First Solar Accelerates Growth Through Capacity Expansion & Innovation

First Solar, Inc. FSLR continues to expand its manufacturing capacity, which is expected to boost its revenue stream. The company benefits from being a leading global provider of comprehensive PV solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology.

However, this Zacks Rank #3 (Hold) company faces competitive pressure from global solar manufacturers.

Factors Acting in Favor of FSLR Stock

First Solar has been investing heavily in the production ramp-up of its modules to expand its manufacturing capacity. The company manufactured 4.3 GW in the first quarter of 2026 and sold 3.8 GW of solar modules. Its total installed nameplate production capacity across all its facilities was approximately 23 GW as of Dec. 31, 2025.

In 2026, the company expects capital expenditures of $0.8-$1.0 billion as it continues to invest in expanding and modernizing its operations. These include the construction of a new manufacturing facility, ongoing research and development initiatives, and upgrades to existing machinery and equipment aimed at enhancing efficiency and performance.

FSLR is advancing research on perovskite thin-film semiconductor technology to enhance solar module efficiency and reduce costs. Supported by its California and European Technology Centers, FSLR is focused on improving the efficiency and stability of this technology to develop a commercially scalable product. As part of its expansion efforts, the company is also building a dedicated perovskite development line at its Ohio facility.

Headwinds for FSLR Stock

First Solar believes that solar cell and module manufacturers, particularly in China, possess significant installed production capacity relative to global demand, along with the ability to expand capacity further. If First Solar’s competitors reduce module pricing to levels near or below their manufacturing costs, or are able to operate at minimal or negative operating margins for sustained periods of time, or if global demand for PV modules decreases from installed production capacity, it might hurt the company’s business, financial condition and results of operations.

FSLR’s Share Price Performance

In the past three months, shares of the company have risen 28.8% compared with the industry’s 14.2% growth.

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Stocks to Consider

Some better-ranked stocks from the same sector are T1 Energy Inc TE, FuelCell Energy FCEL and GE Vernova Inc. GEV, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for TE’s 2026 earnings per share (EPS) implies an increase of 85.3% from that recorded in 2025. The Zacks Consensus Estimate for TE’s 2026 sales implies year-over-year growth of 19.1%. 

The Zacks Consensus Estimate for FCEL’s fiscal 2026 EPS implies an increase of 59.4% from that recorded in fiscal 2025. The company delivered an average earnings surprise of 14.4% in the last four quarters. 

The Zacks Consensus Estimate for GEV’s 2026 EPS implies an increase of 72.9% from that recorded in 2025. The company delivered an average earnings surprise of 83.6% in the last four quarters.

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

Zacks Investment Research

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