Bloom Energy Q3 Revenue Up 138% YoY, EPS Swings to Profit, But Shares Tumble 7% After Hours

TradingKey - On October 22, Bloom Energy (BE) reported its third-quarter 2026 financial results, posting record quarterly revenue, margin expansion driven by rapid product revenue growth, and a year-over-year turn to net profitability. The company also announced its third full-year guidance raise of the year.

However, the company's shares fell more than 7% in after-hours trading. As of press time, the decline narrowed to 5.5%, with the stock trading at $205.8.

In the third quarter, Bloom Energy generated revenue of $1.236 billion, up 138.1% year-over-year. GAAP diluted earnings per share (EPS) was $0.78, an improvement of $0.88 from a loss per share of $0.10 in the same period last year; non-GAAP diluted EPS was $0.94, an increase of $0.79 from $0.15 in the prior-year period.

Source: TradingView

Among them, the product segment was the primary growth driver for the quarter, generating revenue of $1.074 billion, up 179.4% year-over-year, while the GAAP product gross margin rose from 35.0% to 37.9%.

The GAAP gross margin for the service segment increased from 11.6% to 17.8%. However, the installation gross margin fell from 8.9% to negative 4.8%, and the electricity segment gross margin dropped from 43.8% to 25.7%, indicating lingering divergence in profitability across business segments.

Source: BE Q3 2026 Financial Results

Revenue expansion and gross margin improvement together drove operating profit growth. GAAP gross profit for the quarter was $417 million, with a gross margin of 33.8%; non-GAAP gross margin was 34.5%, up 412 basis points year-over-year. GAAP operating expenses were $192 million, compared to $144 million in the same period last year, growing at a pace significantly lower than revenue growth.

As a result, GAAP operating profit surged to $225 million, an increase of $218 million year-over-year, with the operating margin rising from 1.5% to 18.2%; non-GAAP operating profit reached $286 million, up $239 million year-over-year, as the operating margin expanded from 8.9% to 23.1%. Adjusted EBITDA for the quarter was $299 million, compared to $59 million in the prior-year period.

GAAP net income attributable to common shareholders was $250 million, compared to a net loss of $23 million in the same period last year; non-GAAP adjusted net income was $303 million, up from $35 million in the prior-year period.

Looking ahead to the full year, the company raised its 2026 revenue guidance to between $4.4 billion and $4.6 billion, with a midpoint of $4.5 billion, representing a year-over-year growth of 122% as disclosed by the company; non-GAAP gross margin is expected to be approximately 34%, non-GAAP operating profit between $960 million and $1.03 billion, and non-GAAP EPS between $3.1 and $3.4.

CEO KR Sridhar stated that demand for reliable power is expanding from hyperscale cloud providers to a broader range of industries, driving the development of distributed, on-site power generation. CFO Simon Edwards noted that year-to-date performance and customer demand provided the confidence for the company's third outlook raise of the year, adding that the company will continue to invest prudently to build the capabilities and capacity needed for business expansion.