Bloom Energy (NYSE: BE), which makes solid-oxide fuel cells that generate electricity on site, reported revenue of $1.07B for the second quarter ended June 30, 2026, up 165.5% from the year-ago quarter. The company is a live example of a theme that matters to investors: AI data centers need power faster than the grid can deliver it. The shares closed at $221.31 on Oct. 16, 2026, down 6.34% that day, ahead of earnings due Oct. 22.
Key facts
- Revenue: $1.07B in the quarter ended June 30, 2026, versus $401.2M a year earlier. Analysts had expected $826.1M, according to the data we track.
- Profit: net income was $196.3M, versus a loss of $42.6M a year earlier. Diluted EPS (profit per share) was 0.62, versus -0.18.
- Cash: free cash flow (cash from operations minus capital spending) was $174.8M in the quarter ended June 30, 2026.
- Share price: $221.31 on Oct. 16, 2026, inside a 52-week range of $75.70 to $351.28.
- Next report: Oct. 22, 2026, with analysts expecting EPS of 0.688 and revenue of $1.06B.
What is the theme?
AI data centers use large amounts of electricity, and connecting a new site to the power grid can take a long time. Some operators are therefore looking at "behind-the-meter" power: generating electricity on the property instead of waiting for a utility. Fuel cells are one option. They convert natural gas or hydrogen into electricity through a chemical reaction instead of burning it. Bloom Energy is the largest listed US company in this niche, and its results show how much of that demand is turning into real orders.
What happened
Bloom reported its second-quarter results on July 28, 2026. Both headline figures beat expectations. Adjusted EPS was 0.78 against an estimate of 0.4061. Revenue was $1.07B against an estimate of $826.1M, a beat of 29.0%. The 0.78 figure is the one compared with analyst estimates. The 0.62 diluted EPS comes from the company's filing, and the two measures differ in what they include.
The segment data shows where the growth came from. Product revenue, which is the sale of the fuel cell systems themselves, was $935.4M, up from $296.6M a year earlier. Installation revenue was $52.8M, up from $38.2M. Service revenue was $69.0M, up from $54.4M. Electricity revenue, from selling power under long-term contracts, fell to $10.0M from $12.8M. Almost all of the growth came from selling equipment, not from recurring revenue. That distinction matters when judging how steady the business is.
Five quarters of margins and cash
| Quarter ended | Revenue | Gross margin | Operating margin | Net income | Free cash flow | |---|---|---|---|---|---| | June 30, 2025 | $401.2M | 36.1% | 8.5% | -$42.6M | -$220.4M | | Sept. 30, 2025 | $519.0M | 29.2% | 1.5% | -$23.1M | $7.4M | | Dec. 31, 2025 | $777.7M | 30.8% | 11.3% | $1.1M | $398.5M | | March 31, 2026 | $751.1M | 30.0% | 9.6% | $70.7M | $47.5M | | June 30, 2026 | $1.07B | 33.4% | 17.1% | $196.3M | $174.8M |
Two things changed over the five quarters. First, operating margin (the share of sales left after running costs) rose from 1.5% to 17.1%. Higher volume spread fixed costs over more sales. Second, free cash flow turned from deeply negative to positive. It was uneven, though. The quarter ended Dec. 31, 2025 produced $398.5M, and the quarter ended March 31, 2026 produced only $47.5M. Cash flow in a business that sells large systems can swing with the timing of customer payments, so one quarter should not be read as a trend. Gross margin of 33.4% is still below the 36.1% of a year earlier, so profit growth came mostly from volume and lower operating costs per dollar of sales, not from richer pricing on each unit.
Why it matters for investors
The balance sheet as of June 30, 2026 held cash and short-term investments of $2.72B against total debt of $2.81B, leaving net debt of $144.8M. Shareholders' equity was $1.61B. The company's Altman Z score of 11.01 points to low bankruptcy risk by that model, while its Piotroski score of 5 on a 0-9 scale (a check of profit, leverage and efficiency trends) is middling.
Valuation is the main debate. On trailing 12-month figures, the stock trades at a price-to-earnings ratio of 264.79, a price-to-sales ratio of 20.94, an EV/EBITDA of 186.77 and a price-to-free-cash-flow of 103.77. Trailing net margin is 7.9%. Those multiples price in years of continued growth. The consensus for the period ending March 30, 2029 is revenue of $3.13B (range $2.89B to $3.48B) and EPS of 2.06 from 4 analysts. For the period ending June 30, 2029 it is revenue of $3.48B and EPS of 2.45 from 6 analysts. The FMP discounted cash flow model, which values a company on projected future cash, shows -16.85 per share. That output is a mechanical estimate, and it shows how sensitive such models are to assumptions about distant growth.
Peers look very different. Ballard Power (BLDP, market cap $473.3M) has a net margin of -72.7%. FuelCell Energy (FCEL, $1.04B) is at -113.9%. Plug Power (PLUG, $1.93B) is at -220.6%. All three have negative P/E ratios. Bloom, at a market cap of $65.18B, is profitable and far larger than these fuel cell peers. That is why it is often grouped with AI power names instead of hydrogen names, and why its valuation is not comparable with theirs.
Analysts are split on price. Among rating firms, 17 rate the stock positively, 12 neutral and 3 negatively, and the consensus label is positive. Price targets average $293.50 with a median of $303.00, spanning $176.00 to $351.00. The current price of $221.31 sits below the average and above the low. Recent actions have been mostly reiterations: Truist (Oct. 16, 2026) stayed neutral, Baird (Oct. 15) stayed positive, and UBS and Bernstein (both Oct. 7) kept their ratings.
Our own score. Stock Expert AI's MoonshotScore V2 is 71.6, rated Strong. Compared with its sector, the pillars are growth 86, momentum 88, safety 81, quality 62 and valuation 14. The score is high because of growth and price momentum, and the valuation pillar is the weak spot, consistent with the multiples above.
What could go wrong
- Expectations are high. The stock fell 6.34% on Oct. 16, 2026 and sits well below its 52-week high of $351.28. A report that merely meets estimates may not satisfy investors who paid for strong growth.
- Lumpy orders. Most revenue growth came from product sales, which depend on a small number of large customers and on delivery timing. The recurring electricity line shrank.
- Margins. Gross margin of 33.4% is below the year-ago 36.1%.
- Insider selling. Form 4 filings in the last 90 days show 0 open-market purchases and 11 sales. Executives often sell under pre-set plans, so this is a data point, not a verdict.
- Debt. Debt-to-equity is 1.74, and the company's debt is nearly equal to its cash.
What to watch next
Bloom reports on Oct. 22, 2026. Analysts expect EPS of 0.688 and revenue of $1.06B, which is slightly below the last quarter's $1.07B. Look at four things: whether product revenue holds, whether gross margin recovers toward the year-ago level, whether free cash flow stays positive, and what management says about customer demand and manufacturing capacity. The recent company releases covered community sponsorships and contained no financial news, so the earnings report is the next real update.
Frequently asked questions
Q: What does Bloom Energy do?
According to the company, it makes solid-oxide fuel cell systems that produce electricity on site from natural gas or hydrogen. Customers include data centers and other businesses that want power without relying only on the grid.
Q: Why did Bloom Energy's revenue grow so much?
Revenue for the quarter ended June 30, 2026 was $1.07B versus $401.2M a year earlier. Product sales drove most of it, at $935.4M versus $296.6M. The theme behind it is demand for fast, on-site power for AI computing.
Q: Is Bloom Energy stock expensive?
By trailing measures it is high: a P/E of 264.79 and a price-to-sales ratio of 20.94. Our MoonshotScore valuation pillar is 14, which is weak versus the sector. Whether that is justified depends on whether the 2029 consensus of $3.13B to $3.48B in quarterly revenue is reached. This article is not investment advice.
This is educational content, not investment advice. Past performance does not guarantee future results.