Bloom Energy Stock Sinks Despite Record Revenue and a Stellar Outlook. Is It Time to Buy?

Bloom Energy, a company that provides clean, reliable power to data centers, reported record revenue and a stellar outlook for the year, but its stock price has plummeted. The company's solid-oxide fuel cell servers convert natural gas into electricity on-site, addressing the need for quick, reliable power in AI data centers. In the third quarter, Bloom Energy's revenue surged 138% year over year to a record $1.2 billion, with product sales reaching $1 billion in a single quarter for the first time.

Adjusted operating margin jumped to 23.1% from 8.9%. The company's Chief Financial Officer, Simon Edwards, stated that operating income in this quarter surpassed what the company earned in all of 2025. Management has raised its full-year revenue outlook three times this year, expecting revenue of $4.5 billion for 2026, indicating a 122% growth.

However, the stock has dropped nearly 12% as of Friday noon, despite these impressive numbers. The only possible concern is the company's negative free cash flow of $181 million in Q3, which can be attributed to the need to scale up capacity due to exploding demand. Data centers are built in phases, and Bloom Energy is ready with servers at each phase, ensuring data center operators don't have to wait.

The company's potential for growth is clear, as evidenced by its recent expansion of a financing deal with Brookfield Asset Management from $5 billion to $25 billion. With Nvidia CEO Jensen Huang emphasizing the high costs and delays associated with building data centers, Bloom Energy's ability to provide power where it is needed, when it is needed, clean, and always on, positions it for continued success.