Bloom Energy (BE) stock rallied over 10% in premarket trading after the company reported better-than-expected fiscal second-quarter results and raised its full-year guidance on Tuesday. Strong demand for its fuel cell systems, particularly from AI data centers, drove record revenue and improved profitability.

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Following the strong beat-and-raise results, TD Cowen analyst Jeff Osborne said the company is "firing on all cylinders." Osborne praised Bloom's strong execution and higher guidance but said the stock's current valuation limits additional upside. Osborne maintained his Hold rating and $235 price target, which implies 40.9% upside potential from current levels.

Osborne noted that Bloom raised its full-year outlook for the second consecutive quarter, driven by stronger demand and a growing project pipeline. Management also said existing customers continue to expand deployments at new locations, while contract protections help reduce the impact of project delays.

Gist of BE's Q2 Results

The company reported record revenue of $1.07 billion, up 166% year-over-year, marking the first time Bloom Energy has surpassed the $1 billion revenue milestone. Adjusted earnings came in at $0.78 per share, easily beating Wall Street's estimate of $0.41 per share.

Gross margins expanded during the quarter, supported by higher sales volumes and improved pricing. Moreover, Bloom Energy raised its full-year 2026 outlook, now expecting revenue between $3.9 billion and $4.2 billion and adjusted EPS guidance in the range of $2.55 to $2.85. The stronger outlook signals that demand remains healthy and management expects the momentum to continue.

Bloom Energy said demand for its fuel cell systems continues to grow as businesses seek reliable, always-on power. The rapid expansion of AI data centers has increased demand for on-site power solutions such as Bloom's fuel cell systems, which can be deployed much faster than waiting for new grid connections.

CEO KR Sridhar said that all major U.S. hyperscalers and more than a dozen AI labs and colocation operators have now approved Bloom's systems for their AI facilities, calling Bloom "a standard for AI onsite power."

Is BE Stock Good to Buy?

On TipRanks, BE stock carries a Moderate Buy consensus rating based on seven Buys and 11 Hold ratings. The average Bloom Energy price target of $291.06 implies 74.5% upside potential from current levels. Year-to-date, BE shares have surged 92%.