Bloom Energy BE is scheduled to release second-quarter 2026 results on July 28, after market close. The Zacks Consensus Estimate for earnings is currently pegged at 39 cents per share on revenues of $766.88 million.
Second-quarter earnings estimates have remained unchanged over the past 60 days. The bottom-line projection indicates a 290% jump from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 91.13%.
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BE Stock’s Earnings Surprise History
Bloom Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 185.46%.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Bloom Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BE’s Earnings ESP: Bloom Energy has an Earnings ESP of 0.00%.
Zacks Rank of BE: The company currently sports a Zacks Rank #1.
Some companies in the same industry with the right combination of the two factors for an earnings beat this season are Sempra Energy SRE, Ormat Technologies ORA and Talen Energy Corporation TLN. SRE, ORA and TLN have an Earnings ESP of +0.75%, +73.47% and +100.52%, respectively. ORA and SRE currently carry a Zacks Rank #3, and TLN holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped BE Stock’s Q2 Earnings
Bloom Energy’s second-quarter results are expected to benefit from strong demand for clean, on-site power solutions. As longer utility interconnection timelines increase the need for faster electricity access, the company’s grid-independent systems are becoming increasingly attractive. This is likely to have supported quarterly earnings.
During the second quarter, Bloom Energy expanded its partnership with Oracle to support the rapid growth of AI and cloud infrastructure. Under a master services agreement, Oracle can procure up to 2.8 gigawatts (“GW”) of Bloom Energy’s fuel cell systems, with 1.2 GW already contracted and deployments underway through next year. The systems are expected to provide reliable power for Oracle’s U.S. cloud projects, supporting rising demand for advanced computing infrastructure.
Bloom Energy’s second-quarter performance is expected to have benefited from continued product cost reductions and growing demand from AI hyperscalers and manufacturing facilities seeking reliable, on-site power solutions.
BE Stock Returns Better Than Its Industry
Return on equity (“ROE”) measures how well a company is utilizing its shareholders’ funds to generate profits. ROE compares net income with shareholders' equity.
ROE of Bloom Energy was 43.41% compared with the industry average of 7.15%.
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BE Stock’s Price Performance
BE’s shares have gained 56.3% in the past six months compared with the Zacks Alternative Energy – Other industry’s rise of 6.7%.
BE Price Performance ( Six Months)
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BE Is Trading at a Premium Valuation
Bloom Energy is currently trading at a premium valuation compared with its industry, with the forward 12-month price-to-sales (P/S) ratio at 12.2X. The industry is currently trading at 5.21X.
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Investment Thesis
Bloom Energy is well positioned to capitalize on AI-driven power demand, expanding hyperscaler partnerships and a growing backlog. Its rapid deployment capabilities and asset-light model support growth amid grid constraints, while cost reductions, disciplined spending and recurring service revenues should strengthen margins, cash flow and visibility.
Bloom Energy expects broader adoption of its Energy Server systems by utilities for grid support and dedicated on-site power. As product costs decline, the company’s solutions should become increasingly competitive across more regions, industries and customer segments. The Energy Server platform also addresses growing demand for resilient power by helping customers navigate extreme weather, aging grid infrastructure, retiring generation assets and the increasing integration of renewable energy.
Its customized on-site energy systems help customers reduce dependence on traditional grid infrastructure, supporting growth. The company also stands out as a compelling investment, supported by improving earnings forecasts. Thus, despite a premium valuation at the current levels, investors can consider adding this stock to their portfolios.
Wrapping Up
Bloom Energy is expected to deliver solid quarterly performance, supported by steady demand for its scalable energy solutions. The company’s ability to rapidly deploy customized Energy Servers provides a key competitive edge, while its combustion-free, emissions-free power generation helps customers advance their decarbonization and zero-emission goals.
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Bloom Energy Corporation (BE): Free Stock Analysis Report
Sempra (SRE): Free Stock Analysis Report
Ormat Technologies, Inc. (ORA): Free Stock Analysis Report
Talen Energy Corporation (TLN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).