TLDR
- Bloom Energy (BE) stock rose 2.5% in pre-market trading Friday after falling 8.7% on Thursday.
- Q3 non-GAAP EPS was $0.94 versus the $0.69 estimate, and revenue hit $1.24 billion, up 138% year over year.
- The company raised 2026 guidance to $3.10 to $3.40 EPS and $4.4 billion to $4.6 billion in revenue.
- Record capital spending led to negative net cash flow of about $180 million, which drove the selloff.
- Peers that fell on Thursday are stabilizing, and the S&P 500 and Nasdaq are modestly higher in pre-market trading.
Bloom Energy (BE) stock rose 2.5% in pre-market trading on Friday. That followed an 8.7% drop in the regular session on Thursday.
The stock kept sliding in after-hours trading once the third-quarter report came out. Some reports put the after-hours decline at more than 3%.
On paper, the numbers were strong. Non-GAAP earnings came in at $0.94 a share, well above the $0.69 analysts expected.
Revenue reached $1.24 billion, up 138% from a year earlier. Analysts had looked for roughly $1.06 billion to $1.07 billion.
Why Investors Sold
Cash flow was the main sore spot. Bloom reported negative net cash flow of about $180 million for the quarter.
The company posted its highest capital spending ever in the period. The money is going toward expanding factory output to work through record backlogs.
Valuation played a part too. The stock carried a premium price, which left little room for anything short of a major surprise.
Spending is focused on solid-oxide fuel cell systems for large AI data centers. That includes Oracle’s Project Jupiter campus in New Mexico.
Guidance Moves Higher
Bloom raised its 2026 earnings outlook to $3.10 to $3.40 a share. The consensus estimate was $2.71.
Full-year revenue is now expected between $4.4 billion and $4.6 billion. The top end sits above the $4.5 billion analysts had penciled in.
Gross margin is projected at 34%, matching market forecasts. So the profit outlook moved up without a margin surprise.
CEO KR Sridhar said the world is moving from centralized power to “firm, distributed onsite generation.” He added that demand that began with hyperscalers is spreading to other segments.
CFO Simon Edwards said operating profit in the quarter alone topped operating profit for all of last year. That line got plenty of attention after the report.
The wider market was weak on Thursday. The S&P 500 fell 1.21% to 7,663.43, the Nasdaq dropped 2.6%, and Oracle (ORCL) lost 2.78%.
Bloom’s fuel cell peers also fell on Thursday and are now stabilizing. On Friday, the S&P 500 is up 0.1% and the Nasdaq is up 0.5% in pre-market trading, with Bloom up 2.5%.
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