Bloom Energy Corporation BE reported third-quarter 2026 operating earnings of 76 cents per share, beating the Zacks Consensus Estimate of 56 cents by 35.71%.
The company separately reported non-GAAP earnings of 94 cents per share compared with 15 cents in the year-ago quarter.
Total Revenues
Revenues surged 138.1% year over year to $1.236 billion, surpassing the Zacks Consensus Estimate of $1.071 billion by 15.41%. Strong product demand drove growth, with product revenues crossing $1 billion for the first time. Improved margins and higher operating income supported the company's decision to raise its full-year outlook.
Product revenues climbed 179.4% to $1.074 billion from $384.3 million in the year-ago quarter. The business contributed approximately 87% of total revenues, reflecting increased deliveries of onsite power systems.
Installation revenues increased 29% to $84.9 million from $65.8 million. Service revenues rose 15.3% to $67.6 million from $58.6 million, while Electricity revenues declined 5.2% to $9.8 million from $10.4 million.
Bloom Energy Corporation Price, Consensus and EPS Surprise
Bloom Energy Corporation price-consensus-eps-surprise-chart | Bloom Energy Corporation Quote
BE's Product Business Drives Record Growth
Product gross margin improved to 38.4%, expanding 250 basis points year over year and 120 basis points sequentially. Strong pricing and manufacturing cost reductions supported the improvement despite expenses associated with expanding production lines and accelerating customer deliveries.
Management highlighted growing demand for onsite electricity from artificial intelligence data centers, commercial facilities and critical infrastructure. Bloom Energy's customer backlog continued to expand faster than revenues, supported by increasing diversity across customers, industries and geographies.
Bloom Energy Expands Margins Sharply
Gross profit increased to $417.1 million from $151.7 million in the year-ago period. Non-GAAP gross margin improved to 34.5% from 30.4%. Service gross margin reached 21.4%, increasing 700 basis points year over year, marking the second consecutive quarter above 20%.
Highlights of BE's Q3 Release
Operating expenses increased 33.3% to $191.7 million from $143.8 million. Research and development expenses rose 31.7% to $64.1 million, while sales and marketing expenses increased 24.8% to $52.4 million. General and administrative expenses climbed 41.4% to $75.1 million.
Non-GAAP operating income surged to $285.7 million from $46.2 million, while the corresponding margin expanded to 23.1% from 8.9%.
Bloom Energy Sees Expanding Market Opportunities
Management highlighted five commercial developments supporting its growth strategy. These included a conditional U.S. Army award involving partner Indelible and a 700-megawatt carbon capture-enabled project involving AEP and Google.
Bloom Energy also reported its first shipments to Texas, expanding utility relationships and growing international interest in onsite power systems. Management expects utility-related projects, including systems deployed on distribution networks, to become an important source of future business.
BE Delivers Higher Profitability
Net income attributable to common stockholders reached $250.3 million in contrast to a loss of $23.1 million in the third quarter of 2025. Adjusted EBITDA climbed to $299.5 million from $59 million, reflecting substantially stronger operating performance.
The company continued investing in manufacturing capacity to support customer demand. Management emphasized that higher production volumes, improved utilization and ongoing cost-reduction initiatives could support its long-term margin structure.
Bloom Energy's Cash Flow and Balance Sheet
Cash flow from operating activities was negative $27 million during the quarter. Increased inventories, contract assets and receivables absorbed cash as the company supported higher delivery volumes and future customer requirements.
Capital expenditures totaled $153 million, resulting in negative free cash flow of $181 million. As of Sept. 30, 2026, cash and cash equivalents stood at $2.49 billion, while total stockholders' equity reached $1.96 billion.
BE Raises 2026 Financial Outlook
Bloom Energy raised its 2026 revenue guidance to $4.4-$4.6 billion from the previous range of $3.9-$4.2 billion. The revised midpoint represents approximately 122% year-over-year growth, supported by strong third-quarter performance and improved visibility into customer deliveries. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $4.14 billion.
Management maintained its non-GAAP gross margin forecast at approximately 34%. The company increased its non-GAAP operating income guidance in the range of $960 million to $1.03 billion from the previous band of $800-$900 million. Non-GAAP earnings guidance was also raised to $3.10-$3.40 per share from the previous projection of $2.55-$2.85.
Bloom Energy’s Zacks Rank
Bloom Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Upcoming Releases
Plug Power PLUG is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 7 cents per share, which indicates a year-over-year improvement of 41.7%.
FuelCell Energy FCEL is expected to release fiscal fourth-quarter earnings on Dec.17, 2026. The Zacks Consensus Estimate for the quarter is pegged at a loss of 28 cents per share, which implies year-over-year growth of 66.3%.
Gevo GEVO is expected to release third-quarter earnings on Nov. 9, 2026. The Zacks Consensus Estimate earnings per share for the quarter is pegged at 4 cents, which indicates a year-over-year increase of 233.3%.
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