Bloom Energy Corporation

Bloom reported Q3 2026 revenue of $1.24 billion, up 138% year over year and 16% sequentially. Product revenue was $1.07 billion, up 179% year over year and 15% sequentially; service revenue was $67.6 million, up 15%; and installation revenue was $84.9 million, up 29%. Total gross margin was 34.5%, versus 28.7% in 2024 and 30.3% in 2025, while product gross margin was 38.4% (up 250 basis points year over year) and services margin was 21.4% (up 700 basis points year over year). Operating income was $286 million, up over 500% year over year, adjusted EBITDA was $299 million, and non-GAAP diluted EPS was $0.94 versus $0.15 a year ago; GAAP diluted EPS was $0.78 versus a loss of $0.10 a year ago. Year to date, revenue was $3.05 billion and capital expenditures were $231 million. Full-year 2026 guidance was raised to revenue of $4.4 billion to $4.6 billion, non-GAAP gross margin of approximately 34%, non-GAAP operating income of $960 million to $1.03 billion, and non-GAAP diluted EPS of $3.10 to $3.40.

K. R. Sridhar framed the quarter as evidence that on-site power is becoming a broader architectural shift in the power industry, driven by AI, grid constraints, reliability needs, and customer demand for faster deployment. He repeatedly stressed that Bloom is moving beyond a niche and that the company is preparing for demand beyond its current 5-gigawatt milestone, but he would not give a timing for further capacity expansion. His tone was highly confident and expansive, with strong emphasis on Bloom as a platform for multiple markets and technologies, including CCS, CHP, utility-front-of-the-meter deployments, and 800V DC.

Simon Edwards focused on operating leverage and cash discipline. He highlighted that operating margin expanded to 23.1% from 8.9% a year ago, operating expenses were $141 million, and the company is funding growth internally while maintaining $2.5 billion of cash. He said cash flow from operations was a use of $27 million in the quarter because working capital rose with inventory, contract assets, and receivables, while free cash flow was a use of $181 million in the quarter and positive $42 million year to date. He also noted $153 million of capital expenditures in the quarter and said the company remains self-funding and expects to be free cash flow positive over time.

Analysts focused on capacity expansion, gross margin durability, free cash flow, utility opportunities, and carbon capture. Management said the Fremont footprint expansion is a response to long-term demand, but Bloom will add capacity gradually rather than in a step function, and it is not providing a timeline. On gross margin, Simon said pricing remains strong and product cost reductions are flowing through, but near-term margin can be affected by new production lines and expedited deliveries. On utilities and CCS, KR said utilities increasingly see Bloom as a distribution asset, while customers are showing strong interest in carbon capture-ready systems and may accept a 10% to 15% cost increase for zero-carbon power.