Overview
Bloom Energy
BE · NYSEQ3 2026Electrical Equipment · Fuel Cells and Onsite Power
Since the Report + 1.7%
Revenue grew 138.1% year over year, EPS beat the estimate by 38.2%; the stock fell 6.9% in its first reaction.
- RevenueQ3
- $1.24B
- ▲ 138% Annual · 17.7% Above Estimate
- EPSAdjusted
- $0.94
- Estimate $0.68 · 38.2% Beat
Verdict
BUYBloom Energy beat revenue estimates by 17.7% and earnings by 38.2% in a record quarter, and raised its full-year guidance for the third time this year. The stock still fell 6.9% after hours; it had already dropped 8.7% in the session, and operating cash flow turned negative. The measure to watch next is whether cash flow turns positive in the fourth quarter.
Close on Report DayOct 22
$217.77▼ 6.9%Report-Day Move
- Market Cap(Today)
- ≈ $65.5 B
- 1Y Return(At Report)
- + 109%
- P/E(At Today's Price · $2.61 · Trailing 12M)
- 84.9
- PEG(Company Guidance 2026)
- 0.26
- Net Margin(Trailing 12M)
- 13.5%
Earnings Summary
In 30 Seconds- Revenue of $1.24B beat estimates by 17.7%, and adjusted EPS of $0.94 beat by 38.2%.
- Full-year revenue guidance was raised for the third time this year, to a $4.4-4.6B range.
- The stock fell 6.9% after hours as operating cash flow turned negative amid a weak market.
The Numbers
Adjusted Gross Margin
34.5%
▲ 4.1 Points Year Over Year
Adjusted EBITDA
$299.5M
▲ 408% Year Over Year
Operating Cash Flow
−$27.1M
Q2 Was +$226.4M
Stock Reaction
▼ 6.9%
After Hours · Price Is Oct. 22 Close
Quarterly Revenue ($ Billion)
0.52
Q3 25 · $519 M
0.78
Q4 25 · $778 M · QoQ + 49.8%
0.75
Q1 26 · $751 M · QoQ − 3.4%
1.07
Q2 26 · $1.07 B · QoQ + 41.8%
1.24
Q3 26 · $1.24 B · QoQ + 16.0% · YoY + 138.1%
1.35–1.55
Q4 26E · 1.35–1.55 · QoQ + 17.3% · YoY + 86.4%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26E
Q4 2026 Company Guidance
- Revenue (Full Year)4.4 – 4.6 B4.4 B4.6 B4.4 – 4.6 B
Midpoint 4.50 · Market Expectation 4.109.8% Above Estimate ▲
- Adjusted EPS (Full Year)3.1 – 3.4 $3.1 $3.4 $
Midpoint 3.25 · Market Expectation 2.7319.0% Above Estimate ▲
- Adjusted Operating Income960 – 1,030 M960 M1,030 M
Prior 800–900Raised 17.1% ▲
- Adjusted Gross Margin34%
Last Quarter Actual 34.5%Flat
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±18% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Product$1.07 BShare 86.9%▲ 179.4% YoY
- Installation$84.9 MShare 6.9%▲ 29.0% YoY
- Service$67.6 MShare 5.5%▲ 15.3% YoY
- Electricity$9.82 MShare 0.8%▼ 5.2% YoY
Key Metrics
Adjusted EBITDA
$300 M
▲ 407.6% YoYPress Release
Non-GAAP Operating Income
$286 M
▲ 518.4% YoYPress Release
Non-GAAP Gross Margin
34.5%
Press Release
Cash and Equivalents
$2.49 B
Press Release
Stock-Based Compensation
$57.2 M
Press Release
Shares are computed over the segment total: $1.24 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“Electricity is the foundation of economic growth, human well-being and national competitiveness. What began with hyperscalers is rapidly moving across market segments because every business needs reliable power to grow. We will never increase our capacity in a step function. Our customer pipeline continues to grow and our backlog is continuing to expand faster than our revenue.”
- Demand Spreading Beyond Hyperscalers
- Incremental Capacity Growth
- Backlog Growing Faster Than Revenue
Summary and Review
Summary
Bloom Energy reported third-quarter revenue of $1.24 billion. Revenue rose 138% year over year and beat market expectations by 17.7%. Adjusted earnings per share were $0.94 against an expected $0.68, a 38.2% beat. The company raised its full-year revenue guidance to $4.4-4.6 billion, from a prior $3.9-4.2 billion. The midpoint is 9.8% above market expectations. All three gates, revenue, earnings and guidance, are open.
The stock fell 8.7% in the October 22 session, before the results, closing at $217.77. Selling continued after hours, and the price was $202.84 at 7:59 p.m. ET, 6.9% below the close. The Nasdaq also fell sharply that day on worries about AI capital spending. The market did not read this report as a growth story; it read it as a cash story. Operating cash flow turned negative by $27 million in the quarter.
Score 85, verdict buy. All three gates opened well above the 2% threshold. Adjusted operating income rose to $285.7 million. According to management, this single quarter's operating income exceeded all of last year's. The caveat that pulls the score down within the band is cash. Cash from operations was $226 million positive in the second quarter and turned negative this quarter. The CFO said this is not the start of a trend.
Full Review
Product sales are the growth engine.
Product revenue was $1.07 billion, up 179% year over year. About 87% of total revenue now comes from this line. Installation revenue grew 29% and service revenue 15%. Electricity sales fell 5% to $9.8 million. Demand comes from data centers. In the release, management said demand that began with hyperscalers is rapidly spreading to other market segments. On the call, it said it is in conversations with all the hyperscalers. Power was delivered to Oracle's Utah site in under two months. Every block of Nebius's 300-megawatt New Jersey project is also being kept ready. The company's largest US deployments have reached the 100-megawatt class. Installation and service revenue are growing more slowly than product sales. These lines follow deliveries, so their share can rise as the installed base grows.
Margins are widening and profits jumped.
Adjusted gross margin was 34.5%. A year earlier it was 30.4%, an expansion of 4.1 points. GAAP gross margin also rose from 29.2% to 33.8%. Adjusted operating income was $285.7 million, or 23.1% of revenue. A year earlier it was $46.2 million. Adjusted EBITDA grew 408% year over year to $299.5 million. GAAP net income was $250.3 million, compared with a $23.1 million loss a year earlier. The company kept its full-year gross margin guidance at 34%. That implies margin will hold flat near this quarter's 34.5% level. So profit growth from here will come more from volume than from margin. Flat margin guidance is therefore not a weakness; it means the level gained will be held.
Cash flow is the weak link this quarter.
Cash from operations was negative $27.1 million in the quarter. In the second quarter it was positive $226.4 million. Cash flow turning negative while profit jumps points to growing working capital needs. CFO Simon Edwards acknowledged that the company used cash from operations this quarter. But he said it is not the start of a trend. He described the business as self-funding. The balance sheet holds $2.49 billion in cash. That provides a cushion for capacity investment. Capital spending is focused on the Fremont and Newark facilities. At a fast-growing manufacturer, inventory and receivables swell before delivery, so cash lags revenue. Stock-based compensation was $57.2 million in the quarter. Until cash flow moves in the same direction as profit, the market will keep questioning it.
Guidance was raised for the third time this year.
Full-year revenue guidance rose from $3.9-4.2 billion to $4.4-4.6 billion. The midpoint is 9.8% above market expectations. Adjusted EPS guidance is $3.10-3.40, 19% above expectations. Even the low end of the new range exceeds the top of the prior $2.55-2.85 range. Adjusted operating income guidance is $960-1,030 million. That is a 17% increase from the prior range. The guidance implies roughly $1.35-1.55 billion of fourth-quarter revenue. Management said where results land in the range depends on the timing of a few year-end deliveries. No dollar figure was given for backlog. The company said backlog is growing faster than revenue and that it will provide guidance on it next quarter. No guidance was given for 2027.
Next quarter, watch a single number.
Of last quarter's expected developments, new data center deals materialized. AEP announced it will build a 702-megawatt Bloom fuel cell plant in Wyoming for Google. The Fremont manufacturing expansion is also continuing; management says it will add capacity in increments, not in one step. No SEC action related to the short-seller allegations has been seen. In the next report, look at one line: operating cash flow. If it turns positive in the fourth quarter, this quarter's negative figure was a timing difference and the growth story is intact. If it stays negative, growth is being financed with working capital. In that case the high valuation will remain under pressure. The second measure is backlog guidance. When the company gives that figure for the first time, how far demand runs ahead of revenue becomes measurable.
Looking Ahead
Strengths and Risks
5 Strengths · 6 RisksStrengths
5- Revenue beat estimates by 17.7% and adjusted earnings per share beat by 38.2%.
- Full-year revenue guidance was raised for the third time this year, to 9.8% above expectations.
- Adjusted gross margin expanded 4.1 points year over year to 34.5%.
- Product revenue rose 179% year over year to $1.07 billion.
- AEP announced a 702-megawatt Bloom plant in Wyoming for Google.
Risks
6- Operating cash flow swung from $226 million positive in the second quarter to $27 million negative.
- Full-year gross margin guidance is fixed at 34%Margin expansion may pause.
- The fourth-quarter result depends on the timing of a few large year-end deliveries.
- Demand relies heavily on hyperscale data center customers.
- Short-seller reports published in July and August and a shareholder lawsuit create uncertainty.
- The stock is down about 40% from its June peak, and volatility is high.
What to Watch
5- ~February 2027Q4 2026 earnings; full-year guidance calls for $4.4-4.6 billion in revenue.
- Q4 2026 earningsThe company said it will provide guidance on backlog for the first time.
- Year-end 2026Timing of a few large deliveries will decide where full-year results land in the range.
- Fremont expansion — incremental capacity growth beyond the 5 GW manufacturing milestone continues; no timeline given.
- End of 2028AEP's 702-megawatt Wyoming plant is targeted to reach full capacity.
Upcoming Earnings
To Understand This