Is Bloom Energy Corp a Buy After Its Latest Earnings Report?

Bloom Energy (NYSE:BE) reported its second-quarter financial results after the market closed on July 28. They were, in the words of CFO Simon Edwards, “the strongest in Bloom’s history.” The advanced fuel cell developer’s revenue rocketed more than 165%, crossing the $1 billion milestone, while its profitability grew exponentially.

Here’s a look at the company’s quarter and whether the hydrogen stock is a buy following the report.

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Record results

Bloom Energy reported record quarterly revenue, up over 165% to nearly $1.1 billion. Product sales led the way, jumping by more than 215% to $935.4 million. Founder and CEO KR Sridhar highlighted that, “the demand for Bloom Energy’s solutions keeps accelerating every quarter as customers who traditionally defaulted to combustion technologies are now proactively choosing Bloom as a superior power solution.” He stated that “Bloom is now a standard for AI onsite power.”

Robust demand for its advanced fuel cells drove improved margins and strong profitability. Bloom’s operating income increased by $185.7 million to $182.2 million, while its earnings per share improved from an $0.18 loss to a $0.62 per share gain. Meanwhile, its adjusted earnings were even higher at $239.6 million or $0.78 per share. Its results crushed analysts' expectations for $826 million in sales and adjusted earnings of $0.41 per share.

Accelerating momentum

Bloom Energy’s robust results and strong demand for its fuel cells drove it to boost its full-year forecast again. The company now expects full-year revenue to be in the range of $3.9 billion to $4.2 billion, representing 100% year-over-year sales growth at the mid-point. That’s an acceleration from the 80% sales growth it expected last quarter and the 60% increase it initially anticipated. The company also boosted its earnings outlook. It now expects its adjusted earnings per share to be in the range of $2.55-$2.85, up from $1.85-$2.25 last quarter. That’s well above the current analysts’ consensus forecast of $3.7 billion of revenue and $2.15 per share of adjusted earnings.

Bloom is seeing accelerating customer demand, especially from data center developers. Two notable strategic partnerships recently expanded their commitments. Brookfield Asset Management has expanded its framework with Bloom Energy for financing power projects for AI infrastructure fivefold, from $5 billion to $25 billion. Meanwhile, Oracle expanded its strategic partnership with Bloom to deploy up to 2.8 gigawatts of fuel cells to accelerate AI-infrastructure build-out. These large and expanding partnerships will support its continued growth.

Is Bloom Energy a buy after earnings?

As expected, shares of Bloom Energy are soaring after it reported earnings, rising more than 8% in early pre-market trading. Despite that, shares remain nearly 50% below their peak earlier this year due to the sell-off in AI-related names on concerns of a slowdown in spending. As Bloom’s results show, demand isn’t slowing down; it’s accelerating.

With the stock well off its high and its business booming, Bloom looks like a buy after its earnings. We’re still in the very early stages of the AI data center build-out, and Bloom has become the standard for powering these facilities when grid power isn’t readily available. It still has a very long growth runway, making it one of the most compelling ways to play the AI power boom.

Matt DiLallo has positions in Brookfield Asset Management and has the following options: short August 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool has a disclosure policy.