Bloom Energy Corporation
BE · NYSE
Next quarter
Expected to report Feb 4, 2027 — estimated from last year’s reporting date.
Consensus is $0.96 EPS for Dec 2026 across 3 estimates, ranging $0.94 to $0.98.
BE Sep 2026
- 35.71%
- -11.24%
- $0.56
- $0.76
- —
- $1.23B
Reported results
- $1.23B
- 33.88%
- $225.45M
- 18.31%
- $248.98M
- $0.78
Highlights
- Record revenue — Q3 revenue was $1.236 billion, up 138.1% year over year and 16.0% sequentially; product revenue reached $1.074 billion, up 179.4% and 87% of the total.
- Earnings beat — The supplied consensus data shows EPS of $0.76 versus $0.56 expected, a 35.7% beat. Bloom’s release reports GAAP diluted EPS of $0.78 and non-GAAP diluted EPS of $0.94.
- Higher margins — GAAP gross margin expanded to 33.8% from 29.2% a year ago; non-GAAP gross margin was 34.5%, up 412 basis points year over year and 20 basis points sequentially.
- Operating leverage — GAAP operating income rose to $225.4 million from $7.8 million a year ago and $182.2 million in Q2; non-GAAP operating margin reached 23.1%, versus 8.9% a year ago.
- Guidance raised again — Bloom lifted 2026 revenue guidance to $4.4–$4.6 billion, non-GAAP operating income to $960 million–$1.03 billion, and non-GAAP EPS to $3.10–$3.40; it maintained gross-margin guidance of approximately 34%.
- Cash and investment — Operating cash flow was a $27.1 million use and free cash flow a $181 million use in Q3, reflecting working-capital growth and $153 million of capex. Cash ended at $2.5 billion; year-to-date operating cash flow was $272.9 million and free cash flow was positive $42 million.
- Broader opportunity — Quarterly wins included a conditional U.S. Army award through Indelible and a 700 MW carbon-capture-enabled project announced by AEP to supply Google; Bloom also said it began shipping its first units to Texas.
Analysis
Bloom’s September-quarter print combined exceptional growth with improving profitability. Revenue of $1.236 billion rose 138.1% year over year from $519.0 million and 16.0% from Q2’s $1.065 billion, led by product deliveries. The supplied consensus tracker records EPS of $0.76 against $0.56 expected, a 35.7% beat; the company release reports GAAP diluted EPS of $0.78, up from a $0.10 loss a year ago and $0.62 in Q2, and non-GAAP diluted EPS of $0.94 versus $0.15 a year ago and $0.78 in Q2.
The operating story was product-led scale and margin expansion: GAAP gross margin improved to 33.8% from 29.2% a year ago, while non-GAAP operating margin rose to 23.1% from 8.9%. Management raised full-year revenue guidance for the third time, to $4.4–$4.6 billion, citing execution and better visibility into fourth-quarter deliveries. The counterpoint is cash conversion: quarterly operating cash flow was negative $27.1 million as receivables, contract assets and inventory absorbed cash, alongside $153 million of capex. Bloom ended with $2.5 billion of cash and reported positive $272.9 million operating cash flow year to date. The quarter also featured commercial wins and expansion plans intended to support demand beyond hyperscalers.
Product-led growth
Product revenue drove nearly all of the acceleration, rising to $1.074 billion from $384.3 million a year earlier and $935.4 million in Q2. Bloom said product revenue reflects systems delivered and accepted, making it a direct measure of quarterly shipments. Installation revenue was $84.9 million, up 29% year over year and 66% sequentially, while service revenue was $67.6 million, up 15% year over year and roughly flat sequentially. Installation revenue and margin can vary with project scope and milestone timing, so those lines need not track product deliveries quarter to quarter.
Margin expansion
Growth translated into a sharp increase in earnings. GAAP gross profit was $417.1 million, with gross margin of 33.8%, compared with $151.7 million and 29.2% a year ago; non-GAAP gross margin was 34.5%, versus 30.4% a year ago and 34.3% in Q2. Product gross margin was 38.4% on a non-GAAP basis, up 250 basis points year over year and 120 sequentially. Management attributed the improvement to strong pricing and manufacturing cost reductions, partly offset by expedited deliveries, new-line ramp costs and installation mix. Non-GAAP operating income grew to $285.7 million from $46.2 million a year ago and $239.6 million in Q2, as operating expenses grew more slowly than revenue.
Raised 2026 outlook
- Revenue — Full-year guidance is now $4.4–$4.6 billion, or approximately 122% year-over-year growth at the midpoint. Management said the increase reflects Q3 results and improved visibility into fourth-quarter delivery timing; a small number of year-end deliveries will influence where results land within the range.
- Profitability — Bloom maintained non-GAAP gross-margin guidance of approximately 34%, raised non-GAAP operating income guidance to $960 million–$1.03 billion, and set non-GAAP diluted EPS guidance at $3.10–$3.40. The operating-income midpoint implies a 22% margin, versus 14% at the midpoint of the February outlook.
Cash and capacity
Q3 operating cash flow was negative $27.1 million and free cash flow was negative $181 million, despite strong reported earnings. Management tied the cash use to working capital for growth: contract assets and receivables rise when revenue is recognized before billing milestones and collection, while inventory is being built for future deliveries. Contract assets were $858.6 million at quarter-end, up from $241.2 million at December 2025; inventory rose to $927.7 million from $643.3 million. Capex was $153 million in Q3 and $231 million year to date, mainly for production capacity. Cash was $2.5 billion, and year-to-date operating cash flow and free cash flow were positive $272.9 million and $42 million, respectively. Bloom also signed a lease for about 158,400 square feet of Fremont manufacturing and warehouse space, not yet commenced at quarter-end.
Expanding customer base
Management’s commercial message was that demand for onsite power is extending beyond hyperscalers into critical infrastructure, utilities, commercial and industrial customers, and international markets. During the quarter, the U.S. Army conditionally awarded Indelible long-term leases for projects at Army installations, while AEP announced 700 MW of carbon-capture-enabled Bloom systems for a Google electricity project. Bloom also said it was shipping its first units to Texas and described utility deployments as a potential front-of-meter channel. These opportunities remain at different stages: the Army award is conditional, and management framed utility, international, carbon capture and 800V DC opportunities as growth vectors rather than current reported revenue.
