Bloom Energy Raised Its 2026 Forecast for the Third Time. Is the Stock a Buy More Than a Third Below Its Record?

On October 22, fuel cell manufacturer Bloom Energy disclosed strong third-quarter results and raised its 2026 revenue forecast for the third time this year. Despite this positive news, the stock price fell on the day, closing at $217.77, around 37% below its all-time high of $345.85. The company's revenue for Q3 reached a record $1.24 billion, a 138% increase year-over-year.

Bloom Energy's 2026 revenue forecast now ranges from $4.4 billion to $4.6 billion, a significant increase from the July range of $3.9 billion to $4.2 billion. In 2025, the company generated $2.02 billion in revenue, and in the first three months of 2026, revenue was $751 million, climbing to $1.24 billion by the third quarter. The latest forecast suggests fourth-quarter revenue between $1.35 billion and $1.55 billion.

Adjusted operating margins expanded to 23.1% of revenue, up from 8.9% a year earlier, and adjusted earnings per share climbed sixfold to $0.94. The full-year profit forecast also increased, now ranging from $3.10 to $3.40 per share.

However, the earnings report revealed a cash flow challenge. Bloom Energy's operating cash flow fell to $27 million in Q3, compared to $226 million in Q2. Capital expenditures rose to $153 million, resulting in negative free cash flow of $181 million. The main cause was a significant increase in contract assets, which more than doubled from $365 million by June to $793 million by the end of September.

Despite the high valuation, the stock's price appears more reasonable when compared to the latest earnings forecast. The stock trades at roughly 44 times earnings based on next year's expected earnings, a significant improvement from the 170 times earnings price seen in June. However, investors should closely monitor the conversion of contract assets into cash before making aggressive purchases.