First Solar Inc. (FSLR) shares closed at $257.85 on Friday, climbing 3.6% for the session and posting a 10.5% gain over the past week. The stock rose in three consecutive sessions after a midweek dip, bringing it within 10% of its 52-week high. The rally came ahead of the Memorial Day market holiday, with U.S. stock markets closed on Monday.
The buying wave was largely tied to First Solar's position as a leading U.S. solar panel manufacturer, benefiting from trade policies that include tariffs and local-content mandates. According to reports, U.S. tariffs and stricter trade enforcement have driven up the cost of imported panels, giving domestic producers like First Solar greater pricing power as developers increasingly opt for American-made products.
Adding to the positive momentum, GameChange Solar announced a strategic partnership with First Solar earlier this week to deploy India-made thin-film solar modules. These modules use a thin semiconductor layer rather than conventional crystalline silicon. The companies highlighted two utility-scale projects in India where First Solar modules are paired with GameChange tracking systems, achieving uptime near 99.8%. First Solar's Sujoy Ghosh stated the partnership offers developers "greater certainty," while GameChange's Vikram Kenjale emphasized "consistent generation over the day."
First Solar also received a boost from its first-quarter financial results. The company reported net sales of $1.04 billion, up 24% year-over-year, and net income of $347 million, or $3.22 per share. Management maintained its 2026 revenue guidance of $4.9 billion to $5.2 billion. CEO Mark Widmar described the quarter as a "strong start to 2026," adding that the company's "competitive position continues to strengthen."
Investors also focused on First Solar's contracted backlog, which stood at 47.9 gigawatts (GW) as of March 31, with deliveries scheduled through 2030. The backlog represents future module deliveries under contract, underscoring the company's long-term demand visibility.
In comparison, SolarEdge Technologies ended Friday down 1.7%, while Sunrun added 1.2%. The Invesco Solar ETF rose 1.6%, reflecting broader strength in the solar sector. The broader market also closed higher, with the S&P 500 gaining 0.37% and the Dow Jones Industrial Average up 0.58%.
However, the outlook remains complex. First Solar's leadership has linked future moves to U.S. trade policy, particularly Section 232 tariffs tied to national security. Management told investors that production in Malaysia and Vietnam could continue at full capacity, shift some work to U.S. finishing plants, or see some lines shut down depending on demand and tariff dynamics. Running factories below efficient levels could squeeze near-term margins.
With markets reopening Tuesday after the holiday, traders will watch to see if the buying momentum holds at the $258 level, especially in the absence of new company filings, tariff announcements, or India-related news. The key question for First Solar remains whether policy support and U.S. factory orders can offset headwinds from tariffs, slow permitting, and customer delays. For now, the market has sided with the company, but the next session will test if this was merely pre-holiday positioning.
