First Solar (NASDAQ:FSLR) Releases Quarterly Earnings Results, Misses Estimates By $0.38 EPS

First Solar (NASDAQ:FSLR) issued its quarterly earnings results on Tuesday. The solar cell manufacturer reported $4.84 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.22 by ($0.38), FiscalAI reports. The business had revenue of $1.68 billion for the quarter, compared to analysts’ expectations of $1.59 billion. First Solar had a net margin of 29.28% and a return on equity of 17.81%. The company’s revenue was up 11.1% on a year-over-year basis. During the same period last year, the business earned $3.65 earnings per share.

Here are the key takeaways from First Solar’s conference call:

• First Solar reported a strong 2025 with a record 17.5 gigawatts of modules sold, net sales of $5.2 billion, diluted EPS of $14.21, and year-end net cash of $2.4 billion, all at or above guidance.
• 2026 guidance shows resilience—net sales $4.9–$5.2 billion and adjusted EBITDA $2.6–$2.8 billion—but results are heavily dependent on monetizing about $2.1–$2.19 billion of Section 45X tax credits included in gross margin assumptions.
• Management expects the current policy, tariff and trade actions (AD/CVD, FEOC, Section 232) and active IP enforcement to be a net competitive tailwind for First Solar versus many crystalline-silicon suppliers, and it filed an ITC petition seeking exclusion of alleged infringing TOPCon imports.
• Technology roadmap advanced—commercial rollout of the CuRe semiconductor begins factory-by-factory (Ohio lead line in Q1) with claims of up to ~8% higher lifetime specific energy vs TOPCon, and perovskite development (Oxford PV license, pilot line targeted early 2027) remains on track.
• Near-term operational and cost headwinds include significant underutilization of Southeast Asia Series‑6 capacity, forecasted ramp/underutilization and setup costs (~$115–$155M and $110–$120M), high warehousing (~$200M) and net tariff impact (~$125–$135M), plus a recorded $50M warranty liability and backlog shrinkage to 50.1 GW.

First Solar Stock Performance

Shares of FSLR stock traded up $0.44 during trading hours on Thursday, reaching $210.56. The company had a trading volume of 1,129,316 shares, compared to its average volume of 2,638,065. The business has a fifty day moving average price of $244.57 and a 200-day moving average price of $236.13. First Solar has a one year low of $116.56 and a one year high of $285.99. The firm has a market cap of $22.60 billion, a PE ratio of 14.76, a price-to-earnings-growth ratio of 0.31 and a beta of 1.60. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.55 and a current ratio of 1.91.

Key Headlines Impacting First Solar

Here are the key news stories impacting First Solar this week:

• Positive Sentiment: Q4 revenue beat and record 2025 profit; company reported growing bookings and is expanding U.S. finishing capacity (onshoring Series 6). This supports medium‑term growth capacity and gives a foothold for future demand recovery. Earnings Release
• Positive Sentiment: Strategic patent/licensing move: First Solar entered a patent licensing agreement with Oxford PV for U.S. markets, which could improve its tech stack and product roadmap. Oxford PV deal
• Neutral Sentiment: Mixed analyst reaction — some firms trimmed price targets but kept Buy/Outperform stances (UBS trimmed its target); others maintained more cautious ratings, so street sentiment is divided. Analyst notes
• Neutral Sentiment: Some investors/analysts view the share pullback as a buying opportunity tied to policy-driven volatility; one note recommends staged accumulation while flagging tax‑credit dependency beyond 2030. SA upgrade
• Negative Sentiment: Guidance shock — FY2026 net sales were guided to roughly $4.9B–$5.2B, materially below consensus (~$6.2B), triggering the selloff as revenue visibility weakened. Reuters
• Negative Sentiment: Q4 EPS missed estimates ($4.84 vs. ~$5.22), even though revenue beat; investors focused on the EPS miss and the weaker full‑year outlook. Earnings highlights
• Negative Sentiment: Tariff and policy uncertainty — U.S. preliminary duties on certain imports and management commentary about tariff impacts raised concerns about higher costs, margin pressure, and near‑term contracting delays. Trade duties
• Negative Sentiment: Analyst downgrades and target cuts (Baird, HSBC, others) reflect elevated near‑term uncertainty and trimmed models; this amplifies selling pressure until guidance clarity returns. Baird downgrade

Analysts Set New Price Targets

A number of research analysts recently weighed in on FSLR shares. Wolfe Research raised their price objective on First Solar from $232.00 to $247.00 in a research report on Friday, October 31st. Morgan Stanley set a $275.00 price target on First Solar in a report on Friday, October 31st. UBS Group lowered their price target on First Solar from $330.00 to $300.00 and set a “buy” rating for the company in a research report on Wednesday. Needham & Company LLC upped their price target on shares of First Solar from $286.00 to $303.00 and gave the stock a “buy” rating in a research note on Monday. Finally, BMO Capital Markets set a $263.00 price objective on shares of First Solar in a research note on Thursday, January 29th. Twenty-one equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $257.91.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FSLR. Viking Global Investors LP grew its position in First Solar by 60.6% in the 2nd quarter. Viking Global Investors LP now owns 2,266,050 shares of the solar cell manufacturer’s stock worth $375,122,000 after purchasing an additional 854,919 shares during the period. Amundi boosted its stake in shares of First Solar by 38.6% in the 3rd quarter. Amundi now owns 2,025,835 shares of the solar cell manufacturer’s stock worth $459,917,000 after buying an additional 564,032 shares during the last quarter. Atreides Management LP bought a new stake in shares of First Solar in the second quarter worth $65,134,000. Peconic Partners LLC bought a new stake in shares of First Solar in the second quarter worth $49,662,000. Finally, Schonfeld Strategic Advisors LLC increased its position in First Solar by 2,863.1% during the fourth quarter. Schonfeld Strategic Advisors LLC now owns 235,504 shares of the solar cell manufacturer’s stock valued at $61,521,000 after acquiring an additional 227,556 shares during the last quarter. Institutional investors own 92.08% of the company’s stock.

About First Solar

First Solar, Inc (NASDAQ: FSLR) is a United States–based solar technology company best known for designing and manufacturing thin‑film photovoltaic (PV) modules that use cadmium telluride (CdTe) semiconductor technology. The company supplies PV modules and delivers integrated solar power solutions for utility‑scale projects, positioning itself as a provider of both components and complete solar energy systems rather than solely a parts supplier. First Solar was founded in 1999 and is headquartered in Tempe, Arizona.

Beyond module manufacturing, First Solar offers a range of project services including development support, engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) for large-scale solar installations.