BE

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Tap here. - Management attributes the record quarter to a fundamental architectural shift in the power industry, where fuel-cell-based on-site power is transitioning from a niche solution to a standard for large-scale digital infrastructure. - The company is capitalizing on the grid's inability to meet the concentrated power demands of hyperscalers, positioning its redundant, fault-tolerant architecture as a faster and more reliable alternative to traditional utility upgrades. - Performance was driven by significant operational leverage, with revenue growing 138% year-over-year while operating expenses only increased 26%, demonstrating the scalability of the current financial model. - Strategic positioning has expanded beyond data centers to include military installations and critical civilian infrastructure, driven by a growing market need for power security and resiliency against physical or cyber threats. - Management emphasizes that their non-combustion technology provides a unique competitive advantage in jurisdictions with strict local emission standards, such as Virginia, by offering a cleaner alternative to gas-fired generation. - The company is evolving its relationship with utilities, positioning Bloom Energy servers as distribution assets that help utilities fulfill growth demand without losing customers to behind-the-meter alternatives. - Full-year revenue guidance was upwardly revised to $4.4 billion to $4.6 billion, representing over 120% growth at the midpoint, supported by high visibility into fourth-quarter delivery timing and a probability-weighted pipeline. - Management expects to continue investing in production capacity and working capital to support future growth, utilizing a 'self-funding' model where operating income covers capital expenditures and innovation R&D. - The company is preparing for a multi-gigawatt future by expanding its real estate footprint in Fremont, intending to scale capacity incrementally to match customer demand without creating bottlenecks. - Strategic focus is shifting toward international markets and front-of-the-meter utility arrangements, with management expecting significant wins as global grid infrastructure struggles to keep pace with electrification. - Future growth is expected to be bolstered by the adoption of 800V DC architectures in data centers and the commercialization of carbon capture and sequestration (CCS) technologies. - Product gross margins reached 38.4% despite the costs associated with ramping new production lines and expediting deliveries to meet aggressive customer timelines. - The company noted that cash collection often follows revenue recognition due to contract milestones, leading to temporary increases in contract assets and receivables during periods of rapid growth. - Management highlighted the inclusion in the S&P 500 as a validation of the company's scale and profitability, which is expected to attract a broader base of institutional shareholders. - AEP's 700 MW project for Google was cited as a landmark validation of Bloom's carbon capture viability at scale, which management views as a potential trillion-dollar market opportunity. - Management stated the expansion is necessary to prepare for demand beyond the 5-gigawatt milestone, driven by global electricity needs and the shift toward on-site power. - The expansion will be managed like an 'analog dial' rather than a step function to ensure capacity tracks closely with demand without overextending capital. 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Tap here. - Simon Edwards noted that while scaling involves near-term startup and expedited delivery costs, pricing remains strong and cost-reduction programs are in place. - Long-term margin benefits are expected to flow from increased line utilization and maturing manufacturing processes as the business continues to scale. - KR Sridhar explained that utilities are increasingly viewing Bloom servers as distribution assets that can be rate-based to serve customers faster than building central plants. - This strategy helps utilities retain their rate base and avoid passing higher costs to other ratepayers when large customers seek on-site power. - Management views 800V DC as an inevitable shift for data centers that will save customers billions in conversion costs, with Bloom uniquely positioned to provide direct DC power. - Carbon capture monetization will be flexible, ranging from equipment sales to partnerships where Bloom shares in carbon credit proceeds or revenue streams. - Management emphasized that Bloom will not be the bottleneck for customers, noting the ability to deliver power blocks in as little as two months after approvals. - The speed of deployment is a critical value proposition, as every quarter of delay for a gigawatt data center can represent billions in missed revenue for the customer.

On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Bloom Energy (NYSE:BE) raised its full-year revenue outlook to between $4.4 billion and $4.6 billion, up from $3.9 billion to $4.2 billion. Surging electricity demand from artificial intelligence data centers is pushing commercial customers toward on-site fuel cell generation. Three takeaways from management explain why this shift matters for long-term investors. Management upgraded full-year revenue guidance for the third time this year, projecting 2026 growth of about 122% at the midpoint versus last year. It's seeing customer demand for rapidly deployable on-site power drive backlog growth faster than current shipments can keep up with. Quarterly revenue reached $1.24 billion while operating expenses grew at a much slower pace. That discipline expanded operating margins and generated $286 million in non-GAAP operating income, a measure of profit from core business operations. Operating margin for the quarter expanded to 23.1% from 8.9% a year ago. As revenue grew 138% while operating expenses grew only 26%. -- Simon Edwards, Chief Financial Officer An American Electric Power contract for 700 megawatts of server capacity showcases how utilities are using on-site generation at the front of the meter, or directly on distribution networks. Integrating carbon capture and sequestration (CCS), which traps emissions before they escape, opens a trillion-dollar market opportunity. AEP revealed that 700 MW of carbon capture and sequestration-enabled Bloom Energy servers will be used to provide [Alphabet's] Google with near net zero electricity in a first of its kind project. -- K. R. Sridhar, Founder, Chairman, and Chief Executive Officer Demand for on-site electricity is surging as data centers outgrow traditional grid infrastructure. Bloom is expanding manufacturing capacity while maintaining pricing discipline to fund its growth. As global power requirements rise, on-site fuel cells offer faster deployment than utility grids. That structural advantage positions Bloom Energy to lead a transformation in energy delivery. Fuel-cell-based on-site power will become a preferred choice and complement to the grid for power delivery across all industries and geographies. -- K. R. Sridhar, Founder, Chairman, and Chief Executive Officer Before you buy stock in Bloom Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bloom Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,303,935!* Now, it's worth noting Stock Advisor's total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 23, 2026. The Motley Fool has positions in and recommends Alphabet and Bloom Energy. The Motley Fool has a disclosure policy. Bloom Energy Q3 Earnings: 3 Key Takeaways for Long-Term Investors was originally published by The Motley Fool

Image source: The Motley Fool. Oct. 22, 2026 - Investor Relations - Michael Tierney - Founder, Chairman, and Chief Executive Officer - K. R. Sridhar - Chief Financial Officer - Simon Edwards Operator: Hello, everyone. Thank you for joining us. And welcome to Bloom Energy third quarter 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the call over to Michael Tierney. Please go ahead. Michael Tierney: Thank you, and good afternoon, everybody. Thank you for joining us for Bloom Energy's third quarter 26 earnings call. To supplement this conference call, we furnished our third quarter 2026 earnings press release and supplemental financial information with the SEC on Form 8-K and have posted these materials we will reference throughout this call to our Investor Relations website. During this conference call, both in our prepared remarks and in answers to your questions, we may make forward-looking statements that represent our expectations regarding future events and our future financial performance. These include statements about the company's business results, products, markets, customers, strategy, financial position, liquidity, and full year outlook for 2026. These statements are predictions based upon our expectations, estimates, and assumptions. However, as these statements deal with future events, they are subject to numerous known and unknown risks and uncertainties, as discussed in detail in our documents filed with the SEC including our most recently filed Forms 10-K and 10-Q. We assume no obligation to revise any forward-looking statements made on today's call. During this call and in our third quarter 2026 earnings press release and supplemental financial information, we refer to GAAP and non-GAAP financial measures. The non GAAP financial measures are not prepared in accordance with US generally accepted accounting principles and are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between the GAAP and non-GAAP financial measures is included in these materials, which are available on our Investor Relations website. Joining me on today's call are K. R. Sridhar, founder, chairman, and chief executive officer and Simon Edwards, our Chief Financial Officer. KR will begin with an overview of our progress, and then Simon will review financial highlights for the quarter. After our prepared remarks, we will have time to take your questions. I will now turn the call over to KR. K. R. Sridhar: Good day, everyone. At the end of September, as we were closing out another record quarter, I celebrated Bloom's 25th anniversary and our inclusion in the S and P 500 by ringing the opening bell at the New York Stock Exchange surrounded by many of our manufacturing team members. Our mission has not changed in a quarter of a century. Providing clean, reliable, access and affordable power for everyone. After all, in our modern age, electric power is essential to economic and physical well-being and to human dignity and happiness. The last time Bloom rang the bell was 8 years ago for our IPO. Then we were seen by the market as a niche provider of electricity. Now we are seen as a standard for on-site power. Critical to powering the AI revolution. I am confident that 8 years from now, we will look back and understand that Bloom led the first major architectural change in the history of the 150-year-old power industry. Fuel cell based on-site power will become a preferred choice and complement to the grid for power delivery. Across all industries and geographies. Countries with insufficient grid infrastructure will leapfrog to distributed on-site power. Just as developing countries bypass landlines and directly adopted cell phones. Hyperscalers have been the first to embrace on-site power. They need power rapidly and at large scale. Some individual data centers use more power than some small states. But the grid was designed to provide power that was evenly distributed across a very large number of customers spread over large areas. It is overwhelmed by the concentrated and huge power needs of data centers. Mandated cost plus rate designs and utility franchise laws have exacerbated this problem. By design, they do not incentivize regulated utilities to innovate or create efficiency. Flat electricity demand over 2 decades prior to AI led to lack of investment and much needed upgrades. The speed and scale of the AI revolution made the grid's shortcomings obvious. Hyperscalers scramble to find any available grid power, and soon realize that bringing their own on-site power was the path forward. Bloom quickly emerged as a standard solution. It is community friendly and more secure. The redundant, fault tolerant, and distributed architecture offers higher availability, it is always on. And resilient to natural disasters, cyber, and physical attacks. Yet eliminates the need for backup generators. And we win on total cost of ownership safety, access, speed, and sustainability. With a clear path to net zero emissions. Now the same forces that pushed hyperscalers are driving broad swaths of the electricity market towards on-site power. 1-quarter of all commercial and industrial facilities in the U.S. expect to be fully powered on-site by 2030. According to our recent power survey of over 200 C&I businesses across 15 unique segments. 35% of facilities expect to be fully powered on-site by 2035. Why? Going forward, electrification and digitization. Population growth, and automation will mean that factories and businesses will consume large amounts of power and very high reliability. In fact, the IEA projects global electricity demand to increase 40% by 2035. The grid is ill suited to either rapidly scale or power concentrated loads with high reliability. Just as it is struggling to power AI factories. Bloom will become the solution of choice for this large segment of the market. We will be a leader in enabling the electricity market to capture the new global demand and grow annually to about 6 trillion US dollars. In the next decade, up from about $3 trillion today. So after 25 years, we are just getting started. Now our growth is accelerating, There is better understanding for the value we provide. And widespread recognition of our brand. We started our 26 Q1 earnings call expecting a year-on-year revenue growth. of 60%. Today, we are upward revising that guidance and projecting over 120% year-on-year revenue growth at the midpoint. Our customer pipeline continues to grow and our backlog is continuing to expand faster than our revenue. With increasing diversity in customers, verticals, and geographies. We are delivering for our customers. Just 15 months ago, we announced our first project with Oracle and delivered power to their Utah site in less than 2 months. We are achieving the same thing with Nebius in New Jersey. We were able to get planning board approvals for our fuel cells within 3 months of signing the contract. 2 months after these approvals, we have the first block of power ready for our customer use. Our business in this important segment is robust and growing rapidly. Communities and policymakers recognize that we are clean and quiet. We are the best option for firm on-site power. For example, in a 2026 energy plan,, Virginia governor Abby Spanberger explicitly called out noncombustion fuel cells. And said, I quote, compared to the conventional gas fired generation, they produce substantially lower local emissions. Reducing health impacts in nearby communities. This is significant. Because this is not just any jurisdiction. Virginia, is the home to most of the data centers in the world. It is also ground zero for the challenging relationship between data centers and communities. We applaud Governor Spanberger for recognizing the values that are noncombustant solutions bring to the table at this critical moment for both the data center industry and the communities they operate in. Here are 5 commercial wins from the quarter. That exemplify how we are expanding our total addressable market. First, the US Army has conditionally awarded our partner, Indelible, long term leases to build and operate commercial power generation using Bloom Energy servers at US Army installations. The purpose is to enhance power security using our distributed and on-site architecture. We view securely powering military and civilian critical infrastructure such as bases, water treatment plants, hospitals, and airports as a growth opportunity. Second, AEP revealed that 700 MW of carbon capture and sequestration enabled Bloom Energy servers will be used to provide Google with near net zero electricity in a first of its kind project. Unlike turbines and engines, Bloom's technology makes CCS viable at scale. We see CCS as critical to meeting decarbonization goals and as a potential trillion dollar market opportunity. For Bloom. Third, we have talked to you about our expanding footprint in the Rocky Mountain, Midwest, and Great Lakes regions. Our value proposition has become competitive even in the American states with the lowest cost of power. Such as Texas. Where we are shipping our first units this quarter. Fourth, we consider the utility relationships we are building as a channel to powering America forward through the power shortage. Many utilities are increasingly recognizing that our clean baseload generation asset, a Bloom Energy server, when deployed at their distribution networks is a faster and more economical way to fulfill power growth demand of their customers and enhance the distribution network stability and reliability. I expect to see significant wins in our utility related business. Often called front of the meter arrangements. Finally, fifth, we are witnessing strong interest in deploying Bloom systems to meet rapidly growing power demand in many international markets. We are engaged with potential local partners in a few of these markets. We look forward to updating you soon on some wins. To summarize, Bloom is a solution of choice for community friendly on-site power that is rapidly deployed clean, reliable, and competitive. Our on-site solution is deployed to power gigawatts scale intelligence factories. Megawatt scale inference data centers, factories, commercial businesses, and mission critical infrastructure as hospitals, telecom hubs, and essential services. The demand for Bloom's on-site power is growing both domestically and internationally, and we are establishing strong partnerships. This growth potential in combination with future growth opportunities such as CCS, and 800V DC, points to Bloom capturing a large share of the growing market. This conviction provides us with clarity on what our future looks like. It will require us to scale and execute to take advantage of this once in a century opportunity. I have great confidence in my team and know that they are ready to take on this challenge. With that, let me turn it over to you, Simon, to walk us through the numbers. Simon Edwards: Thank you, KR, and good afternoon, everyone. As a reminder, I will focus on non-GAAP adjusted metrics. Reconciliations to GAAP are in our press release, supplemental materials. The third quarter was another record quarter for Bloom. Revenue of $1.24 billion was up 138% year-over-year. And operating income of $286 million grew faster still. up over 500% year-over-year. On the strength of the quarter, we are raising our full year outlook for revenue, operating income and EPS. For the third time this year. Before turning to the details, it is worth stepping back and looking at what we have accomplished so far this year. Year to date revenue of $3.05 billion is already 50% above what we generated in all of 2025. Operating income in this quarter alone exceeded operating income for all of last year. That is the operating leverage embedded in our model now showing up in the results. Operating margin for the quarter expanded to 23.1% from 8.9% a year ago. As revenue grew 138% while operating expenses grew only 26%. As KR said, taking advantage of this once in a century opportunity will require us to both scale and execute. And we are continuing to invest in our innovation and engineering road map. Growth initiatives, and the infrastructure needed to support our scale. Year to date capital expenditures $231 million, as we invest in capacity to support future growth and fund that investment from operations. Despite investing 4x what we spent in all of 2025, our cash balance remains roughly in line with where we started this year. Our margin structure gives us the ability to invest in scaling the business while preserving the strength of our balance sheet. That is the financial model we deliberately designed and put into operation. And it is performing to plan. Now turning to the details for the quarter. As I mentioned earlier, revenue for the quarter was $1.24 billion up 138% year-over-year. and 16% sequentially. Product revenue was $1.07 billion up 179% year-over-year and 15% sequentially. crossing $1 billion in a quarter for the first time and representing 87% of total revenue. Product revenue is recognized when controlled transfers to the customer. So it is the direct measure of systems delivered and accepted in the quarter. Service revenue was $67.6 million up 15% year-over-year and roughly flat sequentially. Installation revenue was $84.9 million up 29% year-over-year and 66% sequentially. Installation scope varies across customers and projects, with revenue recognized over time as the work progresses. As a result, installation and product revenue do not move together quarter to quarter. And installation revenue will fluctuate with the timing and mix of customer projects. Turning to margins. Products gross margin was 38.4%, up 250 basis points year-over-year. And 120 basis points sequentially. In a quarter when we were both ramping new production lines and expediting deliveries. That is a direct read on both our pricing strength and the cost reductions we are driving through the product. Services margin was 21.4%, up 700 basis points year-over-year. And marking our second consecutive quarter above 20%. Total gross margin was 34.5%, up 412 basis points year-over-year with expansion in both product and services partly offset by the timing of installation revenue in the mix. Given these quarter to quarter mix movements, this is why we manage and guide gross margin on a full year basis. Operating expenses for the quarter were $141 million reflecting continued investment in our engineering road map growth initiatives, and infrastructure. Operating income was $286 million, up over 500% year-over-year and 19% sequentially. And operating margin was 23.1%, up 60 basis points sequentially. Adjusted EBITDA was $299 million representing 24% of revenue and an expansion of 1.29 thousand basis points year-over-year. Non-GAAP diluted EPS was $0.94 compared with $0.15 a year ago. GAAP diluted EPS was $0.78 compared to a loss of $0.10 a year ago. Turning to cash. Cash flow from operations in the quarter was a use of $27 million Net income was more than offset by an increase in working capital, driven primarily by inventory, contract assets and receivables. As we supported the significant growth in the business and built inventory for future deliveries. As I noted earlier, product revenue is recognized when control transfers to the customer. Billing follows contract milestones and can occur in a different quarter. As a result, cash collection can follow revenue recognition. With the difference reflected in contract assets and receivables until billed and collected. The timing of large deliveries and related cash collections will vary from quarter to quarter. And those differences even out over time. We expect to continue investing in working capital to support future growth and scale alongside our customers. Capital expenditures $153 million in the quarter, and $231 million year to date. Driven primarily by investments in machinery and production capacity to support expansion within our existing Fremont and Newark facilities. Adding capacity in these increments means our capital spending tracks demand. As we see it. Rather than running ahead of it. Free cash flow was a use of $181 million in the quarter. And positive $42 million year to date. And we ended the quarter with $2.5 billion of cash. Finally, during the quarter, we were added to the S&P 500. We view this inclusion as recognition of the scale profitability, and consistency we have built into the business. And we welcome the broader base of shareholders it brings. Turning to guidance. We are raising our full year revenue outlook to $4.4 billion to $4.6 billion. That represents year-over-year growth of approximately 122% at the midpoint. The increase reflects our third quarter performance and greater visibility into fourth quarter customer delivery timing. Our quarterly cadence is driven by customer readiness, and delivery timing, which is why we manage the business and provide guidance on a full year basis. As with each of our increases this year, our outlook is built on 2 layers. The first is backlog, which we assess customer by customer against site readiness and conversion timing. The second is a probability weighted view of our pipeline, customers who need power within the quarter. With 1 quarter remaining, the timing of a small number of deliveries around year end will determine where in the range we land. We are maintaining our most recent non-GAAP gross margin outlook of approximately 34%. This is up from 30% in 2025 and from our original outlook of approximately 32% at the beginning of the year. This view reflects our expected fourth quarter revenue mix and business line margins. We are also raising our non-GAAP operating income outlook to $960 million to $1.03 billion At the midpoint, that is a 22% operating margin. Compared with 14% at the midpoint of our February outlook. Our non-GAAP diluted EPS outlook is now $3.10 to $3.40 To conclude, we are delivering record results. Raising our outlook, and making the investments required to capture the significant opportunity in front of us. We are doing that while expanding margins and preserving the strength of our balance sheet. With that, operator, we will now take questions. Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please limit yourself to 1 question and 1 follow-up. We ask that you pick up your handset when asking a question to allow for optimum sound quality. You are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question from the line of Mark Strouse with JPMorgan. Your line is now open. Please go ahead. Mark Strouse: Yes. Good afternoon. Thanks very much for taking our questions. I was curious if you can just talk about recent decision to expand your real estate footprint in Fremont. You spend quite a bit of time on the call talking about, kind of multiple paths of TAM expansion. I am just curious, though. Why make that decision now? And since you have talked about your current manufacturing footprint supporting over 5 gigs of annual output. Should we now assume that is over 10 gigs once that facility is up and running? K. R. Sridhar: Mark, thank you for that question. Look. It is very clear to us. Right? There are some things in this uncertain world that you can be absolutely certain about. The use of electricity, the need for electricity, the demand for electricity is just going to skyrocket not just because of AI, but because of so many market segments that require electricity in this digital age. It is going to happen not just within the shores of the U.S. We are beginning to see that same trend play out in Asia, in Europe, in other parts of the world. We see electricity demand for on-site kind of power as opposed to the grid power coming from various other pools, other than just data centers being told to bring their own power. This is coming from resiliency. it is coming from security. You are looking at critical installations during various different scenarios in the world. Where their need for reliable secure power that is on-site is becoming important. When we put all this together, it is very obvious to us. It was always obvious to us. But from a timing perspective, it is very obvious to us that the 5-gigawatt milestone which was just a milestone, in a long journey, we can clearly see that coming, and we need to get prepared for what is after that. And that is what you are seeing out here. And we will never increase our capacity in a step function. We will do that as the need comes along in an analog dial, if you want to think of it that way, to keep up. And we will never go past our headlights. But we will never be slow enough that we are the bottleneck to our customer getting the power. It is through this process that we do this. We were not going to provide a timeline of when that is gonna happen. It is-- it-- But we have strong conviction and there is enough confidence we are getting from the marketplace, to tell us that we should start preparing for past the milestone of the 5-gigawatts. that is why we are doing this. Hopefully, that answers your question. Mark Strouse: That was great. Thank you. And then just a quick follow-up for Simon. On the point of gross margin outlook for the year staying the same, despite the higher revenue, I think you touched on that is at least partially due to mix. Any other color you can give us there? And then I would, obviously, know you are not guiding to 2027 yet, but just kind of directionally as your revenue ramps, should we continue to expect further upside in gross margin? Thank you. Simon Edwards: Yeah. Hi, Mark. So, look, at first, I take a step back and just look at how far we have already come. Right? Total gross margin was 28.7% in 2024, 30.3% in 2025, and now 34.5% in the third quarter. So I think we have this demonstrated track record of expanding margins as the business has been scaling. Within that, I feel really good about what we are seeing in product margins. So mentioned on the prepared remarks, pricing remains strong. And the cost reductions we have been driving are showing up in the numbers. And so I think, though, at the same time, we are balancing this margin expansion with also capturing the market opportunity in front of us. As KR mentioned, we are ramping new production lines. We are expediting deliveries to meet these customer time lines. And I think that carries some near term cost. And then we have also got a number of engineering, sourcing, manufacturing cost reduction programs. And those will take some time to flow through to COGS. So I would think about it. You asked about next year. We think about it from the lens of the long game. We know that scaling comes with startup costs, and I think we have reflected that in a measured gross margin outlook. But as these projects move into production, as we continue to mature our lines and utilization increases, I think we will get more benefit from scale. And I just say, look. In my first 6 months here, I have been really impressed with what I have seen both operationally from the team and then how that progress is showing up in the numbers. Thank you. Operator: Your next question is from the line of Nick Amicucci with Evercore ISI. Your line is now open. Please go ahead. Nicholas Amicucci: Hey, guys. Thanks so much. Just wanted to. Simon, if I could just kind of drill into just the free cash flow profile. Obviously, a use of $27 million in the quarter just given the margin expansion and the like, just wanted to drill into that, any kind of puts and takes that we could kind of or 1 offs that we can kind of frame up. Simon Edwards: Yeah. Hi, Nick. So, look, I think the first point I would make is we already view this as a self funding business. So when you think about the operating performance of the business, that is what is funding the investments required to grow, So I do want to highlight that this really matters for us because it is going to reduce our dependence on external capital, really lowers our execution risk, And then I think it gives us the flexibility that KR talked about to invest against that customer demand. So I would say that all of that in the context of really looking at cash generation over the full year rather than extrapolating from any 1 quarter. And I would say that we really do believe that this business will be a free cash flow positive business as we think about continuing to be able to fund our own growth. I then kind of come back to the first part of your question, this quarter, we used cash from operations. But that is not the beginning of the trend. We generated positive CFOA year to date. Even as we have increased operating investments in people and capabilities then as I mentioned in my prepared remarks, funded the working capital to support some of these customer deployments. So I think the fact that we have been able to support the investments from an operating standpoint and then also fund our CapEx year to date just speaks to the capital efficiency of this business. And then if I tie that all back to the returns that we are able to generate from our CapEx investments, we feel really good about the trajectory we are on. Nicholas Amicucci: Great. Thanks. And then, if I could, just kind of drill in on what you had said you had mentioned kind of just the increased demand and kind of relationships that you guys have had on the utility side Obviously, kind of thinking of it more. Thinking of you guys more of as a behind the meter solution now. It seems more. A little bit more complementary from that perspective. If we think about just kind of what is been put out there already, I mean, we have seen IRPs in different jurisdictions that have now included fuel cells. If we could just kind of I do not know, kind of put a finer point on the opportunity and TAM that you guys are seeing within, I guess, just broadly as you as you think about it? And specifically within kind of that regulated utility opportunity and the opportunity there. K. R. Sridhar: Nick, that is a wonderful question. So let's first talk about as seen by the customer. Okay? And here, I am gonna say, let us think of 2 customers. 1 is the rate payer who is the ultimate customer. And the other customer for us is the utility that serves that rate payer. Right? If you look at optimizing for the 2 of them, the more they start seeing us as a distribution asset. Through which they can reduce their total cost and still keep serving their customer. The better it is for the rate payer, the better it is for them to go to their policymakers and ask them to rate base their procurement of Bloom Energy servers to put into the transmission and distribution base as both a transmission asset and a distribution asset. What does that do for them? It allows them to put us in front of the meter, and distribute that load as it comes. They do not need to wait for a customer to ask for an order. They can procure like they do in their IRPs right now. Based on the plans and based on the demands without any specific customer in mind. Why should they do this as opposed to buying a central asset? The transmission distribution and the cost associated with it, and the bottlenecks associated with it and the timing associated with it, does not work for them. They are finding that out, so the customer has to go behind the meter. They lose their customer, They lose their rate base. If they lose their customer and they lose their rate base, then they have to increase the cost on the rest of the rate payers which is not what the state wants and which is not what the end customer wants. So we are a real asset to this industry at this point in time across the board. So you are gonna see this play out in multiple territories as soon as they begin understanding this And our team has been doing a very good job of educating the various abilities on the benefits of bringing on-site power as a complement to the grid. We have been saying why the grid is inadequate. The utilities are finally getting the leeway they need from their regulators to include to include these assets and so they are jumping on the opportunity. So we see this as a huge growth business for us going forward. Thank you. Operator: Your next question is from the line of David Arcaro with Morgan Stanley. Your line is now open. Please go ahead. David Arcaro: Hi. Thanks so much for taking our question. KR, you have some several future opportunities I guess, in carbon capture, in combined heat and power. And as the industry goes to 800V DC. I was wondering for those future initiatives, could you address where those stand in terms of commercial opportunities emerging and what the market adoption is that you are seeing in the near term? K. R. Sridhar: David, hi. So thanks for that question. Yes. Let me address that. Look. I cannot tell you how thrilled I am with the AEP announcement. Of the 700 MW of carbon capture providing near net zero electricity to a hyper scale customer. Google in this case is what they have announced. And what this is going to do is to provide timely on-site reliable, no air pollution, no water use, and net. Near net zero electricity. How much better can this get? Okay. And we have here is the key point that I think the investors on the call need to understand. Combustion technologies, do not offer a affordable and scalable pathway to carbon capture today. Bloom's technology in the commercial world is unique in that it can offer the concentrated carbon dioxide for carbon capture. This is the genius and the power of what Bloom does. It Bloom does. Is both good for the pocketbook. And it is environmentally friendly. So I believe the fastest way the world will decarbonize when it is ready is to use our technology with natural gas to produce abundant electricity that is reliable at the same time, planet friendly. And when the world is ready for this, I see this as a greater than a trillion dollar opportunity. that is how big I think it is. 800V DC is a no brainer. We have shown in a report that we put out that in the first 5 years of operations, a gigawatt data center will save over $5 billion. By adopting to 800V DC as opposed to the current archaic industrial age architecture of power delivery. 800V DC is anyway happening. We do not have to push the market to get there. But why use all the translations in and pay the additional $5 billion? I am extremely confident that we will see that adoption happen when the server racks the data will DC come out. We are in conversations with all the hyperscalers there is a lot of interest in this area. It will happen when the DC data centers are built They tend to DC as the standard. It is not if. It is how soon. They are in a better position to answer the timing question than I am. On heat capture, which is CHP, we absolutely believe that when you do on-site generation, throwing away that heat that can be cooling and reducing 20% of your power demand is, again, a no brainer. So this is an and to everything we do, whether you do it AC power to the data center, 800V DC power to the data center, with carbon capture, without carbon capture, it does not matter. This becomes an obvious choice. And here's what is interesting about CHP. Most industrial applications And we believe CNI's going to be a huge growth vector for us are going to require either heat in the form of steam or cooling. And they will utilize CHP. So I see that as a huge growth vector and a value creation for commercial and industrial customers to use us. So you know, the beauty is the same platform. So that is why we have been telling everybody Bloom's a platform and not a product. We are able to give any and all of the options. In our platform to the customer as they need it. Thank you. Operator: Your next question is from line of Sorry. Ravi, may I have a follow on? Your next question is from the line of Christopher Dendrinos with RBC Capital Markets. Your line is now open. Please go ahead. Christopher Dendrinos: Yes. Great. Thanks for taking the questions here. Congratulations on a strong quarter. You know, I wanted to ask about time to power and, you know, I think going back, you mentioned it during your prepared remarks, the ability to deliver to Oracle in less than 2 months a year ago. You know, as demand's ramping and you guys are scaling, is the time to power still sub-90 days, or is that extended just given the strength of the backlog here? And then maybe just put a finer point on how quickly you were able to deliver power to the Nebius site. I think you mentioned, you know, the first block is about to power on, but what does that translate to in terms of, megawatts? Thanks. K. R. Sridhar: So thank you, Christopher. that is a very good question. Look. We have our servers ready for the 300 MW. We will not be the bottleneck. So we are ready. We will go. But I think you are familiar with how data centers are stood up They are not stood up from 0 to 300 in a day. They do it block by block. And their first block is almost getting ready, and we are already there for the first block. We will be there for every other block that they build. Before they are ready so we do not become their bottleneck. So the rest of the timing on the data centers is up to the customer to speak. And we will not comment on that. But your larger question. Look. Just this morning, I think, Berlin time or maybe it was yesterday. I cannot remember at the Berlin GTC. The CEO of NVIDIA said the following. Every quarter delay in a gigawatt data center translates to $10 billion of missed revenue. Okay? So every 100-megawatt data center a quarter delay would be $1 billion lost revenue. That overwhelms every other value proposition that you will have on the power block. And there is no cleaner technology available today for on-site power. To get an air permit There is no faster technology available to power the customer on. And there is no complete future proofing and all the attributes we talked about in the previous question. About the additional value we can supply. So that is the reason we are bullish about this particular sector and what it means for us. Thank you. Christopher Dendrinos: Alright. Thank you. And maybe just as a follow-up and going back to Mark's questions on the expanding footprint, is there an opportunity to add increased automation here? And just how are you all thinking about, I guess, the manufacturing opportunity and what kind of cost savings that might drive? Thanks. K. R. Sridhar: Look. I think when people have taken a tour, of our factory, Our general manager, Brad Fields, who is amazing, says the following line that people remember. He just reminds them that years ago when we did 100 MW a year of stack production, we had about 600 employees. Working 27. Last. You know, now when we are at a gigawatt production, we will have 600 employees per year in that production line. That is 10x. And when we get to 5 gigawatts, we will still have 600 employees working in that line. And that is Bloom is a place where cost reduction is in our DNA. Creating efficiencies in our DNA, and we continue to innovate. So, absolutely. And we are not only a beneficiary of AI, in that they are our customer. We are a beneficiary of AI in so many different places, including automation. Thank you. Operator: Thank you. Next question is from the line of Manav Gupta with UBS. Your line is now open. Please go ahead. Manav Gupta: KR, I want to go back to the last call. You said something incredibly insightful where you said the total cost of. The LCOE is an absurd construct for on-site power. And data centers focus on the total cost. Can you help us a little bit to understand what the data centers are seeing in terms of what is the LCOE versus actually the power which is delivered to them is actually pricing in much higher and your solution actually is more effective. And then quickly on that 15, 16 September report that you highlighted, that is a very good report because it talks about all the money you save by switching to your solution. And I think you had said that, a 1 gigawatt facility can save up to 9% by switching to your solution. And the last part of that question, I promise, is we understand your solution has lower NOx and SOx emissions. But we also think there is a water conservation here. Your solution uses less water than your competitors, and that could be a major advantage when compete in this business. So if you could highlight some of if you answer some parts of all that question. Thank you. K. R. Sridhar: Okay, Manav. Thank you. That there are many questions. I will try to remember as many and answer. Let me start with the water question. Right? Look. We had when we had made-- if you just look at for every gigawatt, the amount of water consumption on the power plant. If you use a combustion technology. Versus us. It is. We are not even in the rounding error of the second decimal. Okay? So if you have a gigawatt, worth of data center, your annual lifetime usage of water is enormous when you are operating with a CCGT. For example, it would be somewhere in the neighborhood of 25 thousand gallons. Of water is what will get consumed if it is a wet cold CCGT over the life of that 1 gigawatt data center. that is a lot of water. Compared to that, 25 thousand we are 1.4 million. So it is not even a drop in the ocean. From a water usage perspective. Okay? that is the way to think about water. Now, you are asking about the cost advantage compared to grid power. Look. From the grid power, the power all the way going to a rack, From it going from less than the 3 9s. 99.9%, Not clean from a voltage and power perspective. I am not talking about the environmental aspects. The cleanliness of the electric power. Which is what a UPS does. And then the reliability. Then you add to that the conversion to the voltage and the direct current that you need. All that is cost associated from grid power to rack power. But then within the rack, because the grid delivered technology cannot cycle up and down or a turbine cannot cycle up and down, there is inefficiencies created inside the rack And they simply burn their electricity so as not to burn out the turbines on the. Or the engines or the batteries on the other side. You do not need to do that with the fuel cell. So the real cost for a data center is electricity. Total electricity cost to the amount of tokens you actually deliver on the other side. So it is the token cost of electricity. From LCOE, it goes to delivered grid power. From delivered grid power, it goes to rack power cost. From rack power cost, it goes to token power cost. You put all this together, we are the overwhelming cost leader. Lowest cost leader. If you put that total cost. That is the understanding. People are beginning to understand. And I hopefully answered most of your questions, Manav. We will take the next 1. Thank you. Manav Gupta: Thank you so much, sir. Thank you. Operator: Your next question is from the line of Ben Kallo with Baird. Can we ask all remaining analysts to keep to 1 question only in the interest of time? Ben Kallo: Hi. Thank you. I have 2 questions very quickly. Number 1, just going back to Mark and the expansion. You guys have talked about expanding, I think, 250 MW to 300 MW per quarter. I am just trying to think about how we should think about that as you approach the 5-gigawatts going into next year. And any kind of supply constraints that we should think about? And then my second question is, the-- Not in my backyard. I-- you know, we have seen the headlines that maybe some developers are moving internationally. And I am wondering, you know, how we should expect, you guys capitalize if that is true, and if there is the same type of benefits that you guys have, whether it is water, noise, or SOX and NOX emissions and thank you, guys. K. R. Sridhar: Thank you, Ben. So on the first question, let me be very clear. We have not given any numbers on quarter to quarter growth or year growth. What we have said is it is a dial, and we will dial it up or dial it down depending on where that need is. And based on everything I told you, I do not see us dialing down anytime soon. it is all dialing up. So it is how much we dial up will depend purely on the load. that is number 1. Number 2 on the question on international. Look. The part to remember is if the total delivered electricity for token becomes lot less, using the Bloom system. That means the amount of fuel you consume for the same number of tokens goes down. In most international markets where the cost of natural gas is so much higher than it is in The US, The advantage we bring even further enhances. And for all those reasons, yes, international markets are very attractive to us. And we are looking at international expansion. And like I said in my prepared remarks, expect some good news from us in the you know, near future. On that score. Thank you. Operator: Your next question is from the line of Ameet Thakkar with BMO Capital Markets. Your line is now open. Please go ahead. Ameet Thakkar: Congratulations on the quarter and the and the revised outlook. Just 1 quick 1 for me. I will stick to the rules. But you talked a lot about scale today. what is the largest single site kind of Bloom deployment operating in the U.S. today in terms of megawatts? And how do we think that about the relative size of the projects of the projects you kind of that you are about to deploy in, you know, Wyoming or New Jersey? K. R. Sridhar: We are in the 100 megawatt class already, and the Wyoming is also a 100 megawatt class approaching the gigawatt class because 700 MW. So, our smallest systems are 150 kilowatts, powering a small Home Depot, and our largest systems are approaching the gigawatt scale. And I will tell you, each of those customers is valuable to us, and we keep them all happy. Thank you. Thank you. Operator: Your next question is from the line of Maheep Mandloi from Mizuho. Your line is now open. Please go ahead. Maheep Mandloi: Hey, good evening. Thanks for the questions here. it is 1 small 1. On the backlog growth, I think in the prepared remarks, kind of talked backlog growing faster than revenues. And I am trying to understand like how to interpret that given revenue is up, like, roughly maybe 140% year over year or versus last year. So is that a framework to kind of think about the backlog growth over here this quarter? Thanks. K. R. Sridhar: Maheep, thanks for that question. Luckily, you do not have to wait very long given that it is Q4 in our in our, you know, beginning of the year. We will give you exact guidance. And I think over the last few quarters, we have shown to you that we have discipline and we give you numbers that we actually deliver on. So we will get you that number. But I would say, look, I think the growth is growth is solid. It is it is robust. So expect a solid growth. I. I am not going to directionally bracket it for you. Sorry. Maheep Mandloi: No worries. But to answer the question. Yeah. Operator: Your next question is from the line of Sunaina Occitan with Bernstein. Your line is now open. Please go ahead. Sunaina Ocalan: Hey, good afternoon. Thank you for taking my question and squeezing me in. Maybe I can ask in light of the AEP Google deal What is. Can you provide some color on maybe some of the other hyperscaler conversations you are having? Are you seeing CCS come up more as sort of a potential optionality for the hyperscale conversations. And maybe what it does to deliver power cost from your perspective I appreciate the CO2 stream being cleaner in your option. So just maybe more thoughts on that. K. R. Sridhar: Look. I think, very good question. I would say, yes. There is significant interest from all our hyperscale customers today asking about the optionality of carbon capture. We think it will become extremely important as we as we go forward. I think Almost all our customers would very soon, at a minimum, start buying systems from us that are carbon capture-ready. So when the ecosystem of wherever they are has a CO2 pipeline, that brings them to a sequestration well. They will be able to accommodate that. Right? Number 1. Number 2, think about a 10% to 15% cost as being a reasonable cost that most hyperscalers today would accept to be able to provide zero carbon power. So if you were able to provide that, that would be where they would go voluntarily absent the mandate. And Bloom will be able to deliver in that in that range, all in full cost. For carbon capture and sequestration, This is why I said we are the most affordable and technologically ready platform to do carbon capture and sequestration. Sunaina Ocalan: Thanks, K.R. Operator: Your next question is from the line of Colin Rusch. With Oppenheimer. Your line is now open. Please go ahead. Colin Rusch: Thanks so much, guys. it is a 2 part question. The first question is really about the contract asset growth and how you expect that to move into, you know, being able to bill for that and collect on that. And then the second question or second part of it is really around the strategy for monetizing carbon capture. I think we are believers that you guys can really make a meaningful impact on that and just if you will expect to monetize through server sales or if you will, likely bring to market a new solution that augments, some of the opportunities that you have with the service right now. Simon Edwards: Yeah. I will take the first part of that, Colin. So look, I would say to characterize the contract assets, what I do expect is they are gonna turn. Right? So while contract asset balance might grow, really important for us is that they are turning because reaching those billing milestones, and we are collecting cash. And so I think that an important nuance here that I want to highlight. And then, look, in general, I would expect us to continue to be able to manage working capital as we scale this business. But I think just making sure that we are turning both our receivables and contract assets is our primary focus. K. R. Sridhar: So, Colin, on how do we monetize carbon capture. Right? Again, this answer should not surprise you. This is how Bloom does everything in its business models and even in its product offerings. We will we will cater to the needs of the end customer. If the end customer happens to be a gas company, or an oil and gas company, with ability to carbon capture, They can bolt this on and they can monetize it. And, you know, using the credits as well as the revenue stream that comes from the customer. We can work with a partner to offer a complete solution end to end and figure out how to divide those proceeds. Or in some cases, the end customer may have the need for the carbon credit. And they take it themselves. And they pay us in return. On the implied electricity cost or the capital equipment plus a margin. We are agnostic to all of them. that is the beauty of our model. is that we create optionality for our customer And that is how we think about anything we do. At the end of the day, we are there to serve a customer. We are there to serve a need. There are multiple pathways to getting to that. So with that, let me actually. Since you are on top of the hour and passed it, let me just wrap up. And I wanna acknowledge while everything you heard from us is super positive, I wanna acknowledge the unsettling times we are living in right now. Like most of you, I see that there is a lot of uncertainty in the world. And there is volatility in the market. However, it is during times like this that we should remind ourselves of the compelling reasons for optimism about our collective future. At a personal level, I can tell you I feel really blessed to be at Bloom. it is an island of stability, certainty, and purpose for me. Let me explain to you. I grew up in a place where power was a scarcity. I know what it means to not be able to count on having electricity. How it dampens economic activity, human health, and prosperity is something I know very well. In today's digital world, having power is even more important than it was when I was growing up as a child. Power needs to be power needs without a question. Are going to be rising and are secular. 1 thing you can be certain of the need for power will soar in the coming years. And Bloom has built a platform to deliver power cleanly reliably, and at scale to those who need it. And as we have proved time and again, we are able to deliver it and generate profits and returns for our shareholders and scale our business for growth using a self funded model. Our future is bright. I am grateful for the work, and I am really grateful to work with such a strong team. And on such a meaningful mission, that I am so energized and I see our bright future very clearly in my eyes. Thank you for supporting Bloom. You all have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy. Bloom Energy (BE) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Revenue: $1.24 billion, up 138% year over year and 16% sequentially; record quarter. - Product Revenue: $1.07 billion, up 179% year over year and 15% sequentially; crossed $1 billion for the first time, representing 87% of total revenue. - Service Revenue: $67.6 million, up 15% year over year and roughly flat sequentially. - Installation Revenue: $84.9 million, up 29% year over year and 66% sequentially. - Product Gross Margin: 38.4%, up 250 basis points year over year and 120 basis points sequentially. - Services Margin: 21.4%, up 700 basis points year over year; second consecutive quarter above 20%. - Total Gross Margin: 34.5%, up 412 basis points year over year. - Operating Expenses: $141 million, up 26% year over year. - Operating Income: $286 million, up over 500% year over year and 19% sequentially. - Operating Margin: 23.1%, up from 8.9% a year ago and 60 basis points sequentially. - Adjusted EBITDA: $299 million, representing 24% of revenue; expansion of 1,286 basis points year over year. - Non-GAAP Diluted EPS: $0.94, compared with $0.15 a year ago. - GAAP Diluted EPS: $0.78, compared with a loss of $0.10 a year ago. - Cash Flow from Operations: Use of $27 million in the quarter, driven by working capital increases (inventory, contract assets, receivables). - Free Cash Flow: Use of $181 million in the quarter; positive $42 million year-to-date. - Capital Expenditures: $153 million in the quarter; $231 million year-to-date. - Cash Balance: $2.5 billion at quarter end. - Year-to-Date Revenue: $3.05 billion, already 50% above full-year 2025 revenue. - Full-Year Revenue Guidance: Raised to $4.4 billion$4.6 billion, approximately 122% year-over-year growth at the midpoint. - Full-Year Gross Margin Guidance: Maintained at approximately 34%, up from 30% in 2025. - Full-Year Operating Income Guidance: Raised to $960 million$1.03 billion, approximately 22% operating margin at the midpoint. - Full-Year Non-GAAP Diluted EPS Guidance: $3.10$3.40. - Warning! GuruFocus has detected 5 Warning Signs with BE. - Is BE fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Revenue surged 138% year over year to $1.24 billion, with product revenue crossing $1 billion for the first time. - Operating income grew over 500% year over year to $286 million, with operating margin expanding to 23.1% from 8.9%. - Full-year revenue guidance raised to $4.4-$4.6 billion, implying ~122% growth at the midpoint, the third raise this year. - Strong customer momentum: Oracle project delivered in under two months, Nebius 300 MW data center on track, and US Army conditional award. - Carbon capture and sequestration (CCS) opportunity highlighted, with AEP's 700 MW project for Google and potential $1 trillion market. - Cash flow from operations was a use of $27 million in the quarter due to working capital build, despite strong revenue. - Free cash flow was negative $181 million in the quarter, though positive $42 million year-to-date. - Gross margin outlook maintained at ~34% despite higher revenue, due to mix and startup costs from new production lines. - Quarterly revenue cadence is driven by customer delivery timing, creating potential variability in results. - Backlog growth not quantified, and guidance remains annual rather than quarterly, limiting near-term visibility. Q: Mark Strouse of JPMorgan asked why Bloom decided to expand its Fremont real estate footprint now, and whether the new facility would take annual capacity beyond 5 gigawatts to over 10 gigawatts.A: CEO K.R. Sridhar said the decision reflects clear conviction that electricity demand will skyrocketdriven not just by AI but by resiliency, security, and critical infrastructure needs in the US and internationally. He said the 5-gigawatt milestone is "just a milestone in a long journey," and Bloom is preparing for what comes after it. He stressed Bloom will never add capacity in a step function, but will dial it up like an "analog dial" to avoid being the bottleneck to customers, without providing a timeline. Q: Nick Amicucci of Evercore ISI asked about the utility opportunityspecifically the TAM for regulated utilities procuring Bloom servers front-of-the-meter, given fuel cells now appearing in IRPs.A: CEO K.R. Sridhar framed it around two customers: the ratepayer and the utility. He said if utilities view Bloom servers as distribution assets that lower total cost while maintaining service, they can ask policymakers to rate base procurement and place them in the transmission and distribution base. This lets utilities procure based on IRP plans without waiting for a specific customer order, avoiding losing customers and rate base to behind-the-meter solutions. He called it a "huge growth business" as regulators give utilities more leeway. Q: David Arcaro of Morgan Stanley asked where future initiativescarbon capture, combined heat and power (CHP), and 800-volt DCstand in terms of commercial opportunity and near-term market adoption.A: CEO K.R. Sridhar highlighted the AEP announcement of 700 megawatts of carbon-capture-enabled Bloom servers providing near net-zero power to Google, noting combustion technologies cannot offer an affordable, scalable path to carbon capture. He sees CCS as a greater than $1 trillion opportunity. On 800-volt DC, he said a gigawatt data center saves over $5 billion in the first five years, calling adoption a "no-brainer" that will happen as 800V DC racks arrive. On CHP, he said capturing heat for cooling can cut ~20% of power demand and will be a huge growth factor for C&I customersall on the same platform. Q: Chris Dendrinos of RBC Capital Markets asked whether time-to-power remains sub-90 days given the growing backlog, and how quickly Bloom delivered to the Nebius site in megawatts.A: CEO K.R. Sridhar said Bloom's servers are ready for Nebius's full 300 megawatts and Bloom "will not be the bottleneck" to turning on the data center, with the first block nearly ready and Bloom present for every subsequent block. He cited NVIDIA's CEO saying every quarter of delay in a gigawatt data center means $10 billion of missed revenue, arguing no cleaner or faster on-site technology exists to get an air permit. Q: Manav Gupta of UBS asked how data centers evaluate LCOE versus total delivered cost, referencing a report that a 1-gigawatt facility can save up to 9% by switching to Bloom, and asked about water conservation advantages.A: CEO K.R. Sridhar said a wet-cooled CCGT would consume roughly 25,000 million gallons of water over the life of a 1-gigawatt data center versus about 1.4 million for Bloom"not even a drop in the ocean." On cost, he said the real metric is total electricity cost per token delivered: from LCOE to delivered grid power to rack power to token power costs, Bloom is the "overwhelming cost leader" when all costs are combined. Q: Sunaina Ocalan of Bernstein asked whether other hyperscalers are showing interest in carbon capture optionality following the AEP-Google deal, and what it does to delivered power costs.A: CEO K.R. Sridhar said there is significant interest from all hyperscale customers, and he expects almost all customers will soon at minimum buy carbon-capture-ready systems so they can accommodate once a CO2 pipeline and sequestration well are available. He said a 10% to 15% cost premium is a reasonable level most hyperscalers would accept for zero-carbon power, and Bloom can deliver within that rangemaking it the most affordable and technologically ready CCS platform. Q: Mark Strouse of JPMorgan asked why the full-year gross margin outlook stayed at approximately 34% despite higher revenue, and whether further gross margin upside should be expected as revenue ramps in 2027.A: CFO Simon Edwards noted total gross margin rose from 28.7% in 2024 to 30.3% in 2025 and 34.5% in Q3 2026, with product margins strong on pricing and cost reductions. He said Bloom is balancing margin expansion with capturing the market opportunityramping new production lines and expediting deliveries carries near-term costs, and engineering, sourcing, and manufacturing cost programs will take time to flow through COGS. He said to think about it "from the lens of the long game," with more scale benefits as lines mature and utilization increases. Q: Nick Amicucci of Evercore ISI asked about the free cash flow profile after a $27 million use of cash from operations in the quarter, and any one-offs to frame.A: CFO Simon Edwards said Bloom views the business as self-funding, reducing dependence on external capital and lowering execution risk. He said the quarterly cash use is "not the beginning of a trend"Bloom generated positive CFOA year-to-date even while increasing operating investments and funding working capital for customer deployments. He said Bloom believes it will be a free cash flow positive business and that capital efficiency and returns on CapEx investments support the trajectory. Q: Ben Kallo of Baird asked how to think about capacity additions approaching 5 gigawatts into next year, any supply constraints, and how Bloom capitalizes on "not in my backyard" dynamics pushing developers internationally.A: CEO K.R. Sridhar said Bloom has not given quarter-to-quarter or year growth numberscapacity is a dial adjusted to demand, and he doesn't see it dialing down anytime soon. On international, he said Bloom's advantage is even greater in markets where natural gas costs are much higher than in the US, because less fuel is consumed per token. He said international markets are very attractive and to expect good news on expansion in the near future. Q: For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Bloom Energy reported record third-quarter revenue and a sharp increase in profitability on Thursday, driven by growing demand for its fuel cell technology as data centers and other energy-intensive industries seek reliable onsite electricity generation. The California-based company posted revenue of $1.24 billion for the third quarter of 2026, a 138.1% increase from $519 million in the same period last year. Product revenue surged 179.4% to $1.07 billion, accounting for the bulk of the company's sales. Net income attributable to common stockholders reached $250.3 million, reversing a $23.1 million loss a year earlier. Diluted earnings per share climbed to $0.78 from a loss of $0.10, while adjusted earnings per share increased to $0.94 from $0.15. Profitability also improved significantly. Bloom's gross margin expanded to 33.8% from 29.2% a year earlier, while operating income jumped to $225.4 million from just $7.8 million. The strong results prompted Bloom Energy to raise its full-year 2026 revenue forecast to between $4.4 billion and $4.6 billion, up from its previous guidance of $3.9 billion to $4.2 billion. At the midpoint, the revised forecast represents approximately 122% annual revenue growth. The company also increased its adjusted earnings guidance to $3.10–$3.40 per share and expects non-GAAP operating income of between $960 million and $1.03 billion. The latest revision marks Bloom's third upward guidance adjustment this year, reflecting accelerating demand for its distributed power generation systems. Bloom Energy's solid oxide fuel cells provide onsite electricity for data centers, semiconductor manufacturers, industrial facilities and other commercial customers. The company has emerged as a major beneficiary of the artificial intelligence infrastructure boom, as hyperscale data center developers increasingly pursue alternatives to traditional grid-connected electricity supplies amid growing power requirements and grid connection constraints. In June, Bloom and Brookfield Asset Management expanded their financing framework for AI-related power infrastructure from $5 billion to $25 billion, a fivefold increase from their original agreement announced in October 2025. The expanded partnership is intended to support the deployment of Bloom's fuel cell systems for large-scale AI infrastructure projects, highlighting the growing investment flowing into distributed electricity generation. Despite its earnings growth, Bloom reported negative operating cash flow of $27.1 million in the third quarter, compared with positive cash flow of $226.4 million in the preceding quarter. Capital expenditures also increased to $153.5 million from $51.6 million in the second quarter, underscoring the investment requirements associated with its rapid expansion. Bloom also highlighted its addition to the S&P 500 index, marking another milestone for the fuel cell manufacturer as it scales its business to meet rising electricity demand. The results reinforce the growing commercial importance of onsite power generation as AI development and industrial electrification place increasing pressure on conventional electricity infrastructure. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com - Petrobras' Deepwater Push Sets Off a Race for Offshore Vessels - Oil Prices Climb Above $110 as Middle East Supply Fears Persist - Russia to Send First Diesel Tanker to U.S. on Thursday Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else. You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.

- Current Price: $827.42 - Target Price (Mid): ~$3,000 - Street Target: ~$1,224 - Potential Total Return: ~262% - Annualized IRR: ~36% / year __Now Live: Discover how much upside your favorite stocks could have using TIKR's new Valuation Model (It's free)__ >>> GE Vernova (GEV:NYSE) closed at $827.42 on Thursday, October 22, down 10.64%, the session after Meta Platforms (META) reported third-quarter results. Meta's release showed capital spending, including finance lease principal, of $34.91 billion, free cash flow of negative $2.12 billion, a 2026 capex range narrowed to $135 billion to $145 billion, and new non-voting Class C shares created partly for capital raising. Barron's blamed AI financing fears tied to Meta, and Investor's Business Daily asked whether Meta was to blame. GE Vernova's only release that day covered a GE Vernova Foundation education program in the UK. The selling hit the group. Vertiv (VRT) fell 7.81%, and Bloom Energy (BE) fell 8.70% ahead of its own report that evening, while the S&P 500 lost 1.21%. GE Vernova shed about $26 billion of market value and closed 29.57% below its June 30 record close of $1,174.86, though it remained up about 27% in 2026. The market priced a question about how AI buyers fund equipment. GE Vernova's gas customers pay early. At Morgan Stanley's Laguna conference on September 16, CEO and President Scott Strazik contrasted wind's early-stage selections with "a gas slot reservation agreement that has like 25% down." Second-quarter cash from operations reached $5.49 billion against an average estimate of about $1.55 billion, and TIKR shows $9 billion of net cash. That cash has bought stock in sell-offs before: 12.4 million shares at an average of $560 from the buyback's launch through June 30, 2026, which Strazik described as "taking advantage of moments of disruption." Strazik also called the 2035 target for Power Services revenue, $22 billion from $12 billion in 2025, "a conservative marker," as turbines shipped late this decade reach their first outages about four years later. He said that over time "a large majority of these data centers will be grid connected," though many customers only hope to connect within five to seven years, without a guarantee. Two things cut the other way. Second-quarter adjusted EPS of $2.41 missed the $3.01 estimate, and consensus has free cash flow falling around 35% in 2027. TIKR tracks 38 analysts on GE Vernova. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on GE Vernova, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See GE Vernova's Analyst Ratings - Current Price: $827.42 - Target Price (Mid): ~$3,000 - Potential Total Return: ~262% - Annualized IRR: ~36% / year The mid case runs to December 31, 2030, and from $827.42 it implies around 36% a year. Consensus on TIKR has normalized EPS rising from around $15 in 2026 to around $59 in 2030, so earnings growth carries the return. Wall Street's mean target of around $1,224 rests on 25 Buy, 6 Outperform, 7 Hold, and 2 No Opinion ratings in TIKR's data, which does not include the $470 Sell rating GLJ Research initiated on September 14. Upside comes if third-quarter commitments beat expectations. Downside comes if slower hyperscaler orders arrive alongside the 2027 cash dip, removing the deposit cushion. The output is a scenario, not a forecast. GE Vernova reports before the open on October 28. BofA Securities analyst Andrew Obin expects $21.0 billion of orders, below a $22.2 billion consensus, plus about 13 gigawatts of gas contracts, a figure that counts slot reservations alongside firm orders. Orders at or above consensus, with operating cash again ahead of earnings, would answer the October 22 fear. Orders below $21 billion would give it the first company-reported evidence. Meta's Class C shares take effect on January 19, 2027, so the financing question will outlast one quarter. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what GE Vernova could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Analyze GE Vernova on TIKR Free →

Bloom Energy Corporation BE reported third-quarter 2026 operating earnings of 76 cents per share, beating the Zacks Consensus Estimate of 56 cents by 35.71%. The company separately reported non-GAAP earnings of 94 cents per share compared with 15 cents in the year-ago quarter. Revenues surged 138.1% year over year to $1.236 billion, surpassing the Zacks Consensus Estimate of $1.071 billion by 15.41%. Strong product demand drove growth, with product revenues crossing $1 billion for the first time. Improved margins and higher operating income supported the company's decision to raise its full-year outlook. Product revenues climbed 179.4% to $1.074 billion from $384.3 million in the year-ago quarter. The business contributed approximately 87% of total revenues, reflecting increased deliveries of onsite power systems. Installation revenues increased 29% to $84.9 million from $65.8 million. Service revenues rose 15.3% to $67.6 million from $58.6 million, while Electricity revenues declined 5.2% to $9.8 million from $10.4 million. Bloom Energy Corporation price-consensus-eps-surprise-chart | Bloom Energy Corporation Quote Product gross margin improved to 38.4%, expanding 250 basis points year over year and 120 basis points sequentially. Strong pricing and manufacturing cost reductions supported the improvement despite expenses associated with expanding production lines and accelerating customer deliveries. Management highlighted growing demand for onsite electricity from artificial intelligence data centers, commercial facilities and critical infrastructure. Bloom Energy's customer backlog continued to expand faster than revenues, supported by increasing diversity across customers, industries and geographies. Gross profit increased to $417.1 million from $151.7 million in the year-ago period. Non-GAAP gross margin improved to 34.5% from 30.4%. Service gross margin reached 21.4%, increasing 700 basis points year over year, marking the second consecutive quarter above 20%. Operating expenses increased 33.3% to $191.7 million from $143.8 million. Research and development expenses rose 31.7% to $64.1 million, while sales and marketing expenses increased 24.8% to $52.4 million. General and administrative expenses climbed 41.4% to $75.1 million. Non-GAAP operating income surged to $285.7 million from $46.2 million, while the corresponding margin expanded to 23.1% from 8.9%. Management highlighted five commercial developments supporting its growth strategy. These included a conditional U.S. Army award involving partner Indelible and a 700-megawatt carbon capture-enabled project involving AEP and Google. Bloom Energy also reported its first shipments to Texas, expanding utility relationships and growing international interest in onsite power systems. Management expects utility-related projects, including systems deployed on distribution networks, to become an important source of future business. Net income attributable to common stockholders reached $250.3 million in contrast to a loss of $23.1 million in the third quarter of 2025. Adjusted EBITDA climbed to $299.5 million from $59 million, reflecting substantially stronger operating performance. The company continued investing in manufacturing capacity to support customer demand. Management emphasized that higher production volumes, improved utilization and ongoing cost-reduction initiatives could support its long-term margin structure. Cash flow from operating activities was negative $27 million during the quarter. Increased inventories, contract assets and receivables absorbed cash as the company supported higher delivery volumes and future customer requirements. Capital expenditures totaled $153 million, resulting in negative free cash flow of $181 million. As of Sept. 30, 2026, cash and cash equivalents stood at $2.49 billion, while total stockholders' equity reached $1.96 billion. Bloom Energy raised its 2026 revenue guidance to $4.4-$4.6 billion from the previous range of $3.9-$4.2 billion. The revised midpoint represents approximately 122% year-over-year growth, supported by strong third-quarter performance and improved visibility into customer deliveries. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $4.14 billion. Management maintained its non-GAAP gross margin forecast at approximately 34%. The company increased its non-GAAP operating income guidance in the range of $960 million to $1.03 billion from the previous band of $800-$900 million. Non-GAAP earnings guidance was also raised to $3.10-$3.40 per share from the previous projection of $2.55-$2.85. Bloom Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Plug Power PLUG is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 7 cents per share, which indicates a year-over-year improvement of 41.7%. FuelCell Energy FCEL is expected to release fiscal fourth-quarter earnings on Dec.17, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 28 cents per share, which implies year-over-year growth of 66.3%. Gevo GEVO is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate earnings per share for the quarter is pegged at 4 cents, which indicates a year-over-year increase of 233.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bloom Energy Corporation (BE) : Free Stock Analysis Report Plug Power, Inc. (PLUG) : Free Stock Analysis Report FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report Gevo, Inc. (GEVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bloom Energy (BE) shares plunged more than 11% on Friday, Oct. 23, despite the fuel-cell maker reporting better-than-expected third-quarter earnings and raising its full-year outlook. The sell-off comes as investors grow increasingly sensitive to AI-related headlines. Meta Platforms (META) shares also fell this week following its latest earnings report, as concerns over the cost of massive AI investments overshadowed strong results. Bloom Energy makes fuel-cell systems that supply electricity to data centers and semiconductor factories. The company joined the S&P 500 last month. "What began with hyperscalers is rapidly moving across market segments because every business needs reliable power to grow," Bloom Energy founder and CEO KR Sridhar said in a statement. The stock has rallied 122% year-to-date, benefiting from surging AI demand. But now investors are questioning whether its rapid growth can justify its valuation. The company reported third-quarter adjusted earnings of 94 cents per share, well above analysts' expectations of 69 cents. Earnings were also up sharply from 15 cents a share a year earlier. Revenue jumped 138% year over year to $1.24 billion, beating Wall Street's forecast of approximately $1.06 billion. Also read: Meta stock falls despite Wall Street analysts raising price targets Bloom also raised its full-year 2026 guidance, now expecting earnings of $3.10 to $3.40 per share on revenue of $4.4 billion to $4.6 billion. Despite the rosy numbers above, Bloom reported more than $180 million in negative free cash flow in the third quarter. "This quarter we used cash from operations. But that's not the beginning of a trend," Bloom's CFO Simon Edwards explained on the earnings call. "We generated positive [cash flow from operating activities] year-to-date." "We really do believe that this business will be a free cash flow positive business as we think about continuing to be able to fund our own growth," Edwards said. Wall Street analysts offered mixed reactions to Bloom's latest results. JPMorgan lowered its price target on Bloom Energy to $292 from $314 while maintaining an Overweight rating, according to The Fly. The firm attributed the reduction to lower trading multiples among comparable companies rather than concerns about Bloom's operating performance. JPMorgan noted that Bloom's third-quarter results were well above expectations and that the company had significantly raised its 2026 guidance for the third time this year. The company's execution "continues to impress," JPMorgan said. Morgan Stanley is more bullish on the stock for similar reasons. The analyst raised the price target on Bloom Energy to $335 from $310 while maintaining an Overweight rating. More Artificial Intelligence: - AI's biggest business opportunity may not look like AI - AI racks are outgrowing old power: 2 chipmakers have a strategy - BofA splits software into winners and losers as AI agents arrive The firm said Bloom exceeded both Wall Street consensus and buy-side expectations for revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). "Another beat and raise continues Bloom's strong execution," the analyst said. Bloom's sell-off is just part of a broader shift in investor sentiment, with even strong earnings struggling to lift tech stocks amid concerns over risks. "For the last two weeks, investors have been sprinting from tech stocks and data center beneficiary stocks to safe stuff, and eventually, you run out of people willing to do that sprint, and that's what today looks like and feels like," Jed Ellerbroek, portfolio manager at Argent Capital Management, said in a CNBC interview. Ellerbroek said strong earnings from tech companies could help ease investors' fears. "Emotion and fear play a really big role," he said. But, "we've gotten a few tech companies' [latest quarterly financial reports] and their earnings results have been good." Related: Cathie Wood sells $16 million of surging tech stock This story was originally published by TheStreet on Oct 23, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

Bloom Energy (BE:NYSE) shares are down about 11% today (trading at about $193) after the fuel cell maker's record third quarter came with a $27.1 million operating cash outflow. This year's $611 million rise in customer deposits and deferred revenue nearly matched a $617 million jump in unbilled contract assets. Inventory, receivables and higher capex still pushed free cash flow negative. - Revenue of $1.24 billion, up 138.1%, per the Q3 release - 2026 revenue guidance raised a third time, to $4.4 billion to $4.6 billion - Capex of $153.5 million, about 3x the second quarter - Free cash flow of negative $180.6 million (still positive $41.6 million over nine months) Contract assets ended September at $859 million, against $754 million of deposits and deferred revenue. Inventory and receivables absorbed another $346 million in the quarter. CFO Simon Edwards said on Thursday's call that the quarter is "not the beginning of a trend." Q4 is the test. Edwards called $375 million plus the 2026 baseline for operating cash flow on the July call, then left that figure out on Thursday. After $272.9 million in nine months, Q4 needs about $102 million. The last two fourth quarters brought in $484 million and $418 million. See the full breakdown of Buy, Hold, and Sell ratings on Bloom Energy, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one See Bloom Energy's Analyst Ratings The sell-off erased about $7.4 billion in market value today, roughly 41x the quarter's cash shortfall. The bigger flag sits in the 10-Q: two customers made up about 43% and 26% of Q3 revenue, and the second is a related party. That adds collection risk, though the filing doesn't say how much of the $859 million in contract assets those two buyers account for. Analysts expect normalized EPS of $3.27 in 2026, just above the midpoint of Bloom's $3.10 to $3.40 guide. They see it rising to $5.15 in 2027 and $8.17 in 2028. At about $193, that's about 37x 2027 earnings and 24x 2028. That 2028 multiple depends on Bloom hitting those forecasts. Fourth-quarter results, due early next year, are the next check on whether its growth is turning into cash. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what BE stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Bloom Energy Corporation for free→