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First Solar
(NASDAQ:FSLR)
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Rating:72Outperform
Price Target:
$266.00
▲(31.15% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (high margins, strong ROE, and very low leverage). This is meaningfully offset by weak technicals (price below all major moving averages) and near-term uncertainty flagged on the earnings call (tariffs/policy, international underutilization and related cost exposure). Valuation is a modest positive with a P/E around 13.
Positive Factors
High Profitability & Margins
Sustained high gross and operating margins signal durable competitive unit economics from First Solar’s CdTe technology and manufacturing scale. Strong margins improve cash generation and resilience versus cyclical module price swings, supporting reinvestment and maintaining returns even if near-term volumes vary.
Negative Factors
Tariff & Policy Uncertainty
Active trade investigations and temporary tariff windows create structural demand and pricing uncertainty that affects contract selection, booking cadence, and factory allocation. Management’s assumptions could change quickly, making forward-looking volume and margin plans sensitive to policy outcomes over the next few months.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Sustained high gross and operating margins signal durable competitive unit economics from First Solar’s CdTe technology and manufacturing scale. Strong margins improve cash generation and resilience versus cyclical module price swings, supporting reinvestment and maintaining returns even if near-term volumes vary.
Read all positive factors
First Solar Key Performance Indicators (KPIs)
Any
Revenue by Segment (Discontinued)
Breaks down income across different business areas, revealing which segments drive growth and where strategic focus may be needed.
Breaks down income across different business areas, revealing which segments drive growth and where strategic focus may be needed.
Data provided by:
The Fly
The FlyFirst Solar (FSLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.04B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)13.9
Beta (1Y)1.13
Revenue Growth23.82%
EPS Growth38.56%
CountryUS
Employees7,900
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)16.26
Shares Outstanding107,469,790
10 Day Avg. Volume1,742,740
30 Day Avg. Volume1,772,351
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)2.94
Price to Sales (P/S)5.37
P/FCF Ratio23.60
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$273.67Price Target Upside34.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)17.76
Revenue Forecast (FY)$5.04B
First Solar Business Overview & Revenue Model
Company Description
First Solar, Inc. is a global provider of photovoltaic (PV) solar energy solutions, operating in numerous international markets including the United States, Japan, France, Canada, India, and Australia. The company's primary activity involves the e...
How the Company Makes Money
First Solar primarily makes money by selling solar photovoltaic modules, mainly to utility-scale developers, engineering/procurement/construction (EPC) providers, and project owners. The largest revenue stream is module sales recognized when contr...
First Solar Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial performance (record volumes, wide gross margins, robust adjusted EBITDA and net income growth, a large backlog and a healthy balance sheet) alongside notable near-term headwinds tied to trade/policy uncertainty, international underutilization, logistics costs, and some timing delays for domestic capacity. On balance, the company emphasized disciplined contracting and substantial upside from technology (CuRe and perovskites) while awaiting policy clarity that could catalyze further bookings and utilization.Positive Updates
Record Financial Performance and Profitability
Net sales of approximately $1.06 billion in Q2 (down ~4% YoY), gross margin expanded to ~57% (increase of ~12 percentage points YoY), adjusted EBITDA of $644 million with a 61% adjusted EBITDA margin, and net income of $423 million (up ~24% YoY).
Negative Updates
Revenue Decline and One-Time Revenue Mix Effects
Reported net sales decreased ~4% YoY, primarily due to lower revenue associated with customer contract terminations recognized in the prior year, partially offset by higher module volumes sold.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Financial Performance and Profitability
Net sales of approximately $1.06 billion in Q2 (down ~4% YoY), gross margin expanded to ~57% (increase of ~12 percentage points YoY), adjusted EBITDA of $644 million with a 61% adjusted EBITDA margin, and net income of $423 million (up ~24% YoY).
Read all positive updates
Company Guidance
First Solar reaffirmed its full‑year 2026 guidance while now assuming a net tariff impact of roughly $60–80 million (including estimated net IEPA recoveries and an expectation of Section 301 tariffs in H2), and flagged offsetting updates between production start‑up and R&D expenses plus incremental domestic freight costs; near‑term guidance for Q3 calls for volumes sold of 3.9–4.5 GW and adjusted EBITDA of $625–$775 million (the company also expects limited ASP upside from CuRe in 2026). Other relevant metrics anchoring the outlook include a June 30 backlog of 45.1 GW with an aggregate transaction value of $13.6 billion, H1 capex of $280 million, H1 operating cash outflows of $360 million (vs. $458 million in H1’25), and ending net cash of ~$1.7 billion (within the $1.5–$2.0 billion target range).First Solar Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.38B | 5.22B | 4.21B | 3.32B | 2.62B | 2.92B |
| Gross Profit | 2.37B | 2.12B | 1.86B | 1.30B | 69.86M | 729.95M |
| EBITDA | 2.44B | 2.15B | 1.87B | 1.21B | 290.55M | 845.17M |
| Net Income | 1.75B | 1.53B | 1.29B | 830.78M | -44.17M | 468.69M |
Balance Sheet | ||||||
| Total Assets | 13.39B | 13.32B | 12.12B | 10.37B | 8.25B | 7.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 2.86B | 1.79B | 2.10B | 2.58B | 1.83B |
| Total Debt | 194.01M | 498.57M | 718.80M | 624.39M | 234.13M | 398.59M |
| Total Liabilities | 3.07B | 3.78B | 4.15B | 3.68B | 2.42B | 1.45B |
| Stockholders Equity | 10.32B | 9.54B | 7.98B | 6.69B | 5.84B | 5.96B |
Cash Flow | ||||||
| Free Cash Flow | 1.50B | 1.19B | -308.08M | -784.51M | -30.24M | -302.73M |
| Operating Cash Flow | 2.16B | 2.06B | 1.22B | 602.26M | 873.37M | 237.56M |
| Investing Cash Flow | -706.56M | -765.17M | -1.56B | -472.79M | -1.19B | -99.04M |
| Financing Cash Flow | -930.17M | -119.23M | 24.85M | 336.85M | 309.39M | 40.55M |
First Solar Technical Analysis
Negative
202.82
Price Trends
237.68
Negative
227.48
Negative
234.48
Negative
Market Momentum
1.75
Negative
47.47
Neutral
35.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLR, the sentiment is Negative. The current price of 202.82 is below the 20-day moving average (MA) of 220.19, below the 50-day MA of 237.68, and below the 200-day MA of 234.48, indicating a neutral trend. The MACD of 1.75 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 35.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSLR.
First Solar Risk Analysis
First Solar disclosed 34 risk factors in its most recent earnings report. First Solar reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Solar Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $24.04B | 13.87 | 18.02% | ― | 23.82% | 38.56% | |
71 Outperform | $15.86B | 25.49 | 26.32% | ― | 16.97% | 6.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $5.39B | 39.69 | 12.28% | ― | -10.41% | -22.03% | |
53 Neutral | $1.98B | -7.19 | -62.50% | ― | 37.91% | 84.96% | |
53 Neutral | $796.22M | -5.16 | -47.02% | ― | 1.18% | 44.68% | |
49 Neutral | $2.37B | 5.96 | 2.46% | ― | 63.23% | ― |
* Technology Sector Average
FSLR
First Solar
225.56
25.61
12.81%
ENPH
Enphase Energy
40.48
5.64
16.19%
SEDG
SolarEdge Technologies
32.42
2.36
7.85%
RUN
Sunrun
10.19
-3.73
-26.80%
ARRY
Array Technologies
5.05
-2.57
-33.73%
NXT
Nextpower Inc
101.47
40.89
67.50%
First Solar Corporate Events
Executive/Board ChangesShareholder Meetings
First Solar Stockholders Reaffirm Board and Governance Structure
Neutral
May 15, 2026
First Solar, Inc. held its 2026 annual meeting of stockholders on May 13, 2026, with 92,119,644 shares represented out of 107,450,760 eligible to vote as of March 19, 2026. Stockholders elected ten directors, including Michael J. Ahearn, Anita Mar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.