| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | — | 17.8x | Bottom tier | |
Growth | 68 | 1.1% | 7.1% | Top tier | |
Quality | 10 | -19.6% | 4.5% | Bottom tier | |
Safety | 39 | — | 2.6x | Bottom tier | |
Capital Return | 28 | — | 2.12% | Bottom tier | |
Momentum | 74 | 380.4% | 2.9% | Top tier | |
Sentiment | 91 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
FuelCell Energy develops distributed power generation systems based on fuel cells and is increasingly targeting data centers and high-density computing loads through FuelCell Energy Blocks, which provide continuous behind-the-meter power at the customer’s site. Revenue comes from product sales, service agreements, electricity generation, and advanced technologies contracts; in fiscal 2026 Q3, product revenue was $18 million, generation revenue was $8.8 million, advanced technologies revenue was $3.8 million, and service revenue was $2.4 million, out of total revenue of $33 million.
In fiscal 2026 Q3, ended July 31, 2026, revenue declined 29% to $33 million from $46.7 million and fell short of analysts’ estimates of $41.3 million. The company recorded a gross loss of $24.5 million, equivalent to a negative gross margin of approximately 74%, compared with a gross loss of $5.1 million in the comparable period; the result included $17 million in inventory charges and purchase commitments related to Phase 0 of the Fit Energy agreement. Net loss attributable to common stockholders was $45.3 million, or $0.64 per share, compared with $92.5 million, or $3.78 per share, while adjusted EBITDA remained negative at $36.7 million.
The fiscal 2026 Q3 mix reflects a transitional phase between the completion of existing business and expansion into data centers; product revenue declined following the completion of deliveries of all 42 units for the Gyeonggi Green Energy project in South Korea, while generation revenue also fell due to lower plant output and the 7.4-megawatt Groton project being out of service throughout the quarter. In contrast, committed backlog increased 4.1% to $1.3 billion, and total committed backlog and awarded capacity reached $3.6 billion as of July 31, 2026, making the conversion of these opportunities into profitable revenue central to the investment analysis.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $22.25, approximately 41% below the 52-week high of $37.88, with a consensus Buy rating. However, the wide range of targets between $8 and $30 reflects significant disagreement over the likelihood of converting data center capacity into profitable revenue, and there is no price-to-earnings multiple to rely on given the $175.1 million net loss for the twelve months ended in 2026. The valuation therefore rests more on future execution and achieving the adjusted profitability target in fiscal 2027 Q4 than on existing earnings.
Figures in the text are as of 2026-09-03; the live price is shown at the top of the page.
Revenue declined 29% year over year to $33 million in fiscal 2026 Q3, compared with $46.7 million, and fell short of analysts’ estimates of $41.3 million. The company recorded a gross loss of $24.5 million after $17 million in charges related to Phase 0 of the Fit Energy agreement. Loss attributable to common stockholders was $45.3 million, or $0.64 per share, while adjusted EBITDA was negative by $36.7 million.
The active proposal pipeline reached approximately 10 gigawatts during fiscal 2026, with data centers accounting for nearly 97% of it in fiscal 2026 Q3. The Fit Energy agreement covers up to 380 megawatts, including 30 megawatts committed under Phase 0 and 350 megawatts in optional phases. After July 31, 2026, the company added a 75-megawatt capacity reservation agreement for a project in Texas, but the definitive agreement and delivery schedule were not announced.
Committed backlog totaled $1.3 billion as of July 31, 2026, up 4.1% year over year, and represents definitive, non-cancelable agreements. Awarded capacity totaled $2.4 billion and consists of commercial awards and capacity reservations that are still progressing toward definitive agreements. This brought the total to $3.6 billion, but the company clarified that awarded capacity does not represent confirmed orders and may not convert, in whole or in part, into revenue.
The company is targeting positive adjusted EBITDA in fiscal 2027 Q4. The plan depends on raising the annual production rate from approximately 37 megawatts in fiscal 2026 Q3 to 100 megawatts in October 2026, then absorbing fixed costs and benefiting from larger purchasing volumes. Achieving the target also requires converting awarded capacity into committed contracts and aligning production with customer schedules, conditions that management does not guarantee will be met by the specified date.
Cash, cash equivalents, and restricted cash totaled $737.3 million as of July 31, 2026, including $658.1 million in unrestricted cash and $79.2 million in restricted cash. The company estimated that expanding Torrington to production capacity of 500 megawatts would require an investment of between $200 million and $275 million, with completion targeted for June 2028, and said the expansion is fully funded. However, the funding included $298 million in net proceeds from common stock sales in fiscal 2026 Q3, placing dilution risk alongside the company’s liquidity strength.
FuelCell Energy delivered two carbonate fuel cell units to the ExxonMobil complex in Rotterdam for an industrial demonstration of carbon capture technology. According to management, the demonstration targets capturing more than 90% of carbon from a low-concentration stream while simultaneously producing electricity, thermal energy, and hydrogen. In fiscal 2026 Q3, the company also signed a memorandum of understanding with Siemens to develop electrical balance-of-plant systems for projects exceeding 100 megawatts, aiming to accelerate deployment and reduce the cost of large projects.
