Bloom Energy Corp. shares climbed more than 10% in premarket trading Tuesday after the fuel-cell power provider reported a record-breaking second quarter, crossing $1 billion in quarterly revenue for the first time. The company also raised its full-year 2026 outlook, citing accelerating demand from artificial intelligence data centers.
The California-based company posted Q2 revenue of $1.065 billion, a 166% increase from the same period last year. Earnings per share surged to $0.78 from $0.10 in the year-ago quarter, handily beating Wall Street expectations on both the top and bottom lines.
AI infrastructure becomes a major growth engine
Management emphasized that Bloom's positioning within the AI infrastructure ecosystem is becoming an increasingly important growth driver. "The demand for Bloom Energy's solutions keeps accelerating every quarter as customers who traditionally defaulted to combustion technologies are now proactively choosing Bloom as a superior power solution," said KR Sridhar, Founder, Chairman and CEO. "Today, all the major US hyperscalers have approved Bloom. Bloom is now a standard for AI on-site power."
The company raised its 2026 revenue guidance to between $3.9 billion and $4.2 billion, implying roughly 100% growth over its 2025 revenue at the midpoint. Sridhar highlighted the accelerating trajectory: "It took Bloom 21 years to deliver its first billion-dollar year in 2022. It took us another three years to double our 2022 revenue. Now, we are guiding to double that revenue in just one year."
Data center boom supports expansion
Bloom Energy generates electricity using solid oxide fuel cells (SOFCs), which produce power through an electrochemical process rather than conventional combustion. This technology has become increasingly attractive as cloud providers, AI developers, and hyperscale data center operators search for reliable, on-site power solutions to support rapidly rising electricity demand. The company has secured several high-profile customers, including Oracle, Nebius, and Brookfield, positioning itself to benefit from the ongoing build-out of AI infrastructure. For context, the broader market has seen similar dynamics, with Nvidia stock below $200 even as analysts flag 40% upside on AI demand.
Shares remain volatile
Despite Tuesday's rally, Bloom Energy shares remain volatile. The stock has gained around 70% this year but is still down roughly 40% over the past month and has fallen 23% during the last five trading sessions. Following the latest gains, the stock was trading near $166. This volatility comes amid broader market swings, as seen in recent Dow surges on strong earnings offsetting tech weakness.
Analysts remain optimistic
Wall Street continues to see further upside for Bloom Energy as AI-related electricity demand expands. JPMorgan recently raised its price target on the stock from $267 to $346, while Susquehanna increased its target from $293 to $298. Baird expects the shares to reach $310, while the consensus analyst target currently stands at approximately $254. JPMorgan also introduced financial projections through fiscal year 2030, forecasting product deliveries of 4.1 gigawatts by that year, excluding service revenue. The brokerage said its outlook is partly supported by existing customer agreements, including the recently expanded partnership with Brookfield.
The strong earnings report also reinforced the positive view held by several market commentators. Earlier this month, CNBC host Jim Cramer recommended the stock following its recent pullback, calling it "a non-combustible way to be able to power data centers." With AI infrastructure spending continuing to gather pace and major technology companies investing heavily in expanding computing capacity, Bloom Energy appears increasingly well positioned to capitalize on one of the fastest-growing segments of the power market. Investors should also note the broader context of Man Group shares hitting a 15-year high on record AUM, highlighting the diverse opportunities in growth sectors.
This article is for informational purposes only and does not constitute financial advice.
