Shares of First Solar took a significant hit in after-hours trading Monday, dropping nearly 14% following the company’s announcement of disappointing sales projections for the coming years.
The Arizona-headquartered firm, which holds the title as America’s largest solar panel manufacturer, issued a revenue forecast for 2026 that fell well short of Wall Street expectations. The company projected annual sales between $4.9 billion and $5.2 billion, while financial analysts had anticipated revenues of $6.12 billion.
Company officials attributed the cautious outlook to anticipated price increases for their solar products, which they expect will result from new tariffs imposed on internationally manufactured panels. This pricing pressure comes as the residential solar market continues to struggle with multiple headwinds.
The home solar sector has faced persistent challenges due to elevated borrowing costs and regulatory changes in California, the nation’s top solar market. Recent modifications to the state’s net metering policies have significantly reduced the financial incentives homeowners receive when they sell surplus electricity back to utility companies.
These market pressures are occurring against a backdrop of broader industry uncertainty as solar companies navigate potential policy shifts under President Donald Trump’s administration, particularly regarding trade regulations and energy sector priorities.
Despite the gloomy forecast, First Solar did report some positive fourth-quarter results. The company’s net sales reached $1.68 billion for the three months ending December 31, representing an 11.1% increase compared to the same period last year. This growth was driven primarily by higher sales volumes of solar modules during the quarter.
The company also posted stronger earnings per share, reporting net income of $4.84 per share for the fourth quarter, up from $3.65 per share in the previous year’s comparable period.
