Bloom Energy shares gained significant traction in extended trading Friday, advancing nearly 5% following the company's ambitious revenue projection for the coming year. The fuel cell manufacturer closed the regular session at $133.90 before climbing to $143.03 after hours, representing a 4.8% gain. Trading volume reached approximately 20.9 million shares, with intraday volatility pushing the stock as high as $158.29 during the main session.
The after-market movement reflects investor enthusiasm for the company's 2026 financial outlook, which calls for revenue between $3.1 billion and $3.3 billion. This forecast, disclosed in a regulatory filing, substantially exceeds the company's 2025 performance and signals management's confidence in capturing growing demand from power-hungry artificial intelligence infrastructure.
For the final quarter of 2025, Bloom reported revenue of $777.7 million, building on what the company described as a record-breaking year. Full-year 2025 revenue reached $2.02 billion, marking a robust 37.3% increase compared to the previous year. Operating income for the year climbed to $72.8 million, while cash flow from operations totaled $418.1 million, demonstrating the company's ability to convert sales into actual cash generation.
The company's product backlog, representing future sales already under contract, now stands at approximately $6 billion. This substantial order book provides visibility into future revenue streams and underscores the strong demand environment for Bloom's solid-oxide fuel cell technology.
The timing of this growth narrative proves particularly compelling as technology giants race to build out AI data center capacity. Power availability has emerged as a critical constraint for these facilities, transforming energy infrastructure from a secondary consideration into a primary bottleneck. Bloom's "Energy Server" units, which generate electricity on-site using natural gas, position the company to capitalize on this trend.
Chief Executive KR Sridhar emphasized this shift during the investor call, noting that "bring-your-own-power has shifted from a slogan to a business necessity for AI hyperscalers." This statement reflects the growing pressure on major cloud operators to secure reliable power sources for their expanding data center footprints, rather than relying solely on traditional grid infrastructure.
The company's technology offers a distributed generation solution that can be deployed closer to where power is consumed, potentially reducing transmission losses and accelerating project timelines compared to utility-scale power plants that require extensive grid interconnection processes.
Despite the positive revenue trajectory, Bloom faces margin pressure that warrants attention. Fourth-quarter gross margin narrowed to 30.8%, down from 38.3% in the same period last year. This compression reflects the challenges of scaling production rapidly while maintaining profitability. However, management has set targets for 2026 that suggest confidence in their ability to manage costs effectively.
For the upcoming year, Bloom is guiding toward a non-GAAP gross margin of approximately 32%, with projected non-GAAP operating income between $425 million and $475 million. These non-GAAP figures exclude items such as stock-based compensation and other adjustments, providing a view of underlying operational performance.
Chief Financial Officer Maciej Kurzynski highlighted progress on cost reduction initiatives, telling investors the company made headway in "reducing product cost" and "driving operating leverage" during the quarter. These efforts will be crucial as Bloom works to fulfill its growing backlog while protecting profitability.
Wall Street analysts responded positively to the company's guidance and commentary. BTIG analyst Gregory Lewis raised his price target on the stock to $165 from $145 while maintaining a buy rating. Lewis characterized demand for "prompt power" as broad-based across multiple sectors, suggesting that Bloom's available capacity and operational leverage place it in an advantageous position to benefit from the current market dynamics.
BMO Capital also adjusted its outlook, lifting its price target to $149 from $136 while retaining a market-perform rating. The firm described Bloom's guidance as "sufficiently emphatic" but cautioned that key debates persist regarding additional upside potential from current levels.
Morgan Stanley's David Arcaro pointed to the potential for a sharp acceleration in revenue growth throughout 2026, citing the possibility of new data center contracts materializing. Arcaro's analysis suggests Bloom is effectively positioning its solid-oxide fuel cell technology as a compelling alternative to conventional power generation equipment offered by established players like GE Vernova and Siemens Energy.
The competitive landscape in the distributed power generation market continues to evolve, with fuel cells gaining traction as a viable option for customers seeking reliable, low-emission power solutions. Bloom's technology differs from traditional combustion-based generators by using an electrochemical process that can achieve higher efficiency rates and lower emissions profiles.
However, the company's earnings presentation also outlined several execution risks that could impact its ability to convert backlog into recognized revenue. These challenges include potential financing obstacles for customers, supply chain constraints, construction delays, and utility interconnection bottlenecks. The complexity of integrating on-site power generation with existing grid infrastructure can create unpredictable timelines that affect project completion dates.
Tax incentives, including U.S. investment tax credits, were also mentioned as factors that could influence project economics and customer decision-making. The regulatory environment around clean energy incentives remains subject to policy changes that could affect demand patterns.
Additionally, Bloom acknowledged that a potential slowdown in AI adoption could temper data center growth rates, which would consequently impact demand for its power solutions. While current momentum in AI development appears strong, the company recognizes that its fortunes are increasingly tied to the continued expansion of this sector.
The broader market context for clean energy equipment manufacturers has shifted dramatically as technology companies become major power consumers. Traditional data centers already represented significant electricity demand, but AI training and inference workloads are pushing power requirements substantially higher. This trend has created a seller's market for companies that can deliver power generation solutions quickly and reliably.
Bloom's ability to manufacture and deploy its Energy Server platforms at scale will be critical to capturing this opportunity. The company's manufacturing capacity, supply chain relationships, and project execution capabilities will all be tested as it works through its $6 billion backlog.
Investors will be watching closely to see whether Bloom can maintain its growth trajectory while improving margins and managing the operational complexities of rapid expansion. The company's guidance suggests management believes these objectives are achievable, but execution will ultimately determine whether the ambitious 2026 targets become reality.
The stock's after-hours performance indicates initial market confidence in Bloom's strategy and outlook. However, the gap between analyst price targets—from BMO's $149 to BTIG's $165—reflects differing views on the company's long-term growth potential and the sustainability of current demand levels.
As the AI revolution continues to drive unprecedented power demand, companies like Bloom Energy find themselves at the intersection of multiple megatrends: digital transformation, energy security, and decarbonization. Success will require not only technological innovation but also operational excellence and strategic customer relationships.
The coming quarters will provide crucial data points on Bloom's ability to navigate this complex landscape while delivering on its financial promises. For now, the market has responded favorably to the company's vision of becoming a key power provider for the AI economy.