First Solar Shares Jump 9.4% After Democrats Win Both Chambers of Congress

Key Facts

First Solar shares rose 9.4% on November 4 after Democrats won control of both chambers of the U.S. Congress, according to Reuters. The solar panel maker’s gain came amid a wave of optimism about the election result’s impact on the renewable energy sector. The Associated Press said Democrats won control of both chambers, while Reuters linked the stock move to expectations that federal support for clean energy development would remain in place. The result may have strengthened investors’ expectations for future policy, but does not itself represent a new decision on funding or approvals. At the latest documented close before the November 9 session, the stock stood at $201.14 on November 6, up 2.75% from the previous close, after reaching an intraday high of $207.65, according to the company’s investor relations data.

Reuters said the Democratic win could bolster expectations for continued federal support for clean energy projects, with the possibility of faster approvals for energy and infrastructure projects. This path is tied to the importance of public funding and permits in developing sector projects, though details of the policy the administration and Congress will pursue were not included in the available information about the election result. The Associated Press reported that Democrats’ influence over funding would grow when they take control of Congress in January. That leaves the solar sector facing a period of waiting between the shift in political control and its impact on funding decisions. In the November 9 session, the S&P 500 rose 2.3% by midday, as the index was on track for a second daily gain after losses the previous week.

The wave of political optimism contrasts with weaker financial figures on the sales side. On October 29, First Solar cut its 2026 sales forecast range to $4.6–$4.9 billion, from the previous range of $4.9–$5.2 billion. It also narrowed its forecast range for adjusted earnings before interest, taxes, depreciation and amortization to $2.55–$2.75 billion, from $2.6–$2.8 billion. The revision came in the company’s quarterly results announcement, before the share rise linked to the election result. The forecast cut puts the revenue and earnings outlook at the center of investors’ assessment of the impact of any potential improvement in political support.

In its third-quarter results, the company reported diluted earnings per share of $5.30, beating expectations of $4.67, while revenue was $1.23 billion against a forecast of $1.28 billion, according to the earnings call transcript published by Investing.com. This was a mixed performance, with earnings per share above expectations and revenue below them. Revenue fell 23% year over year during the quarter, while gross margin rose to 58%, up nearly 20 percentage points from the year-earlier period. Meanwhile, contracted and backlog sales volume stood at 44.0 gigawatts as of September 30, 2026, according to the company. The figures combine lower revenue, an improved margin and an extended order book, none of which reverses the full-year forecast cut.

Alongside the forecast cut, the board authorized a share repurchase program of up to $500 million, with the company to determine the timing and amount of purchases based on its assessment of market conditions and other factors. On manufacturing, Chief Executive Mark Widmar said nearly 80% of the company’s global module manufacturing capacity would be in the United States by 2027. The company expects to begin converting its facility in India to Series 7 technology during the first quarter of 2027, and expects commercial operations to begin at its finishing facility in South Carolina in the middle of the same year. These dates are later milestones in the manufacturing plan presented by the company, while Democrats’ assumption of control of Congress in January remains the next political milestone tied to funding expectations. In the broader market, the Associated Press reported that the election results raised concerns about a slowdown in the construction of AI data centers, which face greater political scrutiny amid voters’ concerns about rising electricity bills.