Bloom Energy Stock: Buy, Sell, or Hold?

Lofty expectations have hung high over Bloom Energy (NYSE: BE), making its first-quarter 2026 earnings results on April 28 fuel to send the stock price into a breakout or a slump.

The company reported earnings that sent shares soaring the next day.

The stock had already skyrocketed in 2026 before the report, so it's a good time to stop, catch a breather, and decide on what to do next when considering Bloom Energy as an investment.

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A strong start to the year

Bloom fired on all cylinders with its Q1 results. It reported adjusted earnings per share of $0.44, while analysts expected $0.12. It also reported revenue of $751 million, handily beating expectations of $539 million. On top of all that, it raised its 2026 revenue targets to a range of $3.4 billion to $3.8 billion, up from $3.1 billion to $3.3 billion.

It also showed improvements in profitability, reporting a net profit of $70.6 million compared to a net loss of $23.8 million in Q1 2025. While the recent report covers just one quarter, the company's management believes its recent results validate its business strategy.

"For over 25 years, we built this company around the conviction that clean, reliable, affordable on-site power would become essential to a digital world. The market is now validating that vision at scale, and AI power demand is simply accelerating it," CEO K.R. Sridhar said in the company's Q1 2026 earnings call.

Why the business model is working

Building out energy infrastructure doesn't happen with the snap of a finger; it takes time for planning, permits, and construction to fall into place. That's where Bloom offers a cost-effective solution to meet energy needs faster.

With its solid oxide fuel cells, the energy company can provide consistent power, and its energy servers can be up and running in as little as 90 days. Bloom's offerings can also scale with a company's needs, offering more flexibility. It's winning over some big-name clients with its approach, including Oracle, a software and cloud company planning rapid data center expansion. In July 2025, Bloom announced a collaboration to provide power to select Oracle data centers, and it announced a broad expansion of that partnership in April.

Having Oracle is a big win for the company in terms of legitimacy, but management was also sure to note in its earnings call that it wasn't solely reliant on just one customer. "Oracle is rightfully getting headline attention today. But well more than half of our current data center backlog comes from other hyperscalers, neo clouds, and colocation providers," Sridhar said.

The verdict on Bloom Energy

Bloom has been flying high over the last year and has a lot of momentum after this recent report. Still, it's a company that should be considered as a long-term investment for more aggressive investors. Its forward price-to-earnings (P/E) ratio of 158.7 is enough to send value investors running away, as earnings expectations are sky-high. As a point of comparison for valuations, Nvidia's forward P/E ratio is 26.2.

Also, Bloom's beta is 3.2, which means its stock is three times as volatile as the broader market. That makes this an ideal company for a dollar-cost averaging (DCA) plan. Instead of investing everything at once, you keep buying a set dollar amount or share amount at predetermined times. That way, you don't have to worry as much about buying at a peak and feeling pressure to sell if the stock price significantly drops.

Bloom is still worth considering as an investment, but a DCA plan can help whenever there's an eventual pullback, given that the stock price has already run up so much in 2026.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Nvidia, and Oracle. The Motley Fool has a disclosure policy.