What Happened?
Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) fell 15% in the morning session after the company reported fourth-quarter earnings per share (EPS) that missed analyst expectations and issued a weaker-than-expected revenue forecast for 2026.
The solar panel maker projected net sales for 2026 to be between $4.9 billion and $5.2 billion, with the midpoint falling significantly below analysts' average forecast of around $6.1 billion. In addition to the weak guidance, the company's fourth-quarter EPS of $4.84 also fell short of Wall Street estimates. This combination of an earnings miss and a disappointing outlook for the year ahead prompted a negative reaction from investors.
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What Is The Market Telling Us
First Solar’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. But moves this big are rare even for First Solar and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 2.9% on the news that the U.S. Supreme Court struck down tariffs imposed by the Trump administration, a move expected to lower costs for manufacturers.
In a 6-3 decision, the court ruled that the administration's use of the International Emergency Economic Powers Act of 1977 to justify the tariffs was not applicable. The removal of these tariffs is expected to reduce the cost of imported parts, materials, and equipment, which are crucial inputs for many U.S.-based manufacturing companies. Economists suggest this will alleviate budget pressures on these firms and could also reduce broader inflation concerns, potentially paving the way for accelerated interest rate cuts by the central bank. The ruling is seen as particularly beneficial for small and medium-sized businesses, which have shouldered much of the financial burden from the import duties.
First Solar is down 23.2% since the beginning of the year, and at $210.66 per share, it is trading 26% below its 52-week high of $284.59 from December 2025. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $2,588.
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