Electricity generation and hydrogen production company Bloom Energy (NYSE: BE) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 57.1% year on year to $519 million. Its non-GAAP profit of $0.15 per share was 50.2% above analysts’ consensus estimates.

Is now the time to buy BE? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Bloom Energy’s third quarter results were marked by a notable acceleration in demand for its on-site power solutions, particularly from sectors driven by artificial intelligence (AI) infrastructure buildouts. Management credited the company’s robust commercial momentum to expanding customer adoption in both the AI ecosystem and traditional industrial markets. CEO K.R. Sridhar emphasized that Bloom’s modular fuel cell technology, which has seen consistent year-over-year cost reductions and performance improvements, is now competitive in new geographic and vertical markets. Notably, Sridhar cited recent wins with major telecom and semiconductor companies as evidence of Bloom’s growing reputation as a reliable power provider.

Looking forward, Bloom Energy’s outlook is shaped by continued expansion into new markets and the scaling of its manufacturing capacity. Management believes that doubling production capacity to 2 gigawatts by the end of 2026 will support up to four times current revenue, citing strong pipelines across AI, telecom, and international customers. Sridhar pointed to ongoing investments in research and development, as well as key partnerships—such as with Brookfield for AI infrastructure—as positioning Bloom to be the preferred on-site power solution globally. According to Sridhar, “Bloom will set the standard for the digital age, digital power.”

Key Insights from Management’s Remarks

Management attributed the third quarter’s outperformance to rapid AI-driven demand, successful execution in new verticals, and significant product cost reductions supporting margin gains.

• AI sector traction: Bloom secured multiple lighthouse accounts in the AI ecosystem, including hyperscalers and infrastructure funds, driving rapid adoption. The company highlighted a partnership with Oracle and a gigawatt-scale agreement with AEP for AWS data centers as major wins.
• Geographic expansion: Bloom’s technology, historically concentrated in high-cost power markets, is now being deployed in Midwest, Texas, and international cities, aided by cost reductions and improved efficiency.
• Partnership with Brookfield: The new strategic relationship with Brookfield, one of the world’s largest infrastructure investors, positions Bloom as the preferred on-site power provider for AI data centers and related facilities. This partnership also offers access to financing for Bloom-sourced projects.
• Manufacturing scale-up: Bloom is doubling its manufacturing capacity to 2 gigawatts by December 2026, ensuring it can meet the growing demand from both existing and new customers while supporting operational discipline and margin expansion.
• Commercial momentum beyond AI: Management noted accelerating demand not only from AI-related deals but also from traditional commercial and industrial segments, indicating broadening market acceptance of Bloom’s products.

Drivers of Future Performance

Bloom Energy’s guidance reflects expectations for sustained demand from AI and industrial customers, supported by increased capacity and ongoing cost reductions.

• AI demand as primary growth driver: Management expects power needs from data centers and AI buildouts to remain elevated, creating persistent demand for on-site generation and supporting revenue expansion in coming quarters.
• Capacity expansion and operational investments: The company’s plan to double its production capacity by the end of 2026 is intended to ensure Bloom is not a bottleneck for customer projects, while investments in operational talent and R&D are expected to further drive product differentiation and margin growth.
• International and policy tailwinds: Bloom is monitoring regulatory changes and global trends, such as expedited grid interconnection policies and long-term natural gas agreements, which could accelerate adoption in Europe and Asia. Management also noted rising interest in carbon capture and net-zero solutions as supportive of future growth.

Catalysts in Upcoming Quarters

Looking ahead, our analyst team will be monitoring (1) the pace at which AI and data center deals convert from pipeline to revenue, (2) execution of manufacturing expansion and associated margin trends, and (3) the rollout and impact of international partnerships, particularly in Europe and Asia. Policy developments and adoption of new fuel cell applications in carbon capture will also be important factors to track.

Bloom Energy currently trades at $129.33, up from $113.32 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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