Bloom Energy Q2 revenue hits record $935M on data center surge

Bloom Energy (BE) reported a record fiscal second quarter of 2026, with equipment sales reaching $935 million. These sales accounted for nearly 90% of the company's total revenue for the period, driven by accelerating deliveries to data centers. Equipment sales rose 215% from the same quarter last year, while total revenue increased by 166%. This sharp acceleration marks a significant change for the company, as revenue growth had been 35.9% year over year just two quarters earlier.

The surge in equipment sales has contributed to a substantial run in the stock. Bloom Energy shares returned 314% over the past year, significantly outperforming the S&P 500's 16.8% gain during the same period. The stock currently trades at 341.6 times its trailing earnings, compared to a multiple of 21.9 for the S&P 500. This valuation suggests the market price assumes that data center deliveries will continue to climb.

Management attributed the quarter's performance primarily to the data center sector. During the earnings call, executives noted that the results reflected accelerating deliveries to that end market. They acknowledged uncertainty regarding whether the current pace of artificial intelligence investment would sustain itself. In response, management stated it would focus on controllable factors, such as reducing product costs annually.

The company raised its full-year financial outlook for 2026. Management now expects revenue between $3.9 billion and $4.2 billion, which would represent a doubling of 2025 revenue at the midpoint. The non-GAAP operating income outlook was also increased to $800 million to $900 million, up from an initial range of $425 million to $475 million at the start of the year.

Profitability is heavily tied to equipment sales due to higher margins. In fiscal Q2 2026, Bloom Energy retained 37.2% of equipment sales as gross profit, compared to 22% for services. While management stated that its 2026 revenue guidance does not depend on any single project and that backlog is growing faster than revenue, investors face elevated downside risk if growth slows. The stock demonstrated high volatility during the 2025 US tariff shock, dropping 38% while the S&P 500 fell 19%. The next catalyst for assessing this risk is the fiscal Q3 2026 report, which will reveal whether equipment sales maintain their current trajectory.