Bloom Energy Blossoms on Rapidly Accelerating Outlook
Submitted by Thomas Hughes. First Published: 2/7/2026.
In Brief
- Bloom Energy is well-positioned to serve data center and industrial power needs.
- A triple-digit increase in the backlog points to strong revenue and earnings in 2026.
- Analysts and institutions indicate accumulation, but there is a risk of volatility.
Bloom Energy (NYSE: BE) has been rallying for months thanks to its exposure to data-center and industrial power demand.
While not entirely carbon-free, Bloom's easily deployable, scalable solid-oxide fuel cells are among the cleanest options for carbon-based generation and are in strong demand.
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Bloom Energy's technology is proven and applies to on-site power needs across industries. The company's accelerating outlook has driven price momentum that appears to have more room to run.
Bloom Energy: The Technical Outlook Is Bullish
The technical picture looks bullish. Early February price action confirmed support at a key level — the top of a trading range that had been acting as resistance.
The base-case projection calls for a move roughly equal to the trading range's dollar width (about $72), while the bull case is framed as a percentage gain from the same base. Using that method, the base case implies a move toward roughly $220, while the bull case suggests gains that could approach a 95% advance, near $290 at the peak.
Analyst trends broadly support the bullish view, but consensus price targets lag the rally, which raises the potential for volatility. The market could pull back to retest consensus levels for support, though that is not guaranteed.
Following the earnings release several firms raised price targets toward the upper end of the range, signaling additional upside. The high-end consensus sits near $207, a bit below the technical base-case projection.
Institutional activity also points to support for early-February trading levels. Institutions were net sellers for much of 2025 but shifted to accumulation in Q4 and continued that trend into early 2026. With institutions owning more than 75% of the stock, they provide a solid support base and a market tailwind. If accumulation persists, reaching the technical base case becomes more likely — the main question is timing.
Bloom Energy Blows Past Consensus, Wows With Guidance
Bloom Energy's Q4 2025 results underline its role in the data-center ecosystem. Revenue rose 35.9% to $777.7 million, beating consensus by $132.4 million (roughly 2,000 basis points). Growth was driven by both product and service revenue, each increasing by more than 33%.
Margins held up better than feared. While gross margin contracted by triple-digit basis points, adjusted EPS of $0.45 was slightly higher year-over-year and comfortably ahead of forecasts.
Guidance was constructive: backlogs grew about 150% year over year across the system, led by products and services, and management expects services margins to improve as the installed base expands.
The headline for the market was Bloom's 2026 revenue target of $3.1 billion — about $500 million above expectations and possibly conservative given current trends.
Bloom is actively expanding and scaling production, and the likely outcome is that the company will outperform guidance, extending the bullish fundamental and technical trends.
Short interest remains a potential headwind. It isn't at record levels, but it spiked to roughly 10% in early January, which could cap near-term gains. The upside is that the strong 2026 outlook increases the probability of short covering, even if the Q4 release did not immediately trigger a squeeze.
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