TLDR
- Bloom Energy reported Q3 2025 revenue of $519 million, up 57.1% year-over-year, beating analyst expectations of $428.1 million
- The company posted adjusted earnings per share of $0.15, exceeding analyst estimates of $0.10
- Operating cash flow reached $19.7 million in Q3, a turnaround from negative $69.5 million in the same period last year
- Multiple analysts raised price targets, with Morgan Stanley increasing to $155, Susquehanna to $157, and BMO Capital to $136
- Bloom Energy secured a $5 billion partnership with Brookfield Asset Management to deploy fuel-cell technology in AI data centers
Bloom Energy stock jumped 22.8% to 52-week highs after the fuel cell company delivered its fourth consecutive quarter of record revenue. The company’s shares have increased more than 5x in the last six months.
The rally came after Bloom Energy reported Q3 2025 revenue of $519 million. This represents a 57.1% increase from $330.4 million in the same quarter last year. Analysts had expected revenue of $428.1 million.
The company also beat expectations on the bottom line. Bloom Energy posted adjusted earnings per share of $0.15. Analysts had forecast adjusted EPS of $0.10.
Cash flow showed improvement as well. The company generated $19.7 million in operating cash flow during Q3 2025. This marks a reversal from negative $69.5 million in operating cash flow during the same period last year.
Gross margin improved to 29.2% from 23.8% year-over-year. Non-GAAP operating income jumped to $46.2 million from $8.1 million in the prior year period.
Analyst Response
The strong quarterly performance prompted several Wall Street firms to raise their price targets. Morgan Stanley increased its target to $155 from $85. Susquehanna lifted its price target to $157 from $105.
BMO Capital raised its target to $136 from $97. The upgrades reflect growing confidence in Bloom Energy’s business trajectory and market position.
Partnership Drives Growth Narrative
Bloom Energy secured a $5 billion partnership with Brookfield Asset Management. The agreement focuses on deploying Bloom’s fuel-cell technology in AI data centers. This deal helped shift investor perception of the company.
The partnership addresses growing demand for reliable and clean energy. Data centers face increasing grid limitations as AI infrastructure expands. Bloom Energy is now viewed as a potential key supplier of next-generation power systems.
The company is targeting $1.5 to $1.8 billion in revenue in the near term. Some analysts believe annual revenue could exceed $3 billion in the next few years.
Management aims for gross margins of 25% to 30% once manufacturing reaches full maturity. Even at conservative estimates of 15% operating margins on $3 billion revenue, this would generate roughly $450 million in operating profit.
At approximately $103 per share, Bloom Energy has a market cap near $24 to $25 billion. This valuation reflects investor expectations for future growth rather than historical performance.
The company stands out from many fuel cell peers by reporting substantial revenue growth. It also generates positive cash flow, which sets it apart in the sector.
Rising interest in hydrogen, onsite energy production, and distributed energy provides tailwinds for the business. The company benefits from increasing demand for backup power and grid independence solutions.
Growth expectations are already priced into the stock. Any deviation from execution plans could lead to sharp corrections. The margin for error has tightened following the rally.
Bloom Energy is targeting annual revenue in the $1.5 to $1.8 billion range as it scales operations.
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