First Solar Guidance Miss Spurs 11.9% Sell-Off, Revenue Outlook Cut to $4.9B–$5.2B
First Solar shares fell 11.93% between February 18 and 25 after Q4 EPS of $4.84 missed estimates by $0.33 and the stock hit a multi-month low. The company guided FY2026 revenue to $4.9–5.2 billion versus $6.16 billion consensus, citing $125–135 million in tariff headwinds.
1. Stock Price Decline and Earnings Miss
First Solar shares declined 11.93% between February 18 and 25 after reporting Q4 EPS of $4.84, missing consensus by $0.33 and pushing the stock to a multi-month low.
2. Disappointing FY2026 Revenue Guidance
The company projected FY2026 revenue between $4.9 and $5.2 billion, well below the $6.16 billion consensus, following FY2025’s 24% year-over-year revenue growth to $5.2 billion.
3. Factory Underutilization and Tariff Impact
Management is intentionally underutilizing Southeast Asian manufacturing capacity while awaiting resolution on solar tariffs, which are expected to impose a $125–135 million headwind this year.
4. Analyst Downgrades and Target Cuts
Deutsche Bank, HSBC, Baird, JP Morgan, UBS and others downgraded the stock or cut price targets after the guidance miss, reflecting diminished investor confidence.