Bloom Energy Q2 Earnings Beat Estimates on Product Growth, View Up

Revenues surged 165.5% to $1.065 billion and topped the Zacks Consensus Estimate of $814 million by 30.8%. Product revenues rose 215.4%, while record quarterly sales and stronger margins reflected robust demand for onsite power solutions.

BE's Product Business Drives Revenue Surge

Product revenues reached $935.4 million, up from $296.6 million in the year-ago quarter. This business accounted for the bulk of total revenues and was the primary contributor to the company’s top-line growth.

Installation revenues increased to $51 million from $37.4 million. Service revenues advanced to $69 million from $54.4 million, while Electricity revenues declined 22.3% to $9.95 million from $12.8 million.

Bloom Energy Expands Margins Sharply

Gross profit in the second quarter was $365.4 million, up 222.2% year over year.

Gross margin in the second quarter was 34.3%, up 604 basis points year over year. Product non-GAAP gross margin improved to 37.2% from 34.3%, while service non-GAAP gross margin rose to 22% from 12.2%.

Highlights of Q2 Release

Operating expenses in the second quarter rose to $173.3 million from $110.6 million. Research and development expenses increased 44.4% to $58.9 million, sales and marketing costs reached $43 million, and general and administrative expenses climbed 56% to $71.4 million.

Despite higher spending, operating income jumped to $239.6 million from $28.6 million, while the corresponding margin expanded to 22.5% from 7.1%.

Management said that all major U.S. hyperscalers and more than a dozen U.S. neoclouds, AI labs and colocation data-center operators have validated and approved Bloom Energy’s onsite power solutions for AI facilities.

The company is investing in production capacity and capabilities to capitalize on this demand. Management’s increased outlook also reflects its focus on maintaining profitable growth while expanding manufacturing and supporting customer deployments.

Bloom Energy Delivers Higher Profitability

Operating net income attributable to common stockholders was $248.2 million compared with a net income of $22.1 million in the second quarter of 2025. Adjusted EBITDA increased to $253.4 million from $41.2 million. The improvement reflected the stronger operating result, partly offset by adjustments including $56.4 million of stock-based compensation expense.

BE Posts Strong Cash Generation

Cash flow from operating activities was $226.4 million against cash used in operations of $213.1 million in the prior-year quarter. The improvement accompanied higher earnings and a $211.7 million increase in deferred revenues and customer deposits during the quarter.

Capital expenditures totaled $51.6 million. Cash, cash equivalents and restricted cash ended the quarter at $2.69 billion, up from $2.52 billion at the beginning of the period.

Bloom Energy's Balance Sheet Supports Expansion

As of June 30, 2026, Bloom Energy had $2.67 billion in cash and cash equivalents. Total current assets were $4.59 billion, while current liabilities stood at $1.12 billion.

Total recourse debt was about $2.48 billion, including $2.47 billion classified as long-term. Total stockholders’ equity increased to $1.64 billion from $793 million at the end of 2025.

BE Raises 2026 Financial Outlook

Management raised 2026 revenue guidance to $3.9-$4.2 billion from the prior range of$3.4-$3.8 billion. The midpoint represents roughly 100% year-over-year growth.

Non-GAAP gross margin is now expected to be about 34%. The company projects non-GAAP operating income of $800-$900 million, up from the prior range of $600-$750 million. Bloom Energy also raised its non-GAAP earnings per share to $2.55-$2.85 per share from the prior expectation of $1.85-$2.25.

Bloom Energy’s Zacks Rank

Bloom Energy currently sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Upcoming Releases

Plug Power PLUG is expected to release second-quarter earnings on Aug. 10, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 8 cents, which indicates a year-over-year improvement of 50%.

FuelCell Energy FCEL is expected to release fiscal third-quarter earnings on Sept.8, 2026.  The Zacks Consensus Estimate for the quarter is pegged at a loss of 8 cents, which implies year-over-year growth of 58.95%.

Gevo GEVO is expected to release second-quarter earnings on Aug. 6, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 2 cents, which indicates a year-over-year decline of 300%.

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