Bloom Energy Q3 Revenue Surges 138% on AI Data Center Power Demand

Bloom Energy reported third-quarter revenue of $1.24 billion, up 138% year over year, beating analyst estimates of $1.07 billion, as demand for on-site power solutions from AI data centers surged. Net income reached $250.3 million, with adjusted EPS of $0.94, both exceeding expectations.

Product revenue exceeded $1 billion for the first time in a single quarter, up 179% year over year. The company raised its full-year revenue guidance for the third time this year, to $4.4–$4.6 billion, and lifted adjusted EPS guidance to $3.10–$3.40.

However, management warned that capacity expansion costs and accelerated deliveries will pressure gross margins in 2027. Free cash flow was negative $181 million in the quarter, due to timing gaps between deliveries and cash collection.

CEO KR Sridhar said the aging grid cannot keep pace with AI expansion, pushing hyperscalers toward distributed on-site generation. He cited Nvidia's CEO comment that a gigawatt-scale data center loses $10 billion in missed revenue per quarter of delay.