ETFs in Focus Post First Solar's Q4 Earnings Miss, Weak Sales View

Shares of First Solar Inc. FSLR 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

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

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

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

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.

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First Solar, Inc. (FSLR): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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