First Solar Inc. Reports Strong Fourth‑Quarter Results Amid a Downbeat Forecast
First Solar Inc. (NASDAQ: FSLR) released its fourth‑quarter 2025 financial results on February 24, 2026, reporting a revenue increase of 11.1 % to $1.682 billion and a net income of $520.88 million. Earnings per share rose to $4.84, up from $3.65 in the same period a year earlier. The company’s revenue growth was supported by a 2‑digit increase in sales volume, despite a competitive landscape and tariff pressures on U.S. solar panels.
Key Financial Highlights
| Metric | 2025 Q4 | 2024 Q4 |
|---|---|---|
| Net Revenue | $1,682 million | $1,514 million |
| Net Income | $520.88 million | $393.12 million |
| Earnings per Share | $4.84 | $3.65 |
| Revenue Growth | +11.1 % | – |
The company’s earnings surpass the market expectation, contributing to a brief uptick in share price before the broader market reaction to the company’s outlook.
Downbeat Outlook and Market Impact
Shortly after the earnings announcement, First Solar issued a downbeat net‑sales forecast for the current year, citing higher U.S. panel prices influenced by newly imposed tariffs on foreign‑made panels. The forecast led to a nearly 14 % decline in the stock price after hours. This drop reflects investor concerns about the company’s ability to maintain profitability amid tariff‑driven cost pressures and a potentially tighter residential solar market.
Patent Licensing Agreement with Oxford Photovoltaics
In a strategic move to bolster its technology pipeline, First Solar announced a patent licensing agreement with Oxford Photovoltaics Limited. The agreement grants First Solar access to Oxford’s existing issued patents and pending applications, facilitating the development of next‑generation perovskite solar devices for the U.S. market. This partnership is intended to accelerate the commercialization of higher‑efficiency thin‑film technologies and strengthen First Solar’s competitive position.
U.S. Tariff Environment
The U.S. Commerce Department announced preliminary countervailing duties on solar cells and panels imported from India, Indonesia, and Laos, with subsidy rates of 125.87 %, 104.38 %, and 80.67 % respectively. These duties, announced on February 24, 2026, are part of a broader effort to level the playing field for U.S. manufacturers, including First Solar. The tariffs are expected to increase import costs for foreign producers and could benefit domestic manufacturers by reducing price competition.
Market Context
First Solar’s market capitalization stood at $25.96 billion as of February 22, 2026, with a price‑to‑earnings ratio of 18.45. The company’s stock closed at $242.15 on February 22, 2026, following a 52‑week high of $285.99 on December 21, 2025, and a 52‑week low of $116.56 on April 8, 2025. Despite the recent share decline, the firm remains a significant player in the U.S. solar module market, leveraging advanced thin‑film semiconductor technology to produce high‑efficiency, low‑cost solar modules.
