Bloom Energy’s stock is experiencing significant upward pressure following the release of its impressive fourth-quarter 2025 results and a substantially upgraded forecast for 2026. This positive momentum, fueled by Wall Street’s reaction, centers on the burgeoning demand from artificial intelligence data centers. However, questions remain regarding the company’s ability to execute on its now-substantial order backlog.
The equity advanced more than 7% in a single trading session recently, bolstered by a series of fresh analyst commentaries issued after the financial report.
Record Quarter and Upgraded Guidance
The catalyst for the renewed analyst attention was the Q4 2025 earnings release, which showcased performance well beyond market expectations:
- Q4 Revenue: $777.7 million, surpassing estimates of $647.6 million and representing a 20% beat.
- Adjusted EPS: $0.45, significantly higher than the $0.25 consensus.
- Full-Year 2025 Revenue: $2.02 billion, a 37.3% year-over-year increase.
Management provided an ambitious outlook for 2026, projecting revenue between $3.1 billion and $3.3 billion and adjusted earnings per share in the range of $1.33 to $1.48. This guidance sharply exceeds prior market expectations, which had hovered around $2.6 billion in revenue.
AI Data Centers Drive Order Surge
A standout figure from the report was the 140% growth in the company’s order backlog, which now stands at $6 billion. Company executives highlighted that AI computing racks demand nearly 100 times more power than traditional server racks, positioning Bloom’s solid oxide fuel cells as a potential power solution for these energy-intensive data centers.
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Wall Street Responds with Revised Price Targets
In response to the strong results and guidance, several research firms raised their price targets for Bloom Energy shares:
- Mizuho increased its target to $110 from $89, maintaining a “Neutral” rating.
- TD Cowen raised its target to $160, reiterating a “Hold” recommendation.
- BMO Capital Markets lifted its target to $149, affirming a “Market Perform” stance.
- BTIG analyst Gregory Lewis reaffirmed a “Buy” rating, boosting his target to $165 from $145, citing pipeline strength and management’s confident outlook.
Despite these upgrades, analyst sentiment remains divided. Current ratings comprise 1 “Strong Buy,” 11 “Buy,” 11 “Hold,” and 3 “Sell.” The average price target across the board is $128.29.
Bank of America, while substantially raising its target to $71 from $39, maintained an “Underperform” rating. Its analysts argued that while near-term visibility has improved after the strong quarter, the stock price already reflects expectations for a smooth multi-year delivery ramp and margin normalization.
Investor Activity and Upcoming Catalysts
Institutional investors hold 77.04% of the company’s outstanding shares. Notable activity in Q4 2025 included new positions established by GeoSphere Capital Management (worth approximately $4 million) and Allstate ($1.44 million), while Clearstead Advisors increased its existing stake by 0.9%. Company insiders sold a total of 14,639 shares valued at $1.5 million during the quarter, described as routine transactions.
The market’s focus now shifts to the next quarterly report, expected in late April. Investors will be keenly watching the pace at which the $6 billion backlog converts into recognized revenue and whether margin progression aligns with the trajectory suggested by the robust 2026 guidance.
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