Bloom Energy Corporation BE

The business

Bloom Energy makes solid-oxide fuel cells (SOFCs) that convert natural gas, biogas, or hydrogen into electricity through a high-temperature electrochemical reaction at the customer's site, with no combustion and low emissions. The product is the Bloom Energy Server, a stackable on-site power unit sold outright or under a managed-services contract to data centers, hospitals, manufacturers, retailers, and telecom sites. The segment doing most of the work is the Product line: $1.53B of FY25 revenue, about 76% of the $2.02B total and up 41% from $1.09B in FY24, with Service ($228M), Installation ($206M), and Electricity ($60M) rounding out the rest. Hardware sales to AI-data-center customers are the engine; everything else is attach.

The qualitative fact the financials understate is the speed-of-deployment edge. AI buildouts are gated by interconnection queues at grid operators like PJM, ERCOT, and CAISO, where new large-load wait times run two to five years. Behind-the-meter generation skips the queue: Bloom can commission a large SOFC installation in roughly 90 days, and a data center operator earning $5M to $15M of revenue per MW per year will pay a higher per-kWh cost to avoid a multi-year wait. What changed in the last two quarters is the order book turning into delivered revenue. Q1 2026 revenue of $751M was up 130% year over year and nearly matched the record Q4 2025 ($778M), and management points to large multi-year hyperscaler commitments as the demand anchor behind the FY26 step-up. The order pipeline, not the trailing quarter, is the leading indicator that matters here.