Bloom Energy shares fall 10% despite record revenue and raised guidance

Shares of Bloom Energy fell 10.2% in the morning session following a decline from the prior day, according to FinancialContent. The drop came despite the company reporting record third-quarter revenue of $1.24 billion, a 138.1% increase year-over-year, and raising its full-year 2026 revenue guidance to between $4.4 billion and $4.6 billion.

The company’s free cash flow, however, declined to negative $180.6 million from positive $7.37 million a year earlier. CFO Simon Edwards attributed this cash outflow to working-capital investments in inventory, contract assets, and receivables to support customer deliveries. He also noted that product revenue is recognized upon delivery, while billings follow contract milestones that may occur in future quarters.

Capital spending increased to $153 million in the quarter to expand factory capacity aimed at meeting AI data center demand. Management highlighted that free cash flow remained positive at $42 million year to date and the company holds $2.5 billion in cash reserves.

The stock’s pullback was influenced by profit-taking and broader investor concerns about AI-related capital expenditures, despite Bloom Energy being a key beneficiary of the AI power trade. FinancialContent noted that such price drops can present buying opportunities for investors.