Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 6 of last 7 quarters
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Bloom's record quarter and raised guidance underscore the accelerating demand for on-site, islanded power solutions for AI data centers, as grid interconnection timelines and community opposition become bottlenecks. The expansion of Brookfield's financing framework to $25B and the new $2.6B IDF/Oaktree/MUFG/Morgan Stanley commitment signal that capital is flowing to support gigawatt-scale AI infrastructure deployments, validating Bloom's role as a key enabler of the AI buildout.
Bloom Energy delivered a record quarter with revenue of $1.065B, up 166% YoY, driven by accelerating data center deliveries. Product revenue was $935M (up 215% YoY) and gross margin expanded to 34.3% (up 604 bps YoY). Operating income was $240M (up 737% YoY) and adjusted EBITDA was $253M (~24% of revenue). The company generated $226M in operating cash flow and ended the quarter with $2.7B in cash. Management highlighted that all major U.S. hyperscalers and over a dozen neoclouds/colocation operators have validated Bloom's power solutions, and that the Brookfield financing framework was expanded fivefold to $25B.
Management raised full-year 2026 revenue guidance to $3.9B–$4.2B (midpoint ~100% YoY growth), up from the prior $3.4B–$3.8B. They also raised non-GAAP operating income guidance to $800M–$900M (implying ~21% operating margin at midpoint) and non-GAAP diluted EPS to $2.55–$2.85. Gross margin guidance was held at approximately 34%. The outlook is built on backlog conversion plus in-year bookings, with capacity expansion continuing in 'Copy Exact' increments ahead of committed orders. Management emphasized that they are not capacity-constrained and that revenue growth will be driven by customer site readiness, not their own supply. They also highlighted the Brookfield financing framework expansion to $25B and the new $2.6B IDF/Oaktree/MUFG/Morgan Stanley commitment as key enablers for gigawatt-scale deployments.
“Bloom will not be your bottleneck. We deliver power at AI speed and enable our customers to grow.”
on Value proposition
“We have successfully demonstrated the earning power of our agile business model, doing exactly what we built it to do.”
on Business model
“We are not going to be the bottleneck. We have a sophisticated algorithm to figure that out for the year. So our 2026 guidance is not going to have any dependence on any single project.”
on Guidance resilience
KR, I want to go back to your comment about all of the major U.S. hyperscalers and over a dozen other operators are now validated and approved to use your technology. Are you able to talk about a bit more how many of those are actively using your technology today? And how many of those are kind of in your backlog or in your near-term pipeline?
KR said they don't split that out, but confirmed all major U.S. hyperscalers and over a dozen neoclouds/colocation partners are validated. He noted it took 10 years to become standard in C&I, but only 9 months in AI, calling it 'not a faster horse, this is a car.'
So there have been some project development challenges that have gotten headlines at a few large projects. I was wondering if you could characterize your financial exposure to project delays, any contractual protections that you typically have in place and alternatives that you may work on with customers.
Simon Edwards explained that contracts are structured with master service agreements and flexibility to redeploy equipment. KR added that 2026 guidance is not dependent on any single project, using a 'sophisticated algorithm' to account for potential delays.
Simon, sorry, I'll put you on the hot seat for a little bit. Just curious, so obviously, impressive raise in guidance on a strong 2Q, but the free cash flow guide was pulled. Just wanted to get some context around that and just considering that you have $2.7 billion worth of cash on the balance sheet, just thinking through kind of capital allocation.
Simon Edwards clarified that the company aligned presentation to formal guidance, but sees strong conversion from operating income to free cash flow. He noted ~$175M raise in op income guidance, with 100% dropping to CFOA, implying a new baseline of $375M+.