Bloom Energy Stock Slides 11% Even After Revenue Soars 138% and Fuel Cell Maker Doubles Growth Forecast

NEW YORK — Bloom Energy shares fell nearly 11% in early trading Friday. The fuel cell maker reported record third-quarter results and sharply raised its full-year forecast, but investors focused on its high valuation and a broad selloff in AI-related stocks.

The stock fell $23.37 to $194.40, adding to an 8.7% drop on Thursday before results were released. The shares are still up about 97% over the past year, but well below their 52-week high of $351.28.

San Jose, California-based Bloom reported adjusted earnings of 94 cents per share, up from 15 cents a year earlier and above the analyst consensus of 69 cents. Revenue rose 138% to $1.24 billion from $519 million a year earlier, beating forecasts of about $1.06 billion.

AI power demand drives growth

Bloom makes solid oxide fuel cells that produce electricity on site from natural gas or hydrogen. Demand has surged as data center developers look for power faster than utilities can connect them to the grid.

Product revenue topped $1 billion in a single quarter for the first time, up 179% from a year earlier. Gross margin rose to 34.5% from 30.4%.

Operating income rose to $285.7 million from $46.2 million.

"Operating income in this quarter alone exceeded operating income for all of last year," Chief Financial Officer Simon Edwards said on a call with analysts.

CEO KR Sridhar said "we are just getting started."

Guidance raised sharply

Bloom raised its 2026 outlook:

Revenue of $4.4 billion to $4.6 billion. The midpoint implies about 122% growth from $2 billion in 2025. Bloom had previously forecast about 60% growth. Earnings of $3.10 to $3.40 per share, above the analyst consensus of $2.94. Operating income of $960 million to $1.03 billion.

The company said it is approaching 5 gigawatts of annual production capacity and plans to expand further.

Why shares fell

The decline suggests investors had expected even more. Bloom's shares had climbed ahead of the report before dropping 8.7% on Thursday. They fell another 5% after hours once results came out.

Bloom trades at more than 200 times trailing earnings, a valuation that leaves little room for error. Its shares also fell after second-quarter results, even though that quarter set a revenue record at the time.

Some investors flagged cash flow concerns. Operating cash flow was negative in the third quarter, though positive for the year so far. Capital spending reached $231 million for the year to date as the company expands manufacturing.

BMO Capital Markets raised its price target to $260 from $227 but kept a rating equivalent to hold.

AI spending jitters

The broader market added to the pressure. The Nasdaq had its worst day since June on Thursday as investors worried about how large technology companies will pay for their AI buildouts. Meta Platforms fell sharply after signaling heavy capital spending, and chipmakers sold off.

Stocks tied to AI infrastructure, including power suppliers and data center contractors, were among the biggest losers. Peers FuelCell Energy and Plug Power also fell.

For Bloom, the AI boom has been transformative. Revenue has roughly quadrupled since 2021, when it was about $1 billion, and the company has signed large supply agreements with data center operators and utilities.

Bloom says its systems can be installed in months, far faster than new grid connections, which can take years in many parts of the U.S.

Still, Friday's move showed how volatile the stock has become. With a market value of about $57 billion, Bloom now trades heavily on investors' views about how long data center spending will last.