Bloom Energy’s Record Revenue Rises 138.1% to $1.2358 Billion in Third Quarter
Key Facts
Bloom Energy reported record results on October 22 for the third quarter ended September 30, 2026, with revenue rising 138.1% year over year to $1.2358 billion. The company said product revenue reached $1.0736 billion, up 179.4% from the same period a year earlier, accounting for most of quarterly revenue. The announcement came with a third increase to its full-year outlook in 2026, after management said year-to-date performance and customer demand gave it greater confidence in the forecast. But a sell-off after the results put cash flow and expansion spending at the center of investors’ reading of the figures. EL7 data showed the stock closed at $193.3 on October 23, while market coverage said it fell 11.2% in the session.
Operating profitability indicators improved alongside the sales surge. GAAP gross margin was 33.8% for the quarter, up 453 basis points, while adjusted non-GAAP gross margin reached 34.5%, up 412 basis points. GAAP operating income jumped to $225.449 million, compared with $7.846 million in the third quarter of 2025. Diluted earnings per share were also $0.78 on an accounting basis, versus a loss of $0.10 a year earlier. On an adjusted non-GAAP basis, earnings per share were $0.94, up from $0.15 in the year-earlier period.
The company set a 2026 revenue range of $4.4 billion to $4.6 billion, with adjusted gross margin of about 34%. It also forecast adjusted operating income of $960 million to $1.03 billion and adjusted earnings per share of $3.10 to $3.40. The chief financial officer said, "Our year-to-date performance and customer demand give us the confidence to raise our 2026 outlook for the third time this year." The guidance indicates the company expects its business to continue growing through the rest of the year, but remains an annual estimate issued by management. The company explicitly tied the higher outlook to its performance to date and demand, without describing the increase as having occurred in three consecutive quarters. The revenue and adjusted profitability ranges provide a benchmark for comparing subsequent results with the company’s stated targets.
By contrast, Investing.com reported that free cash flow remained negative at about $181 million in the third quarter. The coverage attributed this to a sharp increase in working capital, alongside capital expenditures of $153 million. It described the pace of capital spending as nearly four times its level a year earlier, indicating the amount of money directed toward expansion compared with the same period in 2025. Kiplinger also reported that operating cash flow and free cash flow were negative after the results were announced. The stock sold off as well: Investing.com said it fell nearly 12% in Friday morning trading on October 23, extending a move that began during Thursday’s regular session and intensified in after-hours trading. Kiplinger reported a decline of 11.2% in Friday’s session, while EL7 data recorded a closing price of $193.3 per share that day.
The company provides on-site power generation systems and says it serves data centers, semiconductor manufacturing, utilities, and industrial and commercial customers. The chief executive said, "What began with hyperscalers is rapidly spreading across market segments, because every company needs reliable power to grow." In management’s view, the comment places data center demand within a broader market, rather than making it the sole source of growth. At the same time, the company listed a potential slowdown in AI adoption among the risks that could slow the expansion of AI data centers. The risks also included the availability of financing to develop those centers, supply constraints, and permitting delays. These factors come alongside the high capital spending and negative cash flows that accompanied the third-quarter results.
Bloom Energy had announced on October 12 that it would release third-quarter results after the market closed on October 22. It also planned a call to discuss the results on October 22 at 2 p.m. Pacific time, or 5 p.m. Eastern time. The results were announced on the date set by the company, along with updated guidance for the rest of 2026. Investors are now focused on the company’s ability to turn the demand described by management into revenue and profitability within the new annual range. The pace of capital spending and cash flows will also remain part of the assessment, given the figures accompanying the third quarter. The information provided did not specify a subsequent results date or new annual guidance following the update issued on October 22.