FSLR Stock Today: February 26 — Shares Sink on Weak 2026 Outlook, Tariff Risks
First Solar stock fell about 16% on February 26 after the company guided 2026 net sales to $4.9–$5.2 billion versus roughly $5.6 billion expected and missed Q4 EPS at $4.84 versus $5.17. Policy overhang and tariff uncertainty added pressure. We review what this means for U.S. investors tracking solar stocks today. For context, we also outline valuation, technical signals, and next catalysts for FSLR as the market resets growth expectations for 2026.
What drove today’s selloff
Management’s 2026 net sales outlook of $4.9–$5.2 billion came in below consensus near $5.6 billion, while Q4 EPS of $4.84 missed estimates of $5.17. The gap implies slower pricing and cautious deliveries as customers assess financing and policy. Shares slid about 16% on the print, reflecting lower growth assumptions and a tighter margin of safety for investors source.
Management flagged policy and tariff uncertainty, which can delay orders and dampen utility-scale project timelines. Investors worry that potential changes to import tariffs or permitting rules could shift module pricing and demand. Those concerns weighed on sector sentiment and reinforced caution across solar stocks today source.
What it means for US solar investors
A softer outlook tightens revenue visibility into 2026 and raises the bar for order growth. Developers may pace purchases until policy is clearer, which can pressure average selling prices. We expect wider dispersion across projects, with stronger counterparties moving ahead while smaller buyers delay. That mix could keep volatility elevated across U.S. solar stocks today.
Inflation Reduction Act credits still support long-term buildout. But timing matters. If tariff uncertainty lifts financing costs or procurement risk, developers may stage projects or renegotiate terms. That can push deliveries between quarters, making results lumpier. For investors, model with wider bands around revenue and margin timing through 2026 while tracking policy headlines closely.
Valuation and fundamentals check
First Solar ends from a position of strength. Current ratio is 2.67 and cash per share is 26.48. Debt to equity sits at 0.052, with interest coverage of 34.7. Gross margin is 40.96% and ROE is 17.37%. These metrics give room to navigate demand shifts while sustaining R&D and capacity optimization.
TTM P/E is 14.65 and price to book is 2.35, with EV/EBITDA at 10.53. The stock pays no dividend. Analyst consensus skews positive with 26 Buys and 6 Holds. Our system rating on Feb 24, 2026 is B, Neutral. Next earnings is scheduled for April 28, 2026, a key checkpoint for updated orders and pricing.
Technical setup and risk levels
Near-term momentum turned weak. RSI is 37.03, and CCI at -178.38 signals oversold. ADX at 17.19 shows no strong trend. ATR at 14.84 points to wide daily swings. For traders, that mix argues for disciplined position sizing and clear stop levels while liquidity adjusts to the revised outlook.
Recent bands suggest turbulence. Bollinger levels sit near 250.15 on the upper band and 211.57 on the lower, with the middle around 230.86. Keltner channels show similar ranges. A sustained move above the mid-band would help stabilize sentiment. A break below the lower band could invite another round of de-risking.
Final Thoughts
First Solar stock sold off after a light 2026 revenue outlook and an EPS miss, with tariff uncertainty amplifying fear. For long-term investors, the balance sheet, double-digit margins, and IRA tailwinds still support the thesis, but timing looks choppy. We would focus on three items over the next quarter: order momentum, realized pricing, and any clarity on trade policy. Keep valuation in view with a TTM P/E near 14.7 and watch for stabilization around mid-band technical levels. If you scale in, consider staggered buys and strict risk limits. Traders should expect higher volatility until management offers firmer 2026 visibility.
FAQs
Why did First Solar stock drop today?
Shares fell about 16% after the company guided 2026 net sales to $4.9–$5.2 billion versus roughly $5.6 billion expected and reported Q4 EPS of $4.84 versus $5.17. Policy and tariff uncertainty also weighed on demand expectations, prompting investors to reset growth and margin assumptions for 2026.
What is First Solar’s guidance for 2026?
Management guided net sales to a range of $4.9–$5.2 billion for 2026, below consensus near $5.6 billion. The company cited policy and tariff uncertainty as factors that could affect project timing and customer orders, leading the market to mark down growth expectations until there is clearer visibility.
How do tariffs affect First Solar and US solar stocks?
Tariff changes can alter module pricing and delivery timing. If import costs rise or rules shift, developers may delay orders or reprice projects, which affects revenue timing and margins. That uncertainty often broadens volatility across U.S. solar stocks today until policy outcomes become clearer.
Is First Solar stock attractive after the selloff?
It depends on your horizon. Fundamentals look solid with a 2.67 current ratio, low leverage, and ROE near 17%. Valuation sits around a 14.65 P/E. Street views are positive, but our system flags a Neutral rating. Consider scaling entries and watching policy headlines and order trends.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.