We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs in Focus Post First Solar's Q4 Earnings Miss, Weak Sales View
Read MoreHide Full Article
Key Takeaways
FSLR fell 12.7% after missing Q4 earnings and issuing a soft 2026 sales guidance.
First Solar expects up to $135M tariff hit and is idling Southeast Asia factories.
TAN and CTEC hold significant FSLR stakes, tracking its moves closely.
Shares of First Solar Inc. (FSLR - Free Report) slumped 12.7% in the after-hours trading session on Feb. 24, 2026 (as cited in Seeking Alpha), after the company released mixed fourth-quarter 2025 results. The solar panel manufacturer once again failed to beat analysts’ expectations for its earnings. Its revenue guidance for 2026 also lagged Wall Street’s estimates.
Despite lagging the earnings estimate, FSLR managed to beat its top-line estimate for the fourth quarter.
However, the pullback in the solar panel maker’s share price following the fourth-quarter results reflects investor skepticism surrounding its poor earnings performance, while its weak sales guidance also does not seem very assuring of any near-term recovery as unfavorable U.S. tariff policies continue to cloud the clean energy industry’s prospects.
Considering this, one must remain mindful of the fact that FSLR remains the largest solar panel manufacturer in the United States, and against this backdrop, investors who are still interested in gaining exposure to this stock may want to focus on exchange-traded funds (ETFs) that are heavily exposed to First Solar.
But before identifying those ETFs, it is worth first taking a closer look at the specific numbers behind First Solar's disappointing quarterly report and the cloudy guidance that is weighing on its near-term prospects.
Brief Analysis of FSLR’s Q4 Results
First Solar’s fourth-quarter 2025 earnings missed the Zacks Consensus Estimate by 7.3%, while revenues beat the consensus mark by 7%. On a year-over-year basis, its top and bottom lines improved by double-digit percentages.
A double-digit sales volume increase of solar modules was the primary driver behind its stellar year-over-year performance in the fourth quarter.
Factors like a higher mix of U.S.-manufactured modules benefiting from Section 45X tax credits, lower non-standard freight charges due to reduced international shipments and the resolution of the glass supply-chain disruption experienced in the third quarter at FSLR’s Alabama facility boosted the company’s quarterly gross profit.
The company ended the fourth quarter with a net cash balance worth $2.4 billion, which represented an increase of $0.9 billion from the prior quarter.
FSLR expects to generate revenues of $4.9-$5.2 billion in 2026, the midpoint of which is lower than the Zacks Consensus Estimate of $5.08 billion. The lower end of the company’s guidance indicates a year-over-year deterioration of 5.8%.
To this end, it is imperative to mention that First Solar expects a direct financial hit of up to $135 million in 2026 due to new tariffs and is strategically idling its Southeast Asian factories to navigate this uncertain trade environment. Despite these costs, the company believes its status as a domestic manufacturer will ultimately be an advantage, as competitors tied to Chinese supply chains face even steeper risks from retroactive taxes and stricter legal enforcement.
This fund, with a market value worth $1.57 billion, provides exposure to 30 companies from the solar energy industry. Of these, First Solar takes the fourth spot, holding 6.69% of the fund.
TAN has gained 14.7% year to date and charges 70 basis points (bps) in fees.
This fund, with net assets worth $5.7 million, provides exposure to companies involved in clean energy innovation and commercialization across the utility, industrial, technology and energy sectors. First Solar takes the third spot in VCLN’s holdings, comprising 5.69% of the fund.
VCLN has rallied 10.9% year to date and charges 59 bps in fees.
This fund, with net assets worth $2.14 billion, offers exposure to 100 companies that produce energy from solar, wind and other renewable sources. Of these, First Solar takes the third spot, holding 6.06% of the fund.
ICLN has risen 11.6% year to date and charges 39 bps in fees.
This fund, with net assets worth $27.9 million, offers exposure to 38 companies that are involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and/or the production and provision of pollution-reducing products and solutions. Of these, First Solar takes the seventh spot, holding 4.49% of the fund.
CTEC has rallied 11.3% year to date and charges 50 bps in fees.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
ETFs in Focus Post First Solar's Q4 Earnings Miss, Weak Sales View
Key Takeaways
Shares of First Solar Inc. (FSLR - Free Report) slumped 12.7% in the after-hours trading session on Feb. 24, 2026 (as cited in Seeking Alpha), after the company released mixed fourth-quarter 2025 results. The solar panel manufacturer once again failed to beat analysts’ expectations for its earnings. Its revenue guidance for 2026 also lagged Wall Street’s estimates.
Despite lagging the earnings estimate, FSLR managed to beat its top-line estimate for the fourth quarter.
However, the pullback in the solar panel maker’s share price following the fourth-quarter results reflects investor skepticism surrounding its poor earnings performance, while its weak sales guidance also does not seem very assuring of any near-term recovery as unfavorable U.S. tariff policies continue to cloud the clean energy industry’s prospects.
Considering this, one must remain mindful of the fact that FSLR remains the largest solar panel manufacturer in the United States, and against this backdrop, investors who are still interested in gaining exposure to this stock may want to focus on exchange-traded funds (ETFs) that are heavily exposed to First Solar.
But before identifying those ETFs, it is worth first taking a closer look at the specific numbers behind First Solar's disappointing quarterly report and the cloudy guidance that is weighing on its near-term prospects.
Brief Analysis of FSLR’s Q4 Results
First Solar’s fourth-quarter 2025 earnings missed the Zacks Consensus Estimate by 7.3%, while revenues beat the consensus mark by 7%. On a year-over-year basis, its top and bottom lines improved by double-digit percentages.
A double-digit sales volume increase of solar modules was the primary driver behind its stellar year-over-year performance in the fourth quarter.
Factors like a higher mix of U.S.-manufactured modules benefiting from Section 45X tax credits, lower non-standard freight charges due to reduced international shipments and the resolution of the glass supply-chain disruption experienced in the third quarter at FSLR’s Alabama facility boosted the company’s quarterly gross profit.
The company ended the fourth quarter with a net cash balance worth $2.4 billion, which represented an increase of $0.9 billion from the prior quarter.
FSLR expects to generate revenues of $4.9-$5.2 billion in 2026, the midpoint of which is lower than the Zacks Consensus Estimate of $5.08 billion. The lower end of the company’s guidance indicates a year-over-year deterioration of 5.8%.
To this end, it is imperative to mention that First Solar expects a direct financial hit of up to $135 million in 2026 due to new tariffs and is strategically idling its Southeast Asian factories to navigate this uncertain trade environment. Despite these costs, the company believes its status as a domestic manufacturer will ultimately be an advantage, as competitors tied to Chinese supply chains face even steeper risks from retroactive taxes and stricter legal enforcement.
First Solar-Heavy ETFs in Focus
Invesco Solar ETF (TAN - Free Report)
This fund, with a market value worth $1.57 billion, provides exposure to 30 companies from the solar energy industry. Of these, First Solar takes the fourth spot, holding 6.69% of the fund.
TAN has gained 14.7% year to date and charges 70 basis points (bps) in fees.
Virtus Duff & Phelps Clean Energy ETF (VCLN - Free Report)
This fund, with net assets worth $5.7 million, provides exposure to companies involved in clean energy innovation and commercialization across the utility, industrial, technology and energy sectors. First Solar takes the third spot in VCLN’s holdings, comprising 5.69% of the fund.
VCLN has rallied 10.9% year to date and charges 59 bps in fees.
iShares Global Clean Energy ETF (ICLN - Free Report)
This fund, with net assets worth $2.14 billion, offers exposure to 100 companies that produce energy from solar, wind and other renewable sources. Of these, First Solar takes the third spot, holding 6.06% of the fund.
ICLN has risen 11.6% year to date and charges 39 bps in fees.
Global X CleanTech ETF (CTEC - Free Report)
This fund, with net assets worth $27.9 million, offers exposure to 38 companies that are involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and/or the production and provision of pollution-reducing products and solutions. Of these, First Solar takes the seventh spot, holding 4.49% of the fund.
CTEC has rallied 11.3% year to date and charges 50 bps in fees.