Is First Solar (FSLR) One of the Best Solar Energy Stocks to Buy Right Now?

Key Takeaways

• Q1 net sales hit $1.04 B, 24% YoY growth.
• Net income rose 65% to $347 M, EPS $3.22.
• Backlog stands at 47.9 GW, supporting future revenue.
• Full‑year 2026 sales forecast $4.9‑$5.2 B, EBITDA $2.6‑$2.8 B.
• Domestic thin‑film production reduces reliance on Chinese supply chains.

Pulse Analysis

The utility‑scale solar market is entering a rapid expansion phase, propelled by declining module costs, aggressive renewable‑energy mandates, and generous federal tax incentives such as the Section 45X credit. Analysts expect global solar capacity additions to exceed 200 GW in 2026, with the United States accounting for a sizable share as states pursue net‑zero targets. This macro backdrop creates a fertile environment for manufacturers that can deliver high‑efficiency, cost‑competitive modules at scale.

First Solar distinguishes itself through its cadmium‑telluride thin‑film technology, which offers lower balance‑of‑system costs and superior performance in high‑temperature, low‑light conditions. The company’s Q1 results—24% sales growth and a 65% jump in net income—reflect both strong demand for its modules and operational efficiencies gained from its South Carolina finishing facility. A 47.9 GW backlog, coupled with a projected 17‑18 GW annual volume, underscores the firm’s ability to translate pipeline orders into revenue, while its domestic supply chain reduces exposure to tariffs and geopolitical disruptions that have plagued many polysilicon‑based rivals.

For investors, First Solar presents a blend of growth and resilience. The reaffirmed full‑year guidance of up to $5.2 billion in sales and $2.8 billion in EBITDA suggests a trajectory that outpaces many peers, especially as the company leverages tax credits and a stable policy environment. While valuation metrics remain premium, the firm’s cash position of $2 billion provides flexibility for further capacity expansion and R&D. Compared with emerging AI plays that promise higher upside but greater volatility, First Solar offers a more predictable earnings profile anchored in the accelerating transition to clean energy.