Bloom Energy’s second quarter results were marked by strong revenue growth and a significant improvement in profitability, yet the market reacted negatively. Management attributed the quarter’s momentum to heightened demand from data center operators, especially those supporting artificial intelligence workloads, and to new partnerships with major utilities and hyperscalers. CEO K.R. Sridhar highlighted that “time to power” and reliability were decisive factors in recent customer wins, citing rapid installations for clients such as Oracle and Quanta Computer. The company’s focus on operational discipline, product cost reduction, and the expansion of its service business contributed to higher margins and a consistent trend of profitability over the past six quarters.
Is now the time to buy BE? Find out in our full research report (it’s free).
Bloom Energy (BE) Q2 CY2025 Highlights:
- Revenue: $401.2 million vs analyst estimates of $376.6 million (19.5% year-on-year growth, 6.5% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.02 (significant beat)
- Adjusted EBITDA: $41.24 million vs analyst estimates of $27.86 million (10.3% margin, 48% beat)
- The company reconfirmed its revenue guidance for the full year of $1.75 billion at the midpoint
- Operating Margin: -0.9%, up from -6.9% in the same quarter last year
- Market Capitalization: $9.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bloom Energy’s Q2 Earnings Call
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David Keith Arcaro (Morgan Stanley) asked whether the Oracle partnership could accelerate additional hyperscaler deals. CEO K.R. Sridhar highlighted that Oracle is the first direct hyperscaler customer and that the project’s success could serve as a model for future engagements.
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Michael (JPMorgan, for Mark Strouse) requested specifics on the timeline and funding for the planned capacity expansion. Sridhar responded that Bloom can add factory capacity “in months” and that the estimated $100 million investment is already funded.
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Manav Gupta (UBS) questioned the drivers behind margin improvement and the potential for double-digit operating margins in the future. Sridhar attributed margin gains to fiscal discipline in cost management and level-loaded manufacturing, noting that quarterly variability could occur due to product mix and volume.
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Christopher J. Dendrinos (RBC Capital Markets) asked about the adoption of combined heat and power (CHP) solutions. Sridhar said customer interest is high and that CHP can be added as a modular upgrade, enhancing the value proposition for both data center and industrial clients.
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Dushyant Ajit Ailani (Jefferies) inquired about international expansion, specifically in markets like Taiwan and Europe. Sridhar stated that while the U.S. remains the primary market, Bloom is making progress in establishing a presence in new international markets, with ongoing efforts in Taiwan, Germany, Italy, and the U.K.
Catalysts in Upcoming Quarters
Over the next few quarters, the StockStory team will be monitoring (1) the pace and scale of new data center deployments, including follow-on contracts with hyperscalers and utilities; (2) execution on the planned expansion to 2 gigawatts of manufacturing capacity; and (3) adoption rates for new product features such as combined heat and power. Progress on international market entries and the ability to maintain margin improvements will also be key signposts for Bloom’s ongoing performance.
Bloom Energy currently trades at $41.87, up from $37.39 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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