ETFs to Watch as First Solar Gains 14% Despite Missing Q3 Earnings

Shares of First Solar Inc. (FSLR) surged a solid 14.3% during the last trading session, after the company released mixed third-quarter 2025 results. While the solar panel manufacturer failed to beat analysts’ expectations for its earnings, it managed to beat the same for its revenues (as per Motley Fool, cited in a Yahoo Finance report).

Despite lagging the earnings estimate, FSLR announced an upbeat outlook for its 2025 results, which must have caused the rally in its stock price on the bourses.

Considering the fact that several analysts hiked their price targets on First Solar stock following the third-quarter release, exchange-traded fund (ETF) investors might want to keep a watch on funds that are heavily exposed to First Solar. This is because the elevated revenue and earnings guidance reflect solid growth potential for First Solar, which has been further strengthened by the recent improvement in U.S.-China trade relations following last week’s rare-earth deal signing. Consequently, clean energy ETFs with significant FSLR weightings have become more attractive to investors seeking to benefit from the ongoing renewables tailwinds.

ETFs like Invesco Solar ETF (TAN), Virtus Duff & Phelps Clean Energy ETF (VCLN), iShares Global Clean Energy ETF (ICLN) and Global X CleanTech ETF (CTEC) provide diversified exposure to First Solar’s growth while spreading risk across other leading renewable energy players.

Now, before diving into the specifics of these ETFs, let us do a detailed analysis of how First Solar performed in the third quarter, in terms of other metrics.

A Brief Analysis of FSLR’s Q3 Results

First Solar’s third-quarter 2025 earnings and revenues missed their respective Zacks Consensus Estimate. However, on a year-over-year basis, both its top and bottom lines improved by double-digit percentages.

However, its gross margin deteriorated 1190 basis points (bps) to 38.3% owing to higher logistics, detention, and demurrage charges and a lower sales mix of modules qualifying for the advanced manufacturing production credit under Section 45X of the IRC.

The company ended the first nine months of 2025 with cash flow from operating activities worth $815.2 million compared with $407 million in the year-ago quarter.

During the third quarter, FSLR commenced production of Series 7 modules at its new manufacturing facility in Louisiana, bringing its total installed nameplate production capacity across all its facilities to approximately 23.5 gigawatts (GW).

As of Sept. 30, 2025, First Solar entered into contracts with customers for the future sale of 53.7 GW of solar modules for an aggregate transaction price of $16.4 billion, which it expects to recognize as revenues through 2030. This reflects another aspect of solid long-term growth potential for FSLR.

In line with this, the consensus estimate for long-term (three-to-five years) earnings growth for FSLR is pegged at a solid 35%, which lies above the industry’s 22.4%.

Following the company’s third-quarter earnings, Morgan Stanley raised its share price target for First Solar to $275 from $253.

First Solar-Heavy ETFs to Watch

Invesco Solar ETF (TAN)

This fund, with net asset value (NAV) of $49.13 per share, provides exposure to 30 companies from the solar energy industry. Of these, First Solar takes the second spot, holding 11.15% of the fund.

TAN has surged 48.3% year to date and charges 71 basis points (bps) in fees.

Virtus Duff & Phelps Clean Energy ETF (VCLN)

This fund, with net assets worth $5.2 million, provides exposure to companies involved in clean energy innovation and commercialization across the utility, industrial, technology, and energy sectors. First Solar takes the second spot in VCLN’s holdings, comprising 7.05% of the fund.

VCLN has surged 54.5% year to date and charges 59 bps in fees.

iShares Global Clean Energy ETF (ICLN)

This fund, with net assets worth $1.95 billion, offers exposure to 101 companies that produce energy from solar, wind, and other renewable sources. Of these, First Solar takes the second spot, holding 8.46% of the fund.

ICLN has soared 53.6% year to date and charges 39 bps in fees.

Global X CleanTech ETF (CTEC)

This fund, with net assets worth $30.3 million, offers exposure to 38 companies that are involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and/or the production and provision of pollution-reducing products and solutions. Of these, First Solar takes the fifth spot, holding 5.89% of the fund.

CTEC has surged 29.5% year to date and charges 50 bps in fees.

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

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