Key Takeaways
- Bloom Energy shares rose 7% today, one trading day after an 11% drop on its third-quarter report, as Barclays raised its price target to $316 from $308 and AI power stocks rallied.
- Friday’s selloff was about cash: third-quarter revenue rose 138% to $1.24 billion, but free cash flow was negative $180.6 million as contract assets jumped $430 million.
- Demand still looks strong, with 2026 revenue guidance raised for the third time this year and analysts expecting revenue to more than double in 2026.
- The fourth-quarter report has to show those contract assets turning into cash.
Bloom Energy (BE) shares are up 7% today (trading at about $208), recovering part of Friday’s 11% drop after a record quarter.
Before the open, Barclays analyst Christine Cho raised her price target to $316 from $308 and kept an Equal Weight rating. Other AI power stocks rose too, but Bloom had more ground to make up.
What Spooked Wall Street
Bloom’s third-quarter revenue rose 138% to $1.24 billion, and management raised 2026 guidance for the third time, to $4.4 billion to $4.6 billion (up from $3.1 billion to $3.3 billion in February).
The problem was cash. Contract assets rose $430 million in the quarter, and Oppenheimer’s Colin Rusch (Perform) warned that cash-flow worries could weigh on the stock until Bloom turns its deployments into cash. Roth cut its target to $230, Jefferies to $242, BTIG to $250 and JPMorgan to $292. (Morgan Stanley went the other way, to $335.)
That matters because positive free cash flow is new for Bloom.
Third-quarter free cash flow was negative $180.6 million, leaving $41.6 million for the first nine months of 2026.
TIKR Tracks 32 Analysts on Bloom Energy. How Many Say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Bloom Energy, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Bloom Energy’s Analyst Ratings
Customers Are Still Paying Bloom Up Front
CFO Simon Edwards said on Bloom’s third-quarter call that the quarter’s cash use is “not the beginning of a trend.” Customers are also paying up front: deposits reached $661.4 million at September 30, up from $78.2 million at the end of 2025.
Wall Street expects revenue to more than double this year, to about $4.53 billion, and to reach $10.4 billion by 2028.
Bloom’s Fourth Quarter Has to Pay
Bloom traded at about 40x forward earnings at Friday’s close (about 43x now), roughly half its three-year average of 76x and far below the nearly 200x it reached in late 2025. Analysts have raised their 2026 earnings estimate 52% since June 30.
Friday’s sellers leaned too hard on one quarter’s cash. When a stock’s earnings estimates rise by half while its multiple falls to about half its own average, it is getting cheaper as it grows, and I expect that growth to drive the price from here.
The test is the fourth-quarter report. Analysts expect about $214 million of 2026 free cash flow, so the fourth quarter needs more than $170 million. Another quarter in the red would prove Friday’s sellers right.
So what is Bloom Energy stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Bloom Energy could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
