TLDR
- Bloom Energy (BE) stock rose 2.5% in pre-market trading Friday after an 8.7% drop on Thursday.
- Q3 non-GAAP EPS was $0.94 versus the $0.69 estimate, and revenue of $1.24 billion rose 138% year over year.
- The company raised 2026 guidance to $3.10 to $3.40 in EPS and $4.4 billion to $4.6 billion in revenue.
- Record capital spending pushed net cash flow to negative $180 million, which drove the selloff.
- Fuel cell peers that fell Thursday are stabilizing, and the S&P 500 and Nasdaq are slightly higher pre-market.
Bloom Energy (BE) stock rose 2.5% in pre-market trading on Friday. That came after an 8.7% drop in Thursdayās regular session.
The stock kept sliding after the bell once the third-quarter report landed. One report put the after-hours decline at more than 3%.
Bloom Energy reported non-GAAP earnings of $0.94 a share. Analysts had expected $0.69.
Revenue came in at $1.24 billion, up 138% from a year ago. The estimate was roughly $1.06 billion to $1.07 billion.
So why the selloff? Cash flow, mostly.
Why Investors Hit Sell
Bloom posted negative net cash flow of about $180 million for the quarter. Capital spending was the highest the company has ever reported.
The money is going into factory expansion to work through record backlogs. The focus is solid-oxide fuel cell systems for large AI data centers.
Valuation played a part too. The stock carried a premium price, which left little room for anything short of a major surprise.
Oracleās Project Jupiter campus in New Mexico is one of those data center projects. Bloom is its primary power source, and the results did not change that.
Guidance Goes Up
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 in mind.
Gross margin is projected at 34%, which matches market forecasts. So the profit outlook rose without a margin surprise.
CEO KR Sridhar said the world is moving from centralized power to āfirm, distributed onsite generation.ā 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. Not a bad line to have in your back pocket after a rough day.
The broader market had a tough Thursday. The S&P 500 fell 1.21% to 7,663.43, the Nasdaq dropped 2.6%, and Oracle (ORCL) lost 2.78%.
Bloomās fuel cell peers also fell 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.
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