Bloom Energy Corporation
BE · NYSE
Next quarter
Reports Oct 27, 2026.
Consensus is $0.57 EPS for Sep 2026 across 4 estimates, ranging $0.49 to $0.69.
BE Jun 2026
- 165.22%
- -1.85%
- $0.23
- $0.61
- —
- —
Highlights
- Record revenue: Second-quarter revenue reached $1.065 billion, up 165.5% year over year and 41.8% from $751.1 million in Q1, exceeding $1 billion for the first time.
- AI-led product demand: Product revenue rose 215.4% year over year to $935.4 million, driven by a large AI infrastructure deployment and projects executed through Bloom’s Brookfield joint ventures.
- Large EPS beat: Reported diluted EPS was $0.61, versus consensus of $0.23, a 165.22% surprise; GAAP diluted EPS in the filing was $0.62, compared with a $0.18 loss in Q2 2025 and $0.23 in Q1 2026.
- Profitability inflected: GAAP operating income was $182.2 million, versus a $3.5 million loss a year ago and $72.2 million in Q1; operating margin expanded to 17.1% from 9.6% sequentially and negative 0.9% year over year.
- Gross margin expanded: GAAP gross margin increased to 33.4% from 30.0% in Q1 and 26.7% a year ago; non-GAAP gross margin was 34.3%, helped by manufacturing efficiencies and a $37.4 million tariff recovery.
- Cash generation turned positive: Operating cash flow was $226.4 million in Q2, versus $73.6 million in Q1 and negative $213.1 million a year ago; first-half operating cash flow reached $300.0 million.
- Guidance raised: Full-year 2026 revenue guidance increased to $3.9 billion-$4.2 billion, with approximately 34% non-GAAP gross margin, $800 million-$900 million of non-GAAP operating income and $2.55-$2.85 of non-GAAP EPS.
- AI customer validation: Management said all major U.S. hyperscalers and more than a dozen U.S. neoclouds, AI labs and colocation operators have approved Bloom’s power solutions for AI factories.
- Execution risks remain: Two customers represented approximately 44% and 21% of Q2 revenue, while a specific product-warranty reserve of $58.3 million contributed to total accrued warranty liabilities of $77.8 million at June 30.
Analysis
Bloom’s second quarter was a sharp acceleration in scale, profitability and cash generation, centered on power demand from AI infrastructure. Revenue of $1.065 billion rose 165.5% from $401.2 million a year ago and 41.8% from $751.1 million in Q1, while reported diluted EPS of $0.61 exceeded the $0.23 consensus estimate by 165.22%. GAAP operating income reached $182.2 million, compared with a $3.5 million loss in Q2 2025 and $72.2 million in the prior quarter. Net income attributable to common stockholders was $196.3 million, versus a $42.6 million loss a year ago and $70.7 million in Q1.
The main driver was product revenue, up 215.4% year over year to $935.4 million, reflecting a large AI infrastructure deployment and Brookfield-related projects. Gross margin expanded to 33.4% from 26.7% a year ago, aided by manufacturing improvements and a $37.4 million tariff recovery, although operating expenses rose 56.7% year over year to $173.3 million and warranty costs increased. Operating cash flow was $226.4 million, lifting first-half cash flow to $300.0 million. Bloom raised full-year revenue guidance to $3.9 billion-$4.2 billion and non-GAAP EPS guidance to $2.55-$2.85, but customer concentration, warranty exposure, tariffs and execution at higher volumes remain important variables.
AI power demand
Bloom framed the quarter as evidence that AI data-center demand is translating into deployments rather than only pipeline activity. Product revenue increased 215.4% year over year to $935.4 million and accounted for nearly 88% of total revenue. The company attributed the increase to a significant deployment for a large AI infrastructure customer and multiple projects executed through its Brookfield joint ventures.
- Customer validation: Management said 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’s power solutions for AI factories.
- Geographic mix: The U.S. represented 90% of revenue in both the quarter and first half, up from 59% and 58%, respectively, in the comparable 2025 periods.
- Concentration: Two customers contributed approximately 44% and 21% of Q2 revenue, while one non-related-party customer represented approximately 73% of first-half revenue.
Profitability inflection
The revenue step-up produced a much larger improvement in earnings than in the prior quarter. GAAP gross profit was $355.6 million, up from $225.5 million in Q1 and $107.1 million a year ago. Gross margin reached 33.4%, while non-GAAP gross margin was 34.3%, up from 31.5% in Q1 and 28.2% in Q2 2025.
- Product economics: Product gross margin was 36.5%, compared with 34.3% in Q1 and 33.0% a year ago. Lower material, labor and overhead costs from manufacturing improvements and automation helped, as did a $37.4 million recovery of previously paid tariffs.
- Operating leverage: GAAP operating income increased to $182.2 million from $72.2 million in Q1 and a $3.5 million loss a year ago, despite operating expenses rising 56.7% year over year to $173.3 million.
- Adjustments: Non-GAAP operating income was $239.6 million, including $56.4 million of stock-based compensation, $0.8 million of restructuring and $0.2 million of other adjustments.
Cash and capacity
Cash conversion improved materially alongside reported earnings. Operating cash flow was $226.4 million in Q2, up from $73.6 million in Q1 and a use of $213.1 million in Q2 2025. The quarter benefited from $211.7 million of additional deferred revenue and customer deposits, although growth also consumed working capital through contract assets, receivables, inventory and prepaid assets.
- First-half cash flow: Operating cash flow was $300.0 million in the first six months, versus negative $323.8 million in the prior-year period.
- Liquidity: Cash, cash equivalents and restricted cash totaled $2.689 billion at June 30, including $2.667 billion of unrestricted cash and cash equivalents.
- Investment: Capital expenditures were $51.6 million in Q2 and $77.8 million year to date. Bloom said it expects continued investment in production capacity in Fremont, California, and Delmarva, Delaware.
- Working capital: Inventory increased to $758.2 million from $643.3 million at year-end, while contract assets rose to $428.3 million and customer deposits to $360.6 million.
Raised 2026 outlook
Bloom raised its full-year outlook after the record quarter, implying that management expects the elevated deployment pace and improved margin profile to continue. The guidance increase also shifts the focus from whether demand exists to how consistently Bloom can manufacture, install and collect on larger projects.
- Revenue: Full-year revenue guidance is $3.9 billion-$4.2 billion, representing 100% year-over-year growth at the midpoint.
- Margins and earnings: Bloom expects approximately 34% non-GAAP gross margin, $800 million-$900 million of non-GAAP operating income and $2.55-$2.85 of non-GAAP EPS.
- Execution model: Bloom is moving toward a consult-only installation model for large-load sites, using certified third-party EPC installers and potentially reducing the amount of installation revenue and cost recognized by Bloom.
Warrant and balance sheet
The Oracle relationship created a substantial equity-linked accounting item during the quarter. Oracle cashlessly exercised its warrant in May, and Bloom issued 1.905 million shares plus 248,798 incremental shares to encourage net settlement. The warrant’s aggregate fair value, including the incremental shares, was $324.4 million.
- Revenue impact: Bloom recorded $311.0 million in additional paid-in capital during Q2, with $306.5 million recorded as current and long-term customer consideration assets and $5.0 million recognized as a reduction of revenue.
- Debt: Recourse debt declined to $2.475 billion at June 30 from $2.614 billion at December 31, largely because holders converted approximately $147.0 million of Green Notes into equity.
- Liquidity facility: Bloom had no borrowings under its $600 million revolving credit facility, although $90 million of standby letters of credit reduced available borrowings to $510 million.
Risks at higher scale
The filing highlights several issues that become more consequential as Bloom ramps production. A specific product-warranty reserve of $58.3 million was recorded, lifting total accrued warranty and product-performance liabilities to $77.8 million from $20.0 million at year-end. Bloom also faces tariff uncertainty, data-center permitting opposition and customer concentration.
- Warranty exposure: Performance-guarantee payments were $5.4 million in Q2 and $13.8 million in the first half; remaining potential underperformance payments were approximately $468.9 million at June 30.
- Tariffs: Bloom recognized a $32.4 million tariff refund receivable at quarter-end after approximately $5.0 million of refunds had been received, but the ultimate amount and timing remain uncertain.
- Supply-chain scrutiny: A July short-seller report challenged aspects of Bloom’s raw-material sourcing; the company rejected the conclusions and said it has sufficient supply for current demand and backlog.
