TLDR
- Bloom Energy shares rose 18.1% premarket to $138.82 after Q3 earnings hit $0.15 per share versus $0.10 expected
- Q3 revenue of $519 million beat Wall Street’s $428.1 million estimate by over 21%
- Installation revenue doubled from last year as AI infrastructure creates unprecedented power needs
- Company gross margin reached 29.2%, up from 23.8% in the year-ago quarter
- Stock has gained over 500% year-to-date compared to 13.6% for the NYSE Composite Index
Bloom Energy stock climbed 18.1% to $138.82 in premarket action Wednesday following third quarter earnings that blew past analyst forecasts.
The company reported adjusted earnings of $0.15 per share for the three months ending September 30. Analysts surveyed by Wall Street expected $0.10 per share.
Revenue came in at $519 million. That topped estimates of $428.1 million by more than $90 million.
The results mark the fourth consecutive quarter where Bloom Energy beat revenue expectations. Shares are poised to hit a record high at the opening bell if premarket momentum continues.
The stock has climbed more than five-fold so far this year. The NYSE Composite Index gained just 13.6% during the same timeframe.
Data Center Power Needs Explode
Installation revenue doubled compared to the third quarter of 2024. Artificial intelligence workloads are creating a power crunch across the data center industry.
The U.S. Energy Information Administration projects electricity consumption will set new records in 2025 and 2026. Grid infrastructure can’t keep pace with demand growth.
Data center operators are turning to alternative power sources. Fuel cells provide reliable on-site electricity without depending on transmission lines.
CEO KR Sridhar described the market opportunity as transformative. He highlighted AI demand, government priorities, and technological innovation as converging forces driving growth.
The company has landed contracts with American Electric Power, Brookfield Asset Management, and Oracle. These partnerships position Bloom Energy at the center of the data center power revolution.
Brookfield announced a $5 billion investment in Bloom’s technology on October 13. The deal focuses on supplying power to data centers and pushed shares up 26.5% that day.
Margins Expand While Revenue Grows
Gross margin reached 29.2% in the third quarter. That’s up from 23.8% in the same period one year ago.
The margin expansion shows Bloom Energy is improving profitability while scaling the business. Better margins translate directly to stronger bottom-line performance.
CFO Maciej Kurzymski told investors to expect fiscal 2025 results “to be better than our previously stated annual guidance on our financial metric.”
The company plans to double production capacity to over 2 gigawatts. Management projects this expansion could lead to quadrupled revenue in 2026.
Momentum Builds
Bloom Energy is capitalizing on a perfect storm of demand drivers. AI computing requires massive amounts of electricity that existing infrastructure can’t deliver.
The fuel cell approach solves critical problems for data center operators. Power arrives on-site without grid dependence or transmission bottlenecks.
Four straight quarters of revenue beats demonstrate execution strength. Rising margins prove the business model scales profitably.
Brookfield’s massive investment validates both the technology and market opportunity. When a global asset manager commits $5 billion, other institutional investors take notice.
The company released results Tuesday after the closing bell. Wednesday’s regular session trading will reveal whether the premarket enthusiasm carries through the full day.
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