As tariff tensions escalate, one stock has emerged as the lone bright spot in the solar sector. With the U.S. slapping a jaw-dropping 3,521% duty on select solar goods from Cambodia - the steepest penalty following a probe into four Southeast Asian nations - Arizona-based First Solar, Inc. (FSLR) had appeared to be a clear winner. 

While Malaysia got off relatively lightly with sub-35% tariffs, the overall clampdown targets $11.9 billion worth of 2023 shipments that once formed the backbone of U.S. solar imports. The sharp turn of events stems from claims that Chinese companies, operating out of Southeast Asia, benefited from subsidies that crushed American manufacturing. 

First Solar, which brought the case last year, now finds itself in the spotlight. Its stock surged 10.5% on April 22 following the news. With U.S. warehouses already stocked and Chinese players pivoting to countries like Indonesia and Laos, why did U.S.-based FSLR get slapped with a new “Sell” rating after earnings today?

About First Solar Stock

First Solar, Inc. (FSLR) has long stood as a pillar of American innovation in the solar industry. Headquartered in Tempe, Arizona, this $13.49 billion company is the only U.S.-based name among the world's solar giants. Specializing in photovoltaic solar modules made with advanced thin-film semiconductor technology, FSLR offers a greener, lower-carbon alternative to traditional crystalline silicon panels.

First Solar has underperformed in 2025, with the stock tumbling 28.09% year-to-date. However, the stock is slightly higher today - even after the company missed on earnings, and offered bleak guidance - amid widespread buying on Wall Street.

Valuation-wise, the stock is currently trading at 8.27 times forward adjusted earnings, representing a significant discount to both its industry counterparts and its own five-year average. Moreover, FSLR's historically discounted 2.39 price/sales ratio underscores the headwinds that the solar specialist has been facing in a high interest-rate market. 

A Closer Look at First Solar’s Q1 Earnings

FSLR is trading higher today despite reporting Q1 earnings that fell short of expectations. The company reported first-quarter net income of $209.5 million, or $1.95 per share, against expectations for $2.50 per share. Revenue of $844.6 million also fell short of the $850.8 consensus on Wall Street.

For the full fiscal year, First Solar expects to earn $12.50 and $17.50 per share, with revenue projected anywhere between $4.5 billion to $5.5 billion. That's a wide range, and a considerable reduction from management's previous guidance, which called for EPS of $17 to $20 and revenue of $5.3 billion to $5.8 billion for fiscal 2025.

How Tariffs Are Impacting First Solar

The top range of FSLR's guidance is baking in the expectation that 10% tariffs will remain in place through 2025, while the lower range accounts for a broader range of potential outcomes.

While First Solar may be based out of Arizona, CEO Mark Widmar cited a "significant economic headwind for our manufacturing facilities in [India, Malaysia, and Vietnam] selling into the U.S. market" due to the implementation of reciprocal tariffs.

“There's a lot of strategies that we could do once we understand the policy environment and the tariff environment that we're going to be in, but I don't know any of that right now,” added Widmar later in the call. “So, our guide is taking the limited information that we have, applying that and it does reflect a meaningful reduction to volume in the low end for sure. Top end, it's relatively small 700 megawatts.”

What Do Analysts Expect for First Solar Stock?

FSLR stock was hit with multiple downgrades today following its soft guidance, as experts at Oppenheimer, KeyBanc, and Jefferies all lowered their ratings.

In a note to clients, KeyBanc analyst Sophie Karp cut FSLR all the way to “Underweight” - a rare bearish note for the “Strong Buy”-rated stock. Karp has a $100 price target on First Solar, marking a new Street-low forecast.