Bloom Energy

Oracle signed a master agreement in April for up to 2.8 gigawatts of Bloom fuel cells, with 1.2 gigawatts already deploying. That single deal is roughly the size of Bloom's entire 2025 production capacity. First quarter 2026 revenue jumped 130% year over year to 751 million dollars and product revenue alone tripled, up 208%. Management raised full year guidance to 3.4 to 3.8 billion dollars in revenue, implying about 80% growth, up from a prior outlook near 60%.

For years Bloom was a growth story without earnings. Not anymore. First quarter 2026 GAAP operating income hit 72 million dollars versus a 19 million dollar loss a year earlier. Service margins, which had been near zero, swung from 1.3% to 13.3% as the installed base grew. Adjusted EBITDA hit 143 million dollars in just three months, and operating cash flow flipped to positive 74 million from negative 110 a year ago. Total backlog now sits at 20 billion dollars.

After running roughly 10 times in a year, the stock trades around 30 times 2027 expected earnings. That assumes flawless execution on the Oracle ramp and continued margin expansion. A single delayed quarter or a margin miss could send shares down 30% or more before the long-term thesis catches them.

Bloom runs primarily on natural gas, which is cleaner than coal but not exactly a solar panel. If energy policy shifts hard toward strict renewables, fuel cells could lose their tax credits and customer appeal. Hydrogen compatibility is the long-term answer, but commercial hydrogen at scale is still years away.