Bloom Energy Raises 2026 Revenue Outlook to $4.4–$4.6 Billion
Key Facts
On October 22, Bloom Energy raised its fiscal 2026 revenue forecast to a range of $4.4 billion to $4.6 billion, equivalent to 122% year-over-year growth at the midpoint. The announcement coincided with results for the third quarter ended September 30, after the company posted record quarterly revenue. Chief Financial Officer Simon Edwards said year-to-date performance and customer demand supported the third increase to the forecast this year. He added that the period’s performance and demand gave management confidence to raise its outlook. The new guidance puts demand for the company’s systems at the forefront of its results, while converting sales growth into cash remains an important factor in assessing performance.
Third-quarter revenue was $1,235.8 million, up 138.1% from the same period a year earlier. Product revenue was $1,073.6 million, up 179.4% year over year. Products therefore accounted for the largest share of quarterly revenue, while their growth exceeded the overall revenue growth rate. Chief Executive K.R. Sridhar said demand that began with hyperscalers was quickly spreading to other market segments. He added: "What started with hyperscalers is quickly spreading across market segments, because every company needs reliable power to grow."
Gross margins improved alongside revenue growth, reaching 33.8% on a GAAP basis and 34.5% on a non-GAAP basis. The former rose 453 basis points from the third quarter of 2025, while the latter increased 412 basis points. Operating income was $225.4 million on a GAAP basis, compared with $285.7 million on a non-GAAP basis. Diluted earnings per share were $0.78 on a GAAP basis and $0.94 on the other measure. For fiscal 2026, the company expects non-GAAP gross margin of about 34%, operating income of $960 million to $1.03 billion, and earnings per share of $3.10 to $3.40 on the same basis.
The higher outlook comes as the company expands investment, while operating cash flow turned negative in the third quarter. Net cash used in operating activities was $27.147 million, after the company generated net cash from operations of $226.432 million in the second quarter. Purchases of property and equipment were $153.487 million in the third quarter, compared with $51.641 million in the previous quarter. The contrast between the two quarters shows higher capital spending alongside a shift to operating cash use. Bloom Energy aims to manufacture more than 5 gigawatts annually over the longer term, and in August it leased a 158,000-square-foot manufacturing and warehouse facility in Fremont.
Some demand opportunities are tied to data centers’ need for electricity that can be supplied on site. The Motley Fool reported that Bloom’s natural-gas-powered cells can be delivered to a site within a few months, while securing a direct connection to the grid may take up to 7 years. The publication named Oracle, Nebius, Brookfield Asset Management and utility American Electric Power among entities linked to the company’s customers or data center projects. Bloom management said in its second-quarter results that major data center and AI operators had approved the company’s solutions to power AI factories. Management’s comments reflect the widening scope of demand the company is targeting, from hyperscalers to other market segments.
Bloom Energy’s inclusion in the S&P 500, effective September 21, 2026, preceded the results announcement. The company set October 22 as the date to report third-quarter results after the market close, with an investor call scheduled for the same day. In a report published on November 4, The Motley Fool said delivering fuel cells on site within a few months could shorten the timeline compared with waiting for a grid connection, which may take up to 7 years. This factor puts the speed of power delivery in the context of data center expansion and the demand cited by company management. The long-term manufacturing plans and leased Fremont facility also put the company’s capacity to increase production within the broader expansion trajectory.