Plug Power (NASDAQ:PLUG) reported first quarter 2026 results that exceeded revenue expectations and showed continued improvement in profitability metrics, alongside ongoing expansion across its hydrogen business segments.
The company posted revenue of $163.5 million for the quarter, up 22% year over year and above consensus estimates of roughly $141 million to $148 million. Analysts had expected revenue of about $142.5 million. Plug attributed the increase to growth in its material handling and electrolyzer solutions businesses.
Adjusted loss per share of $0.08 was better than the expected loss per share of $0.10.
Plug said its GAAP gross margin improved to negative 13% from negative 55% a year earlier, reflecting a 42 percentage-point improvement. The company cited higher sales volumes, cost optimization, and improved hydrogen fuel sourcing and service execution as key drivers of margin expansion.
Revenue from hydrogen fuel sales increased 22% year over year, supported by customer additions and pricing changes. Plug also reported a 54 percentage-point improvement in hydrogen fuel margin rates compared with the prior-year period, driven by higher utilization of its production network and lower third-party sourcing costs.
In its material handling segment, Plug highlighted continued demand from existing customers, including Amazon and Walmart, along with improved service efficiency. The company said per-unit service costs declined more than 30% year over year.
In electrolyzer solutions, Plug reported more than 320 megawatts of deployed capacity globally and cited an $8 billion project pipeline. The company pointed to ongoing projects in Portugal and Spain, as well as early-stage development work in Canada and Uzbekistan.
“Our first quarter results reflect strong commercial execution and continued progress improving the underlying economics of the business and positions us to achieve our EBITDAS positive target in Q4 2026,” Plug CEO Jose Luis Crespo said in a statement.
“We exceeded internal expectations on revenue, delivered on our margin and EPS targets, and continue to strengthen our financial position.”
Shares of Plug added 0.7% at $3.55 in the early afternoon on Tuesday.