Earnings
Bloom Energy more than doubles third-quarter revenue and raises its 2026 outlook for the third time, but burns cash as capex jumps
The fuel-cell maker now expects $4.4 billion to $4.6 billion of 2026 revenue, up from $3.9 billion to $4.2 billion in July, while operating cash flow turned negative in the quarter.
HedgeWeekly News Desk ·
Bloom Energy reported third-quarter revenue of $1.24 billion on Thursday, up 138% from $519 million a year earlier, according to results filed with the SEC. Product revenue rose 179% to $1.07 billion. The onsite power-generation company swung to a GAAP profit of 78 cents a diluted share from a 10-cent loss, and non-GAAP earnings reached 94 cents against 15 cents a year ago.
Margins widened alongside volume. GAAP gross margin rose to 33.8% from 29.2%, and GAAP operating income climbed to $225.4 million from $7.8 million, an 18.2% operating margin. Revenue was also about 16% above the $1.07 billion Bloom booked in the second quarter. The company pointed to demand from hyperscalers and data centres, semiconductor plants, utilities and industrial sites, without naming customers.
Bloom lifted its full-year targets for the third time this year. It now expects 2026 revenue of $4.4 billion to $4.6 billion, against the $3.9 billion to $4.2 billion range set in July, non-GAAP operating income of $960 million to $1.03 billion versus $800 million to $900 million, and non-GAAP EPS of $3.10 to $3.40, up from $2.55 to $2.85. The non-GAAP gross margin target was kept at about 34%.
Why it matters: the profit surge has not yet turned into cash. Operating activities used $27.1 million in the quarter, compared with $19.7 million generated a year earlier, and purchases of property and equipment rose to $153.5 million from $12.3 million as Bloom builds capacity. Cash and equivalents of $2.49 billion leave room to fund that expansion, but investors in AI-power names will watch whether working capital and capex ease enough for cash flow to track earnings, and whether the company gives a first 2027 outlook, which it did not provide this quarter.