First Solar Shares Plunge on Weak 2026 Guidance and Revenue Decline Projections

Key Facts

1First Solar issued 2026 Adjusted EBITDA guidance of $2.6–$2.8B, which lags behind consensus expectations.

2Revenue is projected to decline in 2026, with valuation multiples being influenced by Section 45X tax credits.

3Disappointing Q4 results and soft future outlook triggered a sharp selloff in the company's stock.

First Solar, Inc. (FSLR) shares experienced a sharp selloff following the release of disappointing fourth-quarter results and a weak financial outlook for 2026. The company issued 2026 Adjusted EBITDA guidance in the range of $2.6 billion to $2.8 billion, falling significantly short of Wall Street consensus estimates. Furthermore, management projected a decline in revenue for 2026, raising concerns about the company's long-term growth trajectory. Analysts noted that the company's valuation remains heavily dependent on Section 45X tax credits provided under the Inflation Reduction Act. The disappointing forecast has triggered broader concerns within the renewable energy sector, affecting solar-related exchange-traded funds. Investors are now reassessing the stock's premium as the gap between actual performance and previous market expectations continues to widen.