What Bloom Energy (BE) Said on Its Q3 Earnings Call

Key Points

• Record Q3 performance: Bloom Energy reported $1.24 billion in revenue, up 138% year over year, with non-GAAP EPS rising to $0.94 and operating margin expanding to 23.1%. Product revenue exceeded $1 billion for the first time, supported by stronger pricing and cost reductions.
• Raised 2026 outlook: The company increased its full-year revenue guidance to $4.4 billion–$4.6 billion and projected non-GAAP EPS of $3.10–$3.40, while maintaining an approximately 34% gross-margin target.
• Data-center demand is driving expansion: Bloom cited accelerating interest in on-site, reliable power from hyperscale data centers and other critical customers, while investing in Fremont and Newark capacity. Despite negative third-quarter free cash flow of $181 million, Bloom ended the quarter with $2.5 billion in cash.

Bloom Energy NYSE: BE reported record third-quarter results and raised its full-year outlook, citing accelerating demand for on-site power from data centers, commercial and industrial customers, utilities and critical infrastructure.

Revenue for the third quarter of 2026 reached $1.24 billion, up 138% from a year earlier and 16% sequentially, according to Chief Financial Officer Simon Edwards. Non-GAAP operating income was $286 million, an increase of more than 500% year over year, while non-GAAP diluted earnings per share rose to $0.94 from $0.15 in the prior-year period. GAAP diluted EPS was $0.78, compared with a loss of $0.10 a year earlier.

Edwards said third-quarter operating margin expanded to 23.1% from 8.9% a year earlier as revenue growth outpaced a 26% increase in operating expenses. Adjusted EBITDA was $299 million, or 24% of revenue.

Revenue Mix and Margin Expansion

Product revenue totaled $1.07 billion, up 179% year over year and representing 87% of total revenue. Edwards said product revenue, which is recognized when systems are delivered and accepted by customers, surpassed $1 billion in a quarter for the first time.

Service revenue increased 15% to $67.6 million, while installation revenue rose 29% to $84.9 million. The company said installation revenue can fluctuate based on project timing and the mix of customer work because it is recognized over time.

• Product gross margin was 38.4%, up 250 basis points year over year.
• Service margin was 21.4%, up 700 basis points year over year.
• Total gross margin was 34.5%, up 412 basis points year over year.

Edwards attributed product-margin improvement to pricing strength and cost reductions, even as Bloom ramped production lines and expedited deliveries. He said the company expects additional benefits from scale as production capacity and utilization increase, although near-term expansion carries startup and delivery-related costs.

Higher 2026 Outlook

Bloom raised its full-year revenue outlook to a range of $4.4 billion to $4.6 billion, representing approximately 122% year-over-year growth at the midpoint. The company also increased its non-GAAP operating-income outlook to $960 million to $1.03 billion and projected non-GAAP diluted EPS of $3.10 to $3.40.

The company maintained its full-year non-GAAP gross-margin outlook of about 34%, compared with 30% in 2025 and its original 2026 outlook of approximately 32%. Edwards said the revenue guidance increase reflects third-quarter performance and improved visibility into fourth-quarter delivery timing. He noted that the timing of a small number of year-end deliveries will determine where results fall within the guidance range.

Year-to-date revenue was $3.05 billion, already 50% above the revenue Bloom generated during all of 2025, Edwards said. He added that third-quarter operating income alone exceeded operating income for the full prior year.

Cash, Capacity and Customer Deliveries

Cash flow from operations was a use of $27 million in the quarter, primarily reflecting working-capital investment in inventory, contract assets and receivables to support growth. Capital expenditures were $153 million in the quarter and $231 million year to date, focused mainly on machinery and production capacity at the company’s Fremont and Newark facilities.

Free cash flow was negative $181 million in the quarter but positive $42 million year to date. Bloom ended the quarter with $2.5 billion in cash. Edwards said the company views itself as a self-funding business and expects working-capital investments to support continued expansion, while emphasizing that contract assets and receivables should convert as billing milestones are reached and customers pay.

Chief Executive Officer KR Sridhar said Bloom is expanding its real-estate footprint in Fremont in preparation for demand beyond its previously discussed 5-gigawatt manufacturing milestone. However, he said the company would increase capacity gradually in response to demand rather than in a single large expansion and did not provide a timeline for additional capacity.

Data Centers, Utilities and Carbon Capture

Sridhar said hyperscale data-center customers are adopting on-site generation because of the speed, scale and reliability requirements of artificial intelligence infrastructure. He said Bloom delivered power to Oracle’s Utah site in less than two months after announcing the project and said the company has equipment ready for the first block of Nebius’ New Jersey data center as that facility is prepared for operation.

The CEO said the company’s backlog is expanding faster than revenue and is becoming more diversified across customers, industries and geographies. He also highlighted commercial opportunities in utility deployments, military and civilian critical infrastructure, commercial and industrial applications, and international markets.

Among developments discussed on the call, Sridhar pointed to an announcement by AEP that 700 megawatts of carbon capture and sequestration-enabled Bloom Energy Servers would provide Google with near-net-zero electricity. He said Bloom’s fuel-cell technology can provide a concentrated carbon-dioxide stream that makes carbon capture more viable than combustion-based generation technologies.

Sridhar said Bloom is seeing significant interest from hyperscale customers in carbon-capture-ready systems and believes customers could accept a roughly 10% to 15% premium for zero-carbon power. He also cited potential opportunities in combined heat and power systems and 800-volt direct-current power architectures for data centers.

Bloom was added to the S&P 500 during the quarter. Edwards said the inclusion reflected the company’s increased scale, profitability and consistency, while broadening its shareholder base.

About Bloom Energy (NYSE:BE)

Bloom Energy Corporation develops and manufactures energy systems designed to generate electricity on-site. Its primary product is the Bloom Energy Server, a solid oxide fuel cell platform that converts fuel into electricity through an electrochemical process rather than combustion. The systems are used by businesses, utilities, data centers and other organizations seeking reliable, distributed power.

The company also develops electrolyzers based on its solid oxide technology. These systems are designed to produce hydrogen from electricity and water and support applications related to industrial operations, energy storage and the emerging hydrogen economy.

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