Bloom Energy Q2 Earnings Call Highlights

Bloom Energy (NYSE:BE) reported record second-quarter results for 2026, surpassing $1 billion in quarterly revenue for the first time as data-center deployments accelerated and profitability expanded. The company raised its full-year revenue and operating-income outlook, citing backlog conversion, in-year bookings and demand for on-site power from AI infrastructure customers.

Revenue for the quarter was $1.065 billion, up 166% from a year earlier and 42% sequentially, according to Chief Financial Officer Simon Edwards. Product revenue totaled $935 million, rising 215% year over year and accounting for nearly 90% of total revenue.

“This was another record quarter for Bloom, and the first time we exceeded $1 billion in quarterly revenue,” Edwards said, attributing the result to data-center deliveries and the company’s ability to convert signed demand into revenue.

Profitability and Cash Flow Improve

Bloom reported non-GAAP gross margin of 34.3%, up 604 basis points from the prior-year period. Product gross margin reached 37.2%, while services gross margin was 22%, marking the company’s fifth consecutive quarter of double-digit service margin.

Edwards said the service-margin improvement reflected fleet performance, longer stack life and scale, though maintenance timing and stack replacements can affect margins between quarters. The company expects service margins to remain above 20% over the long term.

• Operating income was $240 million, up 737% year over year.
• Operating margin was 22.5%, an increase of about 1,536 basis points.
• Adjusted EBITDA was $253 million, or about 24% of revenue.
• Non-GAAP diluted earnings per share were $0.78, while GAAP diluted EPS were $0.62.
• Cash flow from operations totaled $226 million, compared with a $213.5 million outflow improvement from the comparable period a year earlier.
• Free cash flow was $175 million, and Bloom ended the quarter with $2.7 billion in cash.

Operating expenses increased 48% while revenue rose 166%, which Edwards described as structural operating leverage tied to Bloom’s relatively fixed research, development and general-and-administrative cost base. The company expects operating expenses to continue growing more slowly than revenue as it scales.

Higher Full-Year Outlook

Bloom raised its full-year 2026 revenue outlook to a range of $3.9 billion to $4.2 billion. At the midpoint, the forecast would represent approximately 100% growth from 2025 revenue of just over $2 billion.

The company maintained its full-year non-GAAP gross-margin outlook of about 34% and increased its non-GAAP operating-income guidance to $800 million to $900 million. The midpoint of that operating-income range implies an approximately 21% margin, compared with the 14% midpoint margin in Bloom’s initial 2026 outlook.

Bloom now expects non-GAAP diluted EPS of $2.55 to $2.85 for the full year. Edwards said the outlook is based on both scheduled backlog conversion and capacity reserved for customers seeking power delivery within months.

The company no longer included a free-cash-flow metric in its supplemental presentation as an informal outlook measure. However, Edwards said Bloom expects significant operating-income-to-cash-flow conversion and characterized more than $375 million in cash flow from operations as a new baseline.

Data-Center Demand and Financing Partnerships

Founder, Chairman and Chief Executive Officer K.R. Sridhar said Bloom has expanded rapidly in the AI data-center market, where customers are seeking power availability faster than conventional grid infrastructure can provide it. He said all major U.S. hyperscalers and more than a dozen U.S. neo-cloud, AI lab and colocation data-center operators have validated and approved Bloom’s power solutions.

Sridhar declined to break out how many of those companies are already operating Bloom equipment, have orders in backlog or are in the near-term pipeline. He said the company has customers at each stage, including customers using its systems, customers that have booked orders and customers with definitive agreements.

Bloom also emphasized its financing model, under which customers may purchase equipment directly or procure power or capacity through contracts supported by third-party financing. Edwards said Industrial Development Funding’s arrangement for Nebius was a meaningful contributor during the quarter, with IDF purchasing Bloom Energy Servers for identified sites and delivery schedules.

The company highlighted Brookfield’s decision in June to expand its financing framework for Bloom projects from $5 billion to $25 billion. Sridhar said the pace at which the financing capacity is used will depend on customer uptake, while noting that Brookfield had initially committed $5 billion before increasing the framework nine months later.

Capacity, Supply Chain and Project Flexibility

Management said manufacturing capacity and supply chain availability are not currently constraints. Sridhar said Bloom is adding U.S. manufacturing capacity in “copy exact” increments ahead of committed orders and has multiple qualified suppliers across multiple countries for critical inputs.

In response to a question on scandium supply, Sridhar said the company has visibility for 25 gigawatts of deployments, is not dependent on China and believes sufficient scandium can be economically recovered to support broad power generation needs. He did not provide additional sourcing details.

Management also said its systems can be redirected among projects because of their standardized design. Edwards said Bloom’s contracts include protections for project delays, and that financiers ultimately remain obligated to take delivery of equipment from Bloom. Sridhar added that the company’s 2026 guidance does not depend on any single project, as it expects some projects to be delayed, accelerated or replaced by new demand.

Looking ahead, Sridhar said Bloom is focused on expanding on-site DC power applications, including data centers, electric-vehicle fleet charging, residential microgrids and systems that use generated heat for heating and cooling. He also pointed to the company’s carbon-capture capabilities and said Bloom aims to provide an appliance-like power solution that can be deployed broadly.

About Bloom Energy (NYSE:BE)

Bloom Energy is a clean energy technology company that designs, manufactures and deploys solid oxide fuel cell systems for on-site power generation. Its flagship product, the Bloom Energy Server, converts natural gas, biogas or hydrogen into electricity through an electrochemical reaction, offering customers a reliable, low-carbon alternative to grid power. The company also provides a suite of services that includes system installation, remote monitoring and preventative maintenance to ensure long-term performance and uptime.

Founded in 2001 by Dr.