First Solar is growing capacity, but demand needs to follow.
Shares of solar panel manufacturer First Solar (FSLR 14.37%) are tanking today. The company ended the year strong, but management disappointed investors with guidance for 2026.
First Solar stock tanked nearly 20% on the news, and remained down by 15.2% as of 10:41 a.m. ET.
Image source: Getty Images.
Growing domestic supply
First Solar’s fourth-quarter report wasn’t bad at all. It culminated a strong year for the company, with sales growing 24% to $5.2 billion. More good news from the company during the fourth quarter included the commissioning of a new manufacturing facility in Louisiana and plans for a new 3.7 gigawatt solar panel production facility in South Carolina.
That’s about where the good news ended for investors, though. Guidance for 2026 implied no sales growth and possibly a decline in revenue. That was a severe disappointment, with analysts expecting about $6.2 billion in 2026 sales, according to FactSet Research.
Today’s Change
(-14.37%) $-34.94
Current Price
$208.27
Key Data Points
Market Cap
$26B
Day’s Range
$196.50 – $215.00
52wk Range
$116.56 – $285.99
Volume
341K
Avg Vol
2.2M
Gross Margin
40.32%
Investors have been betting that First Solar’s growing capacity will pay off. The stock soared last year, and remains 35% higher over the last 12 months, even after today’s plunge. But guidance implying no sales growth isn’t what investors wanted to see.
After a strong run in shares last year, it will likely take a beat on that 2026 guidance for First Solar shares to get another boost higher.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems and First Solar. The Motley Fool has a disclosure policy.