Bloom Energy's (BE) surges after a massive earnings beat

Bloom Energy  jumped 12% post market to $255 on Tuesday, with results that beat estimates by a mile. Riding the energy shortage for data centers, Bloom, the maker of solid oxide fuel cells,  grew revenue 130% to $751Mn, YoY, beating estimates of $539Mn by 40%! Wow! The earnings beat was even wider 44 cents to a consensus of 3 cents! Clearly firing on all cylinders and then some!

Bloom’s biggest advantage is providing energy independent of the grid - it is local, clean and it fills a big hole right now as hyperscalers grab every energy source they can lay their hands on.

‍Will this shortage continue?

Bloom certainly believes so, increasing 2026 guidance to $3.4Bn to $3.8Bn, about 12% higher than its previous forecast of $3.1Bn to $3.3Bn, numbers that suggest that this ride is clearly in its early stages. It also expects earnings to jump to $1.85 to $2.25 per share for 2026, another 50% jump from previous estimates.

CEO KR Sridhar confidently stated. “We at Bloom are ushering in the era of digital power for the digital age. Bloom is rapidly becoming the standard and ‘go-to choice’ for on-site power.

Bloom’s competitive advantages

1. It relies on natural gas, which the US has plenty of. It is also fuel-flexible and can reliably run on biogas, or hydrogen, with the added flexibility of being modular, thus scaling very easily.  
2. AI’ biggest bottleneck is energy, and Bloom can easily fill this gap for the next several years as it doesn’t require the grid, which at last estimates was overflowing with bookings beyond three to five years in several states.
3. A survey by Bloom Energy of 44 hyperscaler and colocation developers found that availability of power was the number one consideration for new site selection, with 84% of respondents placing that in the top 3 with an average rating of 7.8 out of 10.  
4. Bloom has already proven that it can quickly establish data center power solutions in a rapid manner, completing shipments to Oracle Cloud Infrastructure in just 55 days of its 90-day delivery request. 
5. Perhaps Bloom’s biggest competitive advantage is its ability to enable hyperscalers and other customers’ rapid deployment of GPUs, which if unused or delayed depreciate easily and deprives users of compute and revenue - a race, which is fairly intense right now, and extremely dependent on getting to market first.

It has an order backlog of $20Bn with $6Bn in product backlog and $14Bn in service backlog, ensuring solid revenue growth for the next three to five years.

I’ve owned it for a year, having bought it around $50 - is it a buy, hold or a sell?

The valuation has definitely got stretched and even with revenue growing at a 50% clip, Bloom sells for more than 20x 2026 revenue. Should it meet estimates, it could get over $8Bn in 2028 revenues, and perhaps quote 12x sales conservatively or at a market cap of $96Bn - about 50% higher than its current market cap of $65Bn. Based on these multiple I would rate it a hold, but given the massive backlog it might still be worth buying on declines. I would wait for hyperscaler capex projections and then take a call. Right now I continue to hold.