Wall Street Zen Downgrades First Solar to 'Hold'

Analysts cite weak sales guidance and disappointing Q1 outlook as reasons for the downgrade.

Published on Feb. 28, 2026

Got story updates? Submit your updates here. ›

Wall Street Zen, an equity research firm, has downgraded shares of First Solar (NASDAQ:FSLR) from a 'buy' rating to a 'hold' rating in a research note published on Saturday. The downgrade comes after First Solar reported Q4 earnings that missed consensus estimates, despite a revenue beat. Analysts noted concerns over the company's reliance on tax credits and a tapering backlog, which raise longer-term risk concerns.

Why it matters

First Solar is a leading U.S. solar technology company, so this downgrade from a prominent research firm could impact investor sentiment and the stock's performance in the near term. The concerns raised about First Solar's financial outlook and reliance on tax credits are also relevant to the broader solar industry as it navigates shifting market dynamics.

The details

In the research note, Wall Street Zen analysts cited First Solar's weak sales guidance for 2026 and disappointing Q1 outlook as key factors behind the downgrade. The company reported Q4 earnings that missed consensus estimates, despite a revenue beat. Analysts noted that First Solar's reliance on tax credits (45X) and a tapering backlog raise longer-term risk concerns.

  • First Solar reported Q4 2025 earnings on February 24, 2026.
  • Wall Street Zen published its downgrade on February 28, 2026.

The players

Wall Street Zen

An equity research firm that covers the solar industry and has downgraded First Solar's stock from 'buy' to 'hold'.

First Solar (NASDAQ:FSLR)

A U.S.-based solar technology company that designs and manufactures thin-film photovoltaic modules using cadmium telluride technology.

Got photos? Submit your photos here. ›

What they’re saying

“We must reassess First Solar's revenue and backlog trajectory given the weak sales guidance and disappointing Q1 outlook.”

— Wall Street Zen Analyst (Wall Street Zen)

What’s next

Investors will be closely watching to see if First Solar can address the concerns raised by Wall Street Zen and regain analyst confidence in the coming quarters.

The takeaway

This downgrade highlights the challenges facing solar companies as they navigate shifting market dynamics and regulatory changes. Investors in the sector will need to closely monitor financial performance and outlook to identify the most promising long-term opportunities.