Key Highlights

  • BE shares are trading up 8.00% to $220.23, against a prior close of $203.92.
  • Q3 revenue was a record $1.24 billion, up 138%, and non-GAAP EPS was $0.94 versus a $0.71 estimate.
  • Full-year revenue guidance is $4.4 billion to $4.6 billion, raised for the third time this year.
  • Free cash flow was negative $181 million for the quarter.
  • Bernstein has a $306 target, while Wells Fargo has a $182 target.

Rebound Extends After a Post-Earnings Selloff

Bloom Energy (NYSE:BE) shares are trading up 8.00% to $220.23, extending a rebound from last Friday's post-earnings selloff as investors weigh a record third quarter against negative free cash flow and a rich valuation. A tech and AI-led market rally, with chip stocks higher after Anthropic's IPO filing, may be aiding sentiment in AI-power names. The stock fell 11.24% in the session after the report.

Shares gapped up from a $203.92 close, opened at $214.12 and traded between $211.29 and $224.16 on below-average volume. The 52-week range runs from $75.70 to $351.28.

Bloom Energy, headquartered in San Jose, California and founded in 2001 by CEO K.R. Sridhar, designs, manufactures and installs solid-oxide fuel cell systems that generate on-site electricity without combustion. Its flagship Bloom Energy Server is built from modular 325 kW blocks and runs on natural gas, biogas, hydrogen or blends, with up to 99.999% availability. It serves data center, utility, manufacturing, healthcare, retail and telecom customers.

Record Q3 Revenue of $1.24 Billion Beats Estimates

Third-quarter revenue rose 138% to a record $1.24 billion, up 16% sequentially, against an estimate near $1.1 billion. Product revenue topped $1 billion for the first time at $1.07 billion, up 179%.

Non-GAAP operating income was $286 million, a 23.1% margin versus 8.9% a year earlier, and non-GAAP EPS was $0.94 versus $0.15. Total gross margin was 34.5%, with product gross margin at 38.4% and services at 21.4%.

Guidance Is Raised for the Third Time This Year

Full-year guidance calls for revenue of $4.4 billion to $4.6 billion, about 122% growth at the midpoint, non-GAAP operating income of $960 million to $1.03 billion and non-GAAP EPS of $3.10 to $3.40. Non-GAAP gross margin is held at about 34%.

Management pointed to a U.S. Army conditional award, utility front-of-the-meter opportunities and a Fremont expansion beyond the 5 GW capacity milestone. Backlog is growing faster than revenue, with 2027 guidance to come in the fourth quarter.

Cash Flow and Valuation Split Analyst Views

Operating cash flow was a use of $27 million and free cash flow a use of $181 million for the quarter, driven by working capital growth in inventory, contract assets and receivables. Year-to-date free cash flow is positive $42 million, capex was $153 million in the quarter, and cash ended at $2.5 billion. Bloom Energy has a market cap of $65.09 billion and EPS of $1.14.

Analyst views are split, with Bernstein at $306, Wells Fargo at $182, Morningstar at a $102 fair value and Jefferies at $242 with a Hold rating. Investors are watching fourth-quarter cash generation and backlog disclosure.