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The Markets
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Software & services

Bloom Energy surges after blowout quarter

Shares of Bloom Energy Corporation (NYSE:BE) soared 23% on Wednesday after the fuel cell maker posted first-quarter results that nearly doubled Wall Street's revenue expectations and raised its full-year guidance, fuelled by surging demand from data center customers.

The company reported first-quarter revenue of $751.1 million, crushing the analyst consensus of $535.3 million, while adjusted EBITDA of $143 million came in nearly three times the estimated $52.9 million.

Adjusted earnings per share of $0.44 far exceeded the $0.084 consensus estimate.

Product revenue, the company's largest segment, reached $653.3 million in the quarter, which was more than three times the $212 million recorded in the same period a year earlier and ahead of the $639 million reported in the fourth quarter of 2025.

Bloom also reported a non-GAAP gross margin of 31.5% and non-GAAP operating margin of 17.3%, compared with 4% in the year-ago quarter.

On the strength of the results, Bloom raised its full-year 2026 revenue guidance to a range of $3.4 billion to $3.8 billion, up from its prior outlook of $3.1 billion to $3.3 billion, implying revenue growth of approximately 80% year-over-year at the midpoint and an increase from the previously guided 60% growth rate.

The company also lifted its gross margin target to 34% from approximately 32%, and raised its non-GAAP operating income outlook to $600 million to $750 million from $425 million to $475 million. Non-GAAP earnings per share are now expected in the range of $1.85 to $2.25.

Management said second-quarter revenues are expected to be at least as strong as the first quarter.

Executives also pointed to a coming industry-wide transition to 800-volt DC power architectures in data centers, saying Bloom's solid oxide fuel cells natively produce 800 VDC power — a potential advantage as high-density AI computing pushes traditional power distribution systems to their limits.

“The move toward 800 VDC power architectures in data centers represents a paradigm shift born out of necessity,” UBS analysts wrote.

“An 800 VDC infrastructure offers a clearly articulated value proposition: it can deliver dramatically more power per rack, with higher efficiency and potentially lower long-run costs, by slashing waste and material usage. In essence, it “does more with less.’”

UBS maintained its Buy rating on Bloom Energy shares following the results, raising its 12-month price target to $251.

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