The artificial intelligence data center build-out faces a massive bottleneck: the power grid. Hyperscalers are turning everywhere to secure reliable, cleaner-burning electricity. However, securing direct hookup to the power grid can take up to seven years.
As data centers’ energy needs continue to grow, Bloom Energy (BE +9.05%), a power equipment provider, has benefited from this unprecedented demand. The company raked in $1.24 billion in revenue in the third quarter, its second consecutive billion-dollar quarter, and the company expects revenue of up to $1.55 billion in the fourth quarter.
Bloom Energy is seeing staggering demand for its equipment, and now it must deliver on its landmark agreements. Here’s what the company must do to deliver for investors in Q4.
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Here’s what Bloom Energy must do to deliver on Q4 earnings
Because grid interconnection times are so long, Bloom’s fuel cell technology, which runs on natural gas and can be delivered to site in a few short months, has seen incredible demand. For hyperscale data centers, the need for power is real, and they are ready to take delivery as soon as Bloom Energy can ship cells.
Bloom Energy has had a banner year. The company surpassed $1 billion in quarterly revenue for the first time in the second quarter. In Q3, revenue grew another 16% sequentially and 138% year over year. However, operating cash was an outflow of $27.1 million in the quarter, against an inflow of $226.4 million in the second quarter, while capital spending rose to $153.5 million from $51.6 million.
During its Q3 earnings call, Bloom Energy announced it was raising its full-year revenue guidance once again, to between $4.4 billion and $4.6 billion, up from its prior range of $3.9 billion to $4.2 billion. This updated guidance implies Q4 revenue of $1.35 billion to $1.55 billion. Meanwhile, full-year gross margins are projected to be around 34%.
BE – Bloom Energy
$214.01+$17.76 (+9.05%)
NYSE · As of 4:00 PM ET 11/03/26
Heading into Q4, Bloom expects to maintain this momentum as the company executes on manufacturing and delivering its solid-oxide fuel cell systems (Bloom Energy Servers) for data-center-related customers, including Oracle, Nebius, data center developer Brookfield Asset Management, and utility provider American Electric Power.
For Bloom Energy, meeting this massive demand is a big undertaking, and management is stepping up to the challenge. During its earnings call with analysts, CEO KR Sridhar said he doesn’t believe Bloom itself will be a bottleneck for hardware assembly, and the company noted no electronic or component shortages that will affect its 2026 production. Given the backdrop, I’m optimistic Bloom can deliver another strong quarter for investors.
Bloom Energy is expanding to meet booming demand
To meet growing demand for power, Bloom Energy is expanding its manufacturing capacity, with a longer-term goal of manufacturing 5-plus gigawatts (GW) of its solid-oxide fuel cells annually. To do so, Bloom signed a lease in August for a 158,000-square-foot manufacturing and warehouse facility in Fremont, California.
The story surrounding Bloom Energy stock has transformed from that of a clean-technology energy company to that of a crucial infrastructure provider for data centers that need power quickly. As the company sees historic demand for its equipment, it should continue to benefit in the coming years as more data centers come online while the power grid slowly catches up.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
