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DATE
Oct. 22, 2026
CALL PARTICIPANTS
- Investor Relations – Michael Tierney
- Founder, Chairman, and Chief Executive Officer – K. R. Sridhar
- Chief Financial Officer – Simon Edwards
TAKEAWAYS
- Revenue — $1,235.8 million, growing 138.1% year over year driven by significant demand for on-site power solutions from hyperscalers and commercial sectors.
- Product Revenue — $1,073.6 million, increasing 179.4% and representing 87% of total revenue as quarterly system deliveries crossed 1 billion dollars for the first time.
- Non-GAAP Operating Income — $285.7 million, up from $46.2 million in the prior year, reflecting significant operating leverage in the business model.
- Non-GAAP Operating Margin — 23.1%, expanding from 8.9% in the same quarter last year as revenue growth outpaced the 26% increase in operating expenses.
- Non-GAAP Diluted EPS — $0.94, compared to $0.15 in the prior year.
- Full Year 2026 Revenue Guidance — $4.4 billion to $4.6 billion, representing approximately 122% growth at the midpoint.
- Full Year 2026 Non-GAAP Operating Income Guidance — $960 million to $1,030 million, representing a 22% operating margin at the midpoint of the range.
- Full Year 2026 Non-GAAP EPS Guidance — $3.10 to $3.40.
- Full Year 2026 Non-GAAP Gross Margin Guidance — approximately 34%, raised from the original outlook of 32% at the beginning of the year.
- Non-GAAP Gross Margin — 34.5%, up 412 basis points year over year with expansion in both product and services segments.
- Product Gross Margin — 38.4%, up 250 basis points year over year due to pricing strength and cost reduction programs.
- Quarterly Capital Expenditures — $153 million, focused on expanding production capacity within existing Fremont and Newark facilities.
- Year-to-Date Capital Expenditures — $231 million, representing a fourfold increase over the total capital spending in all of 2025.
- Cash and Cash Equivalents — $2.5 billion, maintained through self-funding operations despite increased investments in capacity and working capital.
- Installation Revenue — $84.9 million, up 29% year over year, though management noted these figures fluctuate with the timing and mix of customer projects.
- Service Revenue — $67.6 million, up 15% year over year with a service margin of 21.4% marking the second consecutive quarter above 20%.
- Adjusted EBITDA — $299.5 million, representing 24% of revenue and an expansion of 1.29 thousand basis points year over year.
- AEP/Google Project — 700 megawatts of carbon capture-enabled servers to provide near net-zero electricity, which management cited as critical to meeting decarbonization goals.
- Operational Efficiency — tenfold increase in stack production capacity while maintaining a stable headcount of 600 employees on the production line.
- Market Opportunity — $3 trillion to $6 trillion in potential global annual electricity market growth over the next decade as businesses shift toward distributed power.
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RISKS
- Edwards stated, “The timing of a small number of deliveries around year end will determine where in the range we land,” noting the dependency on customer site readiness for hitting guidance targets.
- Edwards warned that installation and product revenue do not move together quarter to quarter because installation scope varies across customers and revenue is recognized over time as work progresses.
SUMMARY
Bloom Energy Corporation (BE -8.70%) reported record third-quarter revenue of $1,235.8 million, a 138.1% year-over-year increase driven by the rapid adoption of distributed on-site power solutions by hyperscalers and commercial enterprises. Management raised its full-year 2026 guidance for revenue, operating income, and earnings per share for the third time this year, citing increased visibility into the fourth-quarter delivery pipeline and a growing customer backlog. The company reported that its solid-oxide fuel cell platform serves as a complement to a central grid facing capacity constraints and high reliability requirements for AI data centers and critical infrastructure. Capital investments are focused on scaling production capacity beyond the 5-gigawatt milestone to meet projected global demand growth.
- CEO Sridhar stated, “Fuel cell based on-site power will become a preferred choice and complement to the grid for power delivery,” noting that 1/4 of commercial and industrial facilities surveyed expect to be fully powered on-site by 2030.
- Management reported that every quarter delay in a 1-gigawatt data center translates to $10 billion of missed revenue for customers, making rapid deployment a primary value proposition.
- The company is expanding its Fremont manufacturing footprint to support future production capacity that scales with demand rather than running ahead of it.
- The 700-megawatt project with AEP and Google represents the first large-scale use of carbon capture and sequestration with Bloom servers, which management believes is a trillion dollar market opportunity.
- Management expects utility front-of-the-meter arrangements to become a significant growth channel as regulated utilities use servers to fulfill power growth demand and enhance network stability.
INDUSTRY GLOSSARY
- Bloom Energy Server: An advanced power platform that converts fuels like natural gas or hydrogen into electricity through an electrochemical process.
- CCS: Carbon capture and sequestration, a technology that captures carbon dioxide emissions from power generation for underground storage or industrial use.
- 800V DC: A high-voltage direct current power architecture designed to improve efficiency and reduce costs in data center server racks.
- Front of the meter: Power generation projects connected directly to the utility’s distribution grid rather than behind a customer’s internal electrical system.
- LCOE: Levelized Cost of Energy, a measure of the average net present cost of electricity generation for a generating plant over its lifetime.
- On-site power: Electricity generated at the location where it is consumed, providing an alternative to traditional central grid delivery.
- Hyperscalers: Large-scale technology companies that operate massive data center networks and require concentrated, high-reliability power.
Full Conference Call Transcript
Operator: Hello, everyone. Thank you for joining us. And welcome to Bloom Energy third quarter 2026 Earnings Call. After today’s prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the call over to Michael Tierney. Please go ahead.
Michael Tierney: Thank you, and good afternoon, everybody. Thank you for joining us for Bloom Energy’s third quarter 26 earnings call. To supplement this
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