Key Points
First Solar saw strong growth in 2025, but 2026 doesn't look so great.
Analysts expected another big year after record sales of $5.2 billion in 2025.
Disappointing guidance is sinking the stock today.
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Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) are tanking today. The company ended the year strong, but management disappointed investors with guidance for 2026.
First Solar stock tanked nearly 20% on the news, and remained down by 15.2% as of 10:41 a.m. ET.
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Growing domestic supply
First Solar's fourth-quarter report wasn't bad at all. It culminated a strong year for the company, with sales growing 24% to $5.2 billion. More good news from the company during the fourth quarter included the commissioning of a new manufacturing facility in Louisiana and plans for a new 3.7 gigawatt solar panel production facility in South Carolina.
That's about where the good news ended for investors, though. Guidance for 2026 implied no sales growth and possibly a decline in revenue. That was a severe disappointment, with analysts expecting about $6.2 billion in 2026 sales, according to FactSet Research.
Investors have been betting that First Solar's growing capacity will pay off. The stock soared last year, and remains 35% higher over the last 12 months, even after today's plunge. But guidance implying no sales growth isn't what investors wanted to see.
After a strong run in shares last year, it will likely take a beat on that 2026 guidance for First Solar shares to get another boost higher.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems and First Solar. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
