Key Takeaways:
Bloom Energy shares rose more than 10 percent pre-market Friday after record Q2 revenue of $1.07 billion and a Mizuho upgrade.
"Bloom is now a standard for AI onsite power," CEO K.R. Sridhar said in the earnings release.
The company reported Q2 FY2026 revenue of $1.07 billion, up 165.5 percent year over year, with non-GAAP EPS of $0.78 versus the $0.4066 consensus. Product revenue jumped 215.4 percent, driven by hyperscalers, neoclouds, and AI data center operators. Management raised full-year 2026 revenue guidance to $3.9 billion to $4.2 billion and non-GAAP EPS to $2.55 to $2.85.
Mizuho lifted its rating to Outperform from Neutral with a price target of $242, down from $285, citing stronger-than-expected execution, accelerating margin expansion, and operating leverage materializing earlier than modeled. The firm also flagged Bloom's "time-to-power advantage," more than $27 billion of financing capacity, confirmation from all major U.S. hyperscalers, and a backlog growing faster than revenue.
The stock closed at $205.88 on Thursday, up 26 percent, and remains up 136 percent year to date despite a sharp drawdown over the past month. The surge follows a volatile stretch in which the stock fell 40.5 percent in a month after a short-seller report accused the company of hiding Chinese supplier reliance, triggering a Rosen Law class-action inquiry. Morningstar raised Bloom's fair value 15 percent in April after the company locked in a 2.8-gigawatt Oracle deal for AI data center power.
FuelCell Energy shares rose 28 percent to $23.06 on Thursday in a sympathy rally, while Plug Power gained 9 percent to $2.07. The Global X Hydrogen ETF climbed 10 percent to $39.96, with Bloom Energy representing 15.5 percent of net assets. The fuel-cell complex has been among the most volatile corners of the AI infrastructure trade, with peers Vertiv and GE Vernova delivering steadier price action.
Bloom Energy trades at a trailing twelve-month P/E of 226.32, a valuation that leaves no cushion if hyperscaler orders slip. Wall Street analysts still peg fair value at $286.20, implying 74.8 percent upside from Thursday's close. The stock carries a beta of 3.7, and insiders have logged 27 recent transactions with net direction selling. Retail sentiment on Reddit has also turned sharply bearish, with the proprietary sentiment score falling from 78 in early July to 18 by July 22.
The next event to watch is whether the Brookfield joint venture converts backlog into new hyperscaler contracts and whether the class-action filing gains traction. With management guiding 2026 revenue to nearly double, the fuel-cell maker's ability to execute on its AI data center pipeline will determine whether the current rally holds or fades.
This article is for informational purposes only and does not constitute investment advice.
