Why FuelCell Energy Stock Just Dropped
Key Points
FuelCell stock beat on earnings but missed on sales this morning.
Wall Street analysts don't expect the company to become profitable before 2030.
- 10 stocks we like better than FuelCell Energy ›
FuelCell Energy (NASDAQ: FCEL) stock tumbled 7.2% through 12:30 p.m. ET Monday after reporting mixed earnings for its fiscal Q1 2026.
Heading into the report, analysts weren't optimistic, forecasting FuelCell would lose $0.68 per share on sales of $42.2 million. FuelCell beat the earnings forecast with adjusted losses of only $0.52 per share, but missed badly on sales, which came in at just $30.5 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
FuelCell Q1 earnings
Not all the news was bad. $30.5 million in sales may have missed expectations, but it was still up 61% year over year. FuelCell also cut its operating loss by 20%. And its earnings, as calculated under generally accepted accounting principles (GAAP), showed an even better number than the adjusted figure noted above: a GAAP loss of only $0.49 per share -- much better than last year's Q1 loss of $1.42.
As CEO Jason Few explained: "We delivered strong revenue growth, sharpened operating discipline, and strengthened our liquidity position -- all while positioning FuelCell Energy to capture the defining opportunity of the AI era."
(Yes, you read that right. FuelCell makes hydrogen fuel cells, but Few says it's actually an artificial intelligence stock.)
Why are investors selling FuelCell stock today?
So FuelCell is growing sales nicely, and cutting its losses -- then why are investors selling?
Well, for one thing, FuelCell's backlog shrank by 11% in Q1, suggesting future sales growth might not be as strong as last quarter's. Also, losses are still losses, even when shrinking -- and FuelCell's still losing a lot of money. Most analysts polled by S&P Global Market Intelligence, in fact, think it will be 2030 before FuelCell earns its first profit.
If you're going to invest in FuelCell stock, you'll need to wait a long while for profits.
Should you buy stock in FuelCell Energy right now?
Before you buy stock in FuelCell Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FuelCell Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 9, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
