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Solar Giant's Sales Forecast Misses Wall Street.
25 Feb
Summary
- First Solar forecasts 2026 sales below analyst expectations.
- Weak U.S. demand is linked to high interest rates and California reforms.
- Shares dropped nearly 14% following the disappointing forecast.
First Solar, the largest U.S.-based solar panel manufacturer, is experiencing a significant stock decline of nearly 14% following its current-year sales forecast, which fell short of market expectations. The company anticipates 2026 net sales to range between $4.9 billion and $5.2 billion, a figure considerably lower than the $6.12 billion analysts had projected.
This downturn in expected sales is attributed to persistent weakness in the U.S. residential solar market. High interest rates and recent metering reforms in California have diminished the financial incentives for customers to install solar panels. The broader solar industry is already navigating a challenging landscape of subdued demand and elevated borrowing costs, with new trade and energy policies adding to market uncertainty.
Despite the concerning future outlook, First Solar reported a solid fourth quarter for the period ending December 31. Net sales reached $1.68 billion, an increase of approximately 11.1% compared to the previous year, primarily driven by a rise in module sales volume. The company also posted a net income of $4.84 per share for the quarter, up from $3.65 per share in the same period last year.
