Bloom Energy Erupts On Beat, Guidance Upgrade As On-Site Data Center Power Demand Soars
Clean-power company Bloom Energy surged early in the U.S. cash session after reporting earnings Tuesday after the close, raising its full-year revenue and margin guidance on rising demand from data centers and other commercial customers.
The maker of solid oxide fuel cell systems, branded as Bloom Energy Servers, that generate electricity on-site for customers, posted a profit of $70.7 million, or 23 cents a share, compared with a loss of $23.8 million, or 10 cents a share, from the same quarter one year ago.
On an adjusted basis, earnings came in at 44 cents per share in the first quarter, beating analysts' estimates tracked by Bloomberg of 8.4 cents per share.
Here's a snapshot of first-quarter earnings (courtesy of Bloomberg):
Adjusted EPS 44c, estimate 8.4c
EPS 23c
Revenue $751.1 million, estimate $535.3 million
- Product revenue $653.3 million, estimate $397.9 million
- Installation sales $25.9 million, estimate $49.2 million
- Service revenue $61.9 million, estimate $71.7 million
- Electricity revenue $9.90 million, estimate $14.1 million
Adjusted Ebitda $143.0 million, estimate $52.9 million
Adjusted net income $138.1 million, estimate $26.7 million
"We at Bloom are ushering in the era of digital power for the digital age. Bloom is rapidly becoming the standard and "go-to choice" for on-site power," Bloom CEO KR Sridhar wrote in an earnings press release.
For the full year forecast, here's what Bloom expects:
Sees revenue $3.4 billion to $3.8 billion, saw $3.1 billion to $3.3 billion, estimate $3.25 billion (Bloomberg Consensus)
Sees adj. gross margin about 34%, saw about 32%, estimate 31.9%v
Shares of Bloom jumped as much as 20% in the cash session to a new record high.
Wall Street analysts were broadly positive (commentary courtesy of Bloomberg):
Citi (neutral, PT raised to $281 from $229)
Analyst Vikram Bagri sees the first quarter revenue beat as strong, driven by capacity expansions and product sales
Sees second-quarter revenue rising on continued strong momentum, cost discipline and improving gross margins and operating leverage
"International opportunities continue to progress, albeit at a measured pace amid a challenging geopolitical and energy backdrop, with the majority of AI‑driven power demand currently concentrated in the US"
Morgan Stanley (overweight, PT raised to $310 from $184)
Analyst David Arcaro sees Bloom's outlook as attractive with revenue and profit set to increase and margins continuing to expand
"We believe the confirmation of the recent Oracle deal likely contributed to the increase, with at least 1.2 GW being delivered over 2026 and 2027, and the company also suggested broadbased strength across data center and C&I end markets"
Sees manufacturing efficiencies improving gross margins
Jefferies (hold, PT raised to $207 from $187)
Analyst Dushyant Ailani sees the guidance raise as positive with gross margins improving on cost optimization and productivity
"BE is increasingly moving beyond the 'bridge solution' narrative, supported by its standalone microgrid deployment with Oracle and similar discussions with other customers"
Sees Bloom reaching at least 2 GW of capacity by year-end 2026 as additions continue
Bloom peers, including Plug Power, FuelCell Energy, and Ballard Power Systems, also moved higher.