Bloom Energy Stock Jumps 10% After Earnings

Bloom Energy’s fuel cells could become a solution to the artificial intelligence industry’s soaring demand for electricity. (Courtesy Bloom Energy)

Key Points

• Bloom Energy’s stock soared after reporting third-quarter adjusted earnings of 15 cents a share, exceeding expectations.
• The company’s revenue reached $519 million, surpassing the anticipated $428 million. GAAP results showed a loss of 10 cents a share.
• Bloom Energy is viewed as a solution for AI data centers’ power demands, with its stock up over 350% in 2025.

Bloom Energy stock jumped 10% after the market closed on Tuesday as the company reported third quarter financials that showed it eked out a profit on adjusted earnings, even though it lost money after accounting for items like employee stock-compensation.

Bloom also said it expected to beat its prior financial guidance for 2025, without going into details.

“Based on what we see today, we expect 2025 to be better than our previously stated annual guidance on our financial metrics,” said CEO KR Sridhar on the earnings call.

The fuel cell company lost 10 cents a share under standard accounting metrics, but posted adjusted earnings of 15 cents a share, which beat analysts’ expectations for 10 cents. Its revenue of $519 million outpaced expectations for $428 million.

The company said it’s expanding its capacity to be able to produce 2 gigawatts worth of fuel cells by the end of 2026, enough to quadruple its annual revenue from 2025 levels.

Bloom has been one of the best-performing stocks of 2025, jumping more than 350% on expectations it will play a role in providing power for AI data centers.

In the past year, it has gone from a volatile stock tied to the clean energy industry to an AI darling. Its fuel cells are seen as a solution to AI’s soaring demand for power, because they can be deployed off the grid and quickly ramp up electricity generation. The company has signed deals with Oracle , Brookfield Asset Management , and utility AEP.

Bullish investors say the company can take market share from natural gas turbines, a $100 billion annual market.

“We’ve got an acute electricity shortage,” said Paul Wick, chief investment officer of Seligman Investments, part of Columbia Threadneedle, which is Bloom’s largest institutional shareholder. “Gas turbines are sold out through 2029. Nuclear is going to take forever to get built and turn into power. And here you have Bloom, which can turn around and deploy fuel cells in a modular manner in three months.”

But Bloom’s stock embeds enormous growth ahead, well beyond the company’s current production capacity. It’s trading at 110 times its expected 2026 earnings per share, a much higher multiple than proven AI darlings like Nvidia .

As of the latest publicly available data, 16% of its shares had been borrowed by short sellers, a significant portion that adds to the stock’s potential volatility around big events like earnings.

Write to Avi Salzman at avi.salzman@barrons.com