Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $1.24 billion | up 138% year-over-year |
| Operating Income | $286 million | up over 500% year-over-year |
| Product Revenue | $1.07 billion | up 179% year-over-year |
| Operating Margin | 23.1% | up from 8.9% a year ago |
| Non-GAAP Diluted EPS | $0.94 | compared with $0.15 a year ago |
Guidance and outlook
- Full year revenue outlook raised to $4.4 billion to $4.6 billion.
- Non-GAAP operating income outlook raised to $960 million to $1.03 billion.
- Non-GAAP diluted EPS outlook is $3.10 to $3.40.
- Maintaining non-GAAP gross margin outlook of approximately 34%.
How management sounded
Confident (+8 on our -10 to +10 scale). Management raised full-year guidance for the third time and emphasized that the company is scaling rapidly to meet surging demand for on-site power. Management sounded more upbeat than on 92% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Manufacturing Expansion
Asked: Why expand the Fremont footprint now?
Answer: Management stated that electricity demand is skyrocketing and they need to prepare for capacity beyond the 5 gigawatt milestone.
Free Cash Flow
Asked: Why was there a use of cash this quarter?
Answer: Management explained that they are self-funding investments in working capital and capacity to support growth, noting they remain free cash flow positive year-to-date.
Utility Relationships
Asked: What is the opportunity within regulated utilities?
Answer: Utilities are increasingly viewing Bloom servers as distribution assets that can be deployed to manage load growth and enhance network stability.
Carbon Capture
Asked: How will you monetize carbon capture?
Answer: Management is agnostic to the model, noting they can work with partners or end customers to provide solutions that fit specific project needs.
What to watch before the next call
- The timing of customer project deliveries and site readiness in the fourth quarter.
- Progress on international market expansion and potential new partnerships.
- The conversion of contract assets into cash as billing milestones are reached.
