ETFs in Spotlight as First Solar Shares Jump Post Q2 Earnings Beat

Shares of First Solar Inc. FSLR gained 2.5% on July 31, 2026, following the release of its second-quarter results after the market closed on July 30. The stock continued its upward momentum over subsequent trading sessions, surging 18.3% since the announcement.

The solar panel manufacturer comfortably surpassed Wall Street's earnings expectations, despite narrowly missing revenue estimates.

This rally in FSLR’s share price reflects increased investor optimism surrounding its strong profitability. The earnings beat, driven by expanding gross margins and strong operational execution, coupled with reaffirmed full-year guidance, provides confidence in FSLR's near-term momentum and reinforces its position as the largest solar panel manufacturer in the United States.

However, direct equity ownership in FSLR carries distinct single-stock concentration risks. As a domestic manufacturer, First Solar’s long-term profitability remains heavily dependent on federal policy incentives as well as favorable trade protections against foreign solar module imports.

Against this backdrop, investors looking to capitalize on First Solar's upward momentum while maintaining a diversified approach may want to focus on exchange-traded funds (ETFs) that hold significant exposure to the stock. 

But before identifying those specific ETFs, it is worth taking a closer look at the key metrics behind First Solar's impressive quarterly beat and the solid contracted backlog that underpins its multi-year outlook.

Brief Analysis of FSLR's Q2 Results

The bottom line surpassed the Zacks Consensus Estimate by 1.2%, while revenues missed the consensus mark by 0.4%. A similar trend was visible on a year-over-year basis as well, with its top line declining 4% but bottom line improving 23.3%.   

The sales decline was on account of lower revenues associated with customer contract terminations. 

The company reached an important milestone in the second quarter, exceeding 100 gigawatts (GW) of cumulative module sales globally. As of June 30, 2026, FSLR’s contracted backlog totaled 45.1 GW with an aggregate transaction value of $13.6 billion. 

Its gross margin expanded 1180 basis points (bps) from the second quarter of 2025, driven by net IEEPA tariff-related benefit, higher mix of modules qualifying for Section 45X tax credits and lower logistics costs. 

Looking ahead, FSLR’s South Carolina facility is expected to provide up to 3.5 GW of finishing capacity for modules, with the first phase of the finishing facility remaining on track to begin production in the second half of 2026. FSLR expects the second phase of the facility to be completed by mid-2027. The company expects its 2026 results to reflect a net-tariff impact of $60 million to $80 million.

First Solar-Heavy ETFs in Focus

Invesco Solar ETF TAN  

This fund, with a market value worth $1.41 billion, provides exposure to 35 companies from the solar energy industry. Of these, First Solar takes the first spot, holding 10.60% of the fund.  

TAN has gained 8.7% year to date and charges 70 basis points (bps) in fees. 

Virtus Duff & Phelps Clean Energy ETF VCLN  

This fund, with net assets worth $5.6 million, provides exposure to companies involved in clean energy innovation and commercialization across the utility, industrial, technology and energy sectors. First Solar takes the first spot in VCLN's holdings, comprising 8.71% of the fund.  

VCLN has rallied 12.2% year to date and charges 59 bps in fees. 

iShares Global Clean Energy ETF ICLN  

This fund, with net assets worth $2.25 billion, offers exposure to 105 global companies involved in clean energy. Of these, First Solar takes the first spot, holding 8.67% of the fund. 

ICLN has risen 12.2% year to date and charges 39 bps in fees.  

Global X CleanTech ETF CTEC  

This fund, with net assets worth $25.5 million, offers exposure to 40 companies 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 second spot, holding 7.43% of the fund.  

CTEC has rallied 10.1% year to date and charges 50 bps in fees.  

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

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