First Solar Stock Drops 14%, Suffers Steepest Plunge Since June After Weak Guidance

Key Stats for First Solar Stock

• Price change for First Solar stock: -13.6%
• $FSLR Share Price as of Feb. 25: $210
• 52-Week High: $286
• $FSLR Stock Price Target: $281

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

First Solar (FSLR) stock plunged 13.61% on Wednesday (February 25) after the company issued weak revenue guidance for 2026. This was one of the worst drops since June.

• The solar panel manufacturer projects net sales between $4.9 billion and $5.2 billion for the full year, representing flat to declining growth compared to 2025’s $5.2 billion in revenue.
• This stands in sharp contrast to the company’s strong performance last year, when First Solar delivered 24% revenue growth driven by increased module shipments.
• The disappointing outlook comes despite the company reporting solid fourth-quarter results, with net profit jumping 32% to $520.88 million and sales climbing 11.2% to $1.68 billion.
• The guidance reflects several operational challenges. First Solar is significantly curtailing production at its Malaysia and Vietnam facilities, running them at just 20% capacity as the company navigates tariff uncertainties and shifts production to the U.S.
• The company is also dealing with substantial warehousing costs and underutilization expenses totaling $115 million to $155 million for 2026.

CEO Mark Widmar noted that the company is taking a “patient, selective and opportunistic” approach to new bookings while a combination of tighter trade enforcement, potential retroactive tariffs, pending Section 232 actions, and expanding foreign entities of concern restrictions, among other things, is increasing cost, timing, and compliance risk.

Despite these headwinds, First Solar maintained its strong financial position with $2.9 billion in cash and expects to generate $2.6 billion to $2.8 billion in adjusted EBITDA for 2026.

See analysts’ growth forecasts and price targets for First Solar stock (It’s free!) >>>

What the Market Is Telling Us About First Solar Stock

The sharp decline in First Solar stock signals investor concern about near-term growth prospects, even as the company’s longer-term fundamentals remain intact.

With a contracted backlog of 50.1 gigawatts worth $15 billion, First Solar has substantial visibility into future demand.

However, the market is clearly worried about the company’s ability to convert that backlog into revenue growth amid production constraints and policy uncertainty.

The company’s decision to maintain underutilized capacity in Southeast Asia rather than shut it down entirely suggests management believes these headwinds are temporary, viewing the idle capacity as “option value” for when trade policies stabilize.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does First Solar Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

1. Revenue Growth
2.  Operating Margins
3.  Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!