DZ Bank Downgrades First Solar to 'Strong Sell'

Analysts cite concerns over revenue and backlog trajectory

Published on Feb. 28, 2026

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First Solar (NASDAQ:FSLR), a leading U.S. solar technology company, was downgraded to a 'strong sell' rating by analysts at DZ Bank on Thursday. The downgrade comes after the company reported Q4 earnings that missed consensus estimates, with concerns raised over First Solar's reliance on tax credits and a tapering order backlog.

Why it matters

First Solar is one of the largest solar module manufacturers in the U.S., so this downgrade from a major research firm could signal broader challenges facing the solar industry. Investors will be closely watching how First Solar navigates potential headwinds around revenue growth and margin pressures.

The details

In their research note, DZ Bank analysts cited First Solar's weaker-than-expected Q4 earnings and disappointing forward guidance as key factors behind the downgrade. The company reported Q4 EPS below consensus estimates, despite beating on revenue. Analysts noted concerns over First Solar's heavy reliance on tax credits to maintain profitability, as well as signs of its project backlog beginning to taper off.

  • First Solar reported Q4 2025 earnings on February 24, 2026.
  • DZ Bank issued the 'strong sell' rating on February 28, 2026.

The players

First Solar

A leading U.S. solar technology company that designs and manufactures thin-film photovoltaic modules.

DZ Bank

A major German bank that provides research coverage on First Solar and other solar industry stocks.

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What they’re saying

“We must downgrade First Solar to a 'strong sell' rating due to the concerning trends we're seeing in their financial results and forward outlook.”

— DZ Bank Analyst (DZ Bank)

What’s next

Investors will be closely watching how First Solar responds to the downgrade and whether the company can address the concerns raised by DZ Bank around its revenue growth and margin sustainability.

The takeaway

This downgrade from a major research firm highlights the challenges facing the solar industry, even for leading players like First Solar. It underscores the importance of diversified revenue streams and prudent financial management as solar companies navigate a shifting market landscape.