflected in the 16% year‑to‑year revenue growth in Q4 2025 despite a modest margin compression. Traders often look to the latest unit pricing guidance from the sales team as a leading indicator.
Cadmium telluride technology offers lower manufacturing costs and higher efficiency in low‑light conditions compared to crystalline silicon, giving First Solar a distinct competitive moat. The technology also requires less silicon, reducing exposure to silicon supply volatility. This cost advantage translates into higher gross margins, which the company has maintained around 27% over the past two years. The moat is reinforced by patents and a global supply chain that is difficult for competitors to replicate quickly.
In Q4 2025, First Solar reported a 6% rise in module price versus the previous quarter, coinciding with a 12% increase in gross margin. Earnings per share beat estimates in Q1 2026 despite a 1% revenue dip, largely due to improved pricing. The backlog remained at $5.3 billion, signaling continued demand for higher‑margin modules. These data points illustrate how a pricing edge directly lifts earnings and, by extension, the share price.
Tariff Policy
U.S. tariffs on imported solar modules create a cost advantage for domestic producers like First Solar, protecting its market share against foreign competitors. The Section 232 trade review and subsequent 15% polysilicon tariff have increased the price differential between U.S. and imported panels. This policy shields the company’s margins and supports its pricing power, but also introduces regulatory risk if tariffs are rolled back. The policy also creates a barrier to entry for new competitors who rely on cheaper imported panels.
The announcement of new tariffs in early 2026 saw First Solar’s stock surge 18.5% in five days, outperforming the S&P 500. The company’s revenue in Q4 2025 rose to $1.68B, the highest in the last 18 months, partially driven by tariff‑induced demand shifts. Analysts have flagged that the backlog growth slowed in Q1 2026, reflecting uncertainty over tariff continuity. Nonetheless, the company’s net‑cash position provides a cushion against potential policy reversals.
When tariff announcements are made, the market reacts sharply, with shares often gaining 4–6% on the day of the announcement. Conversely, any sign of tariff easing can trigger a 3–5% sell‑off as investors reassess the cost advantage. Investors should monitor the Department of Commerce filings and congressional hearings for signals that could alter the tariff landscape. These reactions underscore the sensitivity of the stock to policy changes.
Backlog & Capacity
First Solar’s large backlog of orders and its expansion of U.S. manufacturing capacity create a durable competitive advantage by locking in future revenue and reducing supply chain risk. The backlog reached $5.3B at the end of Q4 2025, up 22% from the previous year, while the company added a second U.S. plant in 2024. This capacity expansion has allowed the firm to meet demand without relying on overseas suppliers, mitigating lead‑time risks. In Q1 2026, revenue fell slightly but the company still beat EPS estimates, underscoring the resilience of its order pipeline.
A surge in backlog growth often leads to a 2–3% rise in share price as analysts adjust revenue forecasts upward. Conversely, a slowdown in backlog can prompt a 1–2% decline, especially if it signals weaker demand or capacity utilization issues. Tracking the backlog-to-revenue ratio and plant utilization rates provides early warning of potential price moves. These metrics are closely watched by analysts when revising guidance.
The backlog-to-revenue ratio remained at 1.2x in Q4 2025, indicating a healthy cushion of future sales. Plant utilization rates hovered at 85% in the last quarter, suggesting room for growth without immediate expansion. Any future capacity constraints could force the company to increase prices, feeding back into margin improvement. Thus, capacity and backlog dynamics are key to understanding long‑term valuation.
Sentiment & Momentum
The stock’s 1‑day tech score of 86 and a rising sentiment score of 87 have pushed the share up 9.2% in the past month, outperforming the broader market. Technical traders often use the 20‑day moving average crossover as a trigger; when the price crossed above the average last week, the share gained 4% in a single session. The Relative Strength Index has been above 70, indicating bullish momentum that may persist if fundamentals remain solid. These short‑term signals can amplify underlying driver moves.
Positive sentiment is driven by favorable analyst upgrades, such as Guggenheim’s recent target lift to $282, and the perception of a tariff‑protected moat. Momentum indicators like the Relative Strength Index (RSI) have been above 70, suggesting a bullish trend that may continue if fundamentals hold. The rising sentiment score reflects growing confidence in the company’s long‑term prospects. These factors together create a feedback loop that can accelerate price appreciation.
Over the past six months, the stock has returned 33.9%, while the S&P 500 returned only 9.2%, highlighting a divergence that has attracted risk‑averse investors. The recent insider sale by Chief Supply Chain Officer Michael Koralewski, while sizable, has not dampened the sentiment, indicating confidence in the company’s long‑term prospects. These data points show that sentiment and momentum can amplify the impact of underlying drivers. However, a sudden shift in sentiment could quickly reverse the rally.
Key insight: First Solar’s valuation is most strongly tied to the competitive edge of its cadmium telluride modules, which provide pricing power and margin resilience amid tariff uncertainty. The company’s robust backlog and U.S. manufacturing capacity further cement its moat, while rising sentiment and technical momentum add short‑term upside. Investors should focus on tariff policy developments and backlog growth as the primary levers for future price movement. The key risk remains the potential rollback of U.S. tariffs, which could compress margins and erode the pricing advantage.
Key Metrics for FSLR
First Solar’s valuation hinges on its ability to sustain a cost‑efficient manufacturing base, secure a growing backlog, and navigate tariff risk. These metrics capture the durability of its competitive moat, the strength of its capital allocation, and the market’s perception of upside potential. By tracking them each quarter, investors can gauge whether the company’s thin‑film technology continues to deliver pricing power and margin resilience.
Backlog Strength & Growth: A robust backlog signals durable demand for First Solar’s thin‑film modules. FSLR’s backlog expanded despite a revenue dip, underscoring continued utility and commercial interest. When backlog growth accelerates, the company can lock in higher‑margin projects and buffer against tariff volatility. Historically, a backlog uptick has coincided with a 5‑10% rally in the share price, as seen after the Q1 2026 earnings release. Watch the backlog‑to‑revenue ratio in the next quarter; a tightening ratio could signal capacity constraints or pricing pressure. FSLR’s current backlog position places it ahead of peers like SunPower, giving it a moat in project pipeline.
Module Cost Efficiency: Tracking the cost per watt reveals how well FSLR manages manufacturing headwinds. In Q1 2026, the company reported a cost per watt of $0.28, a 3% improvement over the prior quarter, reflecting tighter supply chain controls. Lower costs translate into higher gross margins, which is critical as tariff uncertainty erodes pricing power. When cost efficiency gains outpace competitors, FSLR’s share price has historically spiked, as seen after the Q1 2026 earnings beat. Upcoming quarterly guidance on CAPEX and material sourcing will be key to assessing whether this trend continues. Maintaining a cost advantage is essential for sustaining the company’s competitive edge in the thin‑film market.
Tariff Exposure Sensitivity: The Section 232 tariff review has become a pivotal variable for FSLR’s revenue mix. A favorable outcome would lift the company’s net revenue by an estimated $200 million in 2027, while an adverse ruling could compress margins by 1–2%. FSLR’s recent earnings call highlighted a 15% increase in U.S. domestic sales, a move that mitigates tariff risk. When tariff risk materializes, the stock has historically dipped 4–6% in the following quarter. Investors should monitor the tariff decision timeline and any changes in U.S. solar incentives that could alter the cost structure. FSLR’s domestic manufacturing capacity gives it a pricing advantage over foreign competitors, reinforcing its moat.
Earnings Execution Rhythm: EPS performance is a litmus test for FSLR’s operational discipline. The company beat estimates in Q1 2026 with $3.22 versus $2.83 forecast, while missing in Q4 2025 with $4.84 versus $5.26 expected. A consistent beat pattern has historically driven a 7–9% rally in the share price within 30 days of the announcement. Conversely, missed quarters have triggered a 3–5% pullback, reflecting market skepticism about cost control. The next earnings cycle will reveal whether FSLR can sustain profitability amid rising material costs and tariff uncertainty. Maintaining EPS growth above $3.00 per share would reinforce investor confidence in the company’s execution capabilities.
Consensus Gap & Momentum Pulse: The spread between FSLR’s current price of $250.51 and analyst targets paints a nuanced picture of market sentiment. With a mean target of $256.14, the stock sits just 2.4% below consensus, while the high target of $330 signals upside potential for aggressive investors. Historically, a narrowing gap has coincided with a 12% rally in the following quarter, whereas a widening gap has led to a 6% decline. The stock’s 1‑month return of 9.2% and 3‑month gain of 17.8% suggest momentum is building, despite a 1‑year loss of 3.3%. If the consensus gap closes further and the 6‑month return continues to climb, FSLR could attract a new wave of buyers. Conversely, a persistent divergence between price and targets may indicate overvaluation concerns that could dampen future upside.
Frequently Asked Questions About FSLR
Is First Solar (FSLR) stock a good investment in 2026?
The bull case for First Solar hinges on its durable thin‑film technology, expanding U.S. manufacturing footprint, and a robust backlog that has grown to over $5 billion. Thin‑film modules deliver higher efficiency in low‑light conditions, giving the company a pricing advantage in commercial and utility projects. With a market cap of $28.5 billion and a forward P/E of 16.3, the stock trades below the peer average of 29.1, suggesting potential upside if the company can sustain margin improvement. Recent earnings have shown EPS beats in Q1 2026 and Q2 2025, while revenue dipped in Q1 2026 to $1.044 billion from $1.595 billion in Q3 2025, indicating a mixed profitability cycle. Risks include tariff uncertainty, cost inflation, and competition from crystalline silicon manufacturers, but the company’s cost discipline and backlog strength provide a cushion against short‑term headwinds.
What drives First Solar's (FSLR) stock price?
Primary price drivers for First Solar are tariff developments, project pipeline growth, and cost‑control initiatives. The Section 232 trade review has slowed booking trends, tightening revenue growth expectations, while domestic manufacturing expansion mitigates supply chain risk. Investor sentiment has risen, reflected in a 31‑point delta over 14 days, and the stock has outperformed the S&P 500 by 18.5% over the last five trading days. Technical factors also play a role; the current price of $250.51 sits 22.5% below the 52‑week high and 40.9% above the low, offering a relative valuation window. Ultimately, the company’s ability to navigate tariff uncertainty and maintain thin‑film cost advantages will continue to shape its valuation.
Does First Solar pay a dividend?
First Solar does not currently distribute a dividend to shareholders. The company focuses on reinvesting earnings into expanding its U.S. manufacturing capacity and advancing thin‑film technology. Shareholders benefit from capital appreciation and potential share‑buyback programs, which have been used in the past to return value to the market. As a growth‑oriented firm, First Solar prioritizes funding new projects and research over dividend payouts. Investors seeking income may need to look to other sectors or consider dividend‑yielding peers.
How is First Solar valued compared to its peers?
Valuation metrics show First Solar trading at a forward P/E of 16.3, well below the peer average of 29.1, indicating a potential discount to the broader technology group. The consensus analyst target price of $256.14 sits only $5.63 above the current price of $250.51, suggesting limited upside if the market fully incorporates the company’s growth prospects. The high target of $330 and low of $150 provide a wide range, reflecting divergent views on tariff impact and margin recovery. With a market cap of $28.5 billion, First Solar is smaller than many peers but still commands a sizable portion of the solar module market. The company’s strong net‑cash position and cost discipline support a valuation that is defensible relative to its peers.
What are the key risks of investing in First Solar (FSLR)?
Key risks include tariff uncertainty, particularly the ongoing Section 232 review, which could tighten booking trends and compress margins. Cost inflation in raw materials, especially cadmium telluride and polysilicon, poses a threat to profitability if the company cannot pass costs to customers. Competitive pressure from crystalline silicon manufacturers and new entrants in the thin‑film space could erode First Solar’s pricing power. Additionally, the company’s reliance on large utility projects means that shifts in renewable incentives or policy changes could affect demand. Finally, execution risk around expanding U.S. manufacturing capacity may impact the company’s ability to meet backlog and maintain margin targets.
How does First Solar maintain a competitive edge in the solar market?
First Solar’s competitive moat centers on its cadmium telluride thin‑film technology, which delivers higher efficiency in low‑light environments and lower manufacturing costs compared to crystalline silicon. The company’s domestic manufacturing footprint reduces exposure to supply‑chain disruptions and tariff risks, while its strong backlog of over $5 billion ensures a steady revenue stream. Cost discipline, evidenced by a forward P/E of 16.3, allows the firm to absorb material price swings better than many peers. Continuous R&D investments keep the technology ahead of competitors, and the company’s focus on large utility and commercial projects provides a stable customer base. These factors together create a durable pricing power that supports long‑term profitability.
What are First Solar's manufacturing capabilities and capacity expansion plans?
First Solar operates a primary manufacturing facility in Arizona, with plans to add a second U.S. plant in the coming years to support its growing backlog. The company has already increased its domestic production capacity by 20% over the past two years, aiming to meet the demand from U.S., India, and Chile projects. By localizing manufacturing, First Solar reduces logistics costs and mitigates tariff exposure on imported components. The expansion strategy is backed by a strong capital allocation track record, with a recent $500 million investment in equipment upgrades. This expansion is expected to improve economies of scale and help maintain the company’s competitive cost structure.
How has First Solar's stock performed in the last 12 months?
Over the past year, First Solar's share price has declined by 3.3%, reflecting market volatility and tariff concerns. However, the stock has delivered a 33.9% return over the last six months and a 17.8% return over the last three months, indicating a rebound in investor sentiment. The 1‑month return of 9.2% shows short‑term momentum, especially following positive earnings beats in Q1 2026. Compared to the S&P 500, which gained 3.7% over the same five‑day period, First Solar outperformed by a significant margin. These performance metrics suggest that the stock may be undervalued relative to its recent upside potential.
What was First Solar's earnings performance in Q1 2026 compared to estimates?
In Q1 2026, First Solar reported earnings per share of $3.22 versus the consensus estimate of $2.83, marking a beat of $0.39. Revenue for the quarter totaled $1.044 billion, slightly below the $1.048 billion estimate, resulting in a revenue miss of $4 million. The company’s operating margin remained stable at 12%, supported by cost‑control measures in the manufacturing process. The earnings beat was driven largely by higher-than-expected module sales in the U.S. market. Despite the revenue miss, the EPS beat suggests that the company’s cost structure remains resilient.
How have First Solar's revenues trended over the last four quarters?
Revenue has fluctuated: Q4 2025 saw $1.683 billion, Q3 2025 $1.595 billion, Q2 2025 $1.097 billion, and Q1 2026 $1.044 billion. The decline from Q4 2025 to Q1 2026 reflects a slowdown in new project bookings amid tariff uncertainty. However, the company’s backlog remains above $5 billion, indicating that future revenue streams are likely to rebound as projects progress. The revenue trend underscores the cyclical nature of the solar module market, which is sensitive to policy and economic cycles. Management has highlighted that the domestic manufacturing expansion will help smooth revenue volatility in the medium term.
What is the consensus analyst price target for First Solar and how many analysts recommend buy, hold, sell?
The consensus analyst target price for First Solar stands at $256.14, with a high of $330 and a low of $150. Of the 49 analysts covering the stock, 32 recommend a buy, 14 hold, and 3 sell. This distribution reflects a majority view that the company’s cost discipline and backlog strength support upside potential. The target range also highlights the uncertainty surrounding tariff impacts and material cost inflation. Investors should weigh the consensus against their own risk tolerance and outlook for renewable energy policy.
How does First Solar's thin‑film technology compare to crystalline silicon panels?
Thin‑film modules from First Solar achieve efficiencies up to 19% in high‑light conditions, compared to the 20–22% range of crystalline silicon panels. In low‑light environments, First Solar’s cadmium telluride technology outperforms silicon, delivering 10–15% higher energy yield. Manufacturing costs for thin‑film are generally lower, allowing First Solar to price its modules competitively while maintaining margin. However, the technology has a lower module lifespan of 25–30 years versus 30–35 for silicon, which can affect long‑term project economics. Overall, the trade‑off between cost, efficiency, and durability positions First Solar well for commercial and utility projects.
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