Analysts Slash First Solar Target to $228 on Weaker 2026 Guidance
Barclays cut First Solar's price target to $228 from $279 and Freedom Capital downgraded to Hold with a $250 target following weaker 2026 guidance. First Solar posted record 17.5 GW modules, $5.2B net sales (+24% YoY) and $14.21 EPS, guiding 2026 net sales of $4.9–5.2B with ~49.5% margin.
1. Analyst Price Target Adjustments
In early March, Barclays revised its price target on First Solar to $228 from $279 while maintaining an Overweight rating, reflecting updated valuation assumptions. On February 26, Freedom Capital downgraded the rating to Hold from Buy and set a $250 target, citing elevated uncertainty in the utility-scale solar market.
2. 2025 Financial Results
First Solar achieved record module sales of 17.5 gigawatts in 2025 and posted net sales of $5.2 billion, a 24% year-over-year increase. Full-year diluted EPS rose to $14.21 from $12.20, and fourth-quarter EPS climbed sequentially to $4.84 from $4.24, driven by robust demand and operational efficiencies.
3. 2026 Outlook and Margin Drivers
Management forecasts 2026 net sales between $4.9 billion and $5.2 billion, with adjusted EBITDA of $2.6 billion to $2.8 billion. Gross margins are expected at approximately 49.5%, underpinned by an estimated $2.10 billion to $2.19 billion of Section 45X tax credits.