A maker of solid-oxide fuel cells, Bloom Energy builds the Bloom Energy Server — boxy units that quietly turn natural gas, biogas, or hydrogen into electricity without burning anything, powering data centers, factories, and utilities. Its roots trace to founder K.R. Sridhar's NASA work on making oxygen for Mars; when that mission was shelved, he flipped the idea to make power on Earth. The fuel-cell stacks are built from cheap sand-like materials, and the company's name hints at the idea of clean energy "blooming" wherever it lands.
Revenue more than doubled to $1.07B on a large AI deployment, and product gross margin reached 37%.
A single large AI customer deployment and Brookfield joint venture projects drove to more than double. Revenue rose 165% to $1.07 billion and product reached 37%, aided by a $37.4 million tariff recovery, while swung to a $72.2 million profit. The quarter confirms the AI data center opportunity is converting into revenue at scale, but the concentration of that growth in one customer and one-time tariff benefits leaves the underlying margin run-rate an open question.
Key takeaways
Total rose 165% to $1.07 billion, driven by a 215% increase in product revenue tied to a significant AI customer and projects under the Brookfield joint venture.
Product improved to 37% from 33% a year ago, aided by a $37.4 million tariff recovery and manufacturing efficiency gains, partially offset by higher warranty costs.
swung to a $72.2 million profit from a $3.5 million loss in Q2 2025, as growth outpaced a 57% increase in operating expenses driven by higher and professional services for AI data center programs.
Section summaries
Management's Discussion and Analysis
Revenue surged 165% YoY to $1.07B in Q2 FY2026, driven by a large AI infrastructure deployment and Brookfield JV projects.
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Total grew 165% to $1.07B, primarily from a 215% increase in product revenue tied to a significant AI customer and Brookfield projects.
was a $73.6 million inflow in the quarter, bringing the first-half total to a $300 million inflow, a $624 million improvement , supported by a $226 million increase in and customer deposits.
Unrestricted cash stood at $2.49 billion at quarter-end, with no amounts drawn on the $600 million , following the $2.5 billion convertible note issuance in late 2025.
What changed
The Q1 2026 watch item on product is partially answered: margin rose to 37% from 34% in Q1, but the improvement was aided by a $37.4 million one-time tariff recovery, so the underlying run-rate without that benefit remains unclear.
The Q1 2026 watch item on conversion is answered: the $93.1 million increase in deferred revenue and customer deposits in Q1 was followed by a further $226 million increase in the first half, and turned positive and stayed positive, reaching a $300 million first-half inflow.
The Q1 2026 watch item on deployment of the $2.5 billion convertible note proceeds is partially answered: cash remains at $2.49 billion with no draw on the , and the Brookfield joint venture is now generating recognized , indicating some deployment is underway.
The Q1 2026 watch item on a commercial electrolyzer order remains unresolved: no such order is disclosed in this filing, marking another quarter of R&D investment without reported from the technology.
What to watch
Whether product can hold at or above 37% in Q3 2026 without the $37.4 million tariff recovery that aided Q2, revealing the true run-rate margin on the AI data center product mix.
The pace of cash conversion on the $226 million first-half increase in and customer deposits — whether it continues to support positive in Q3 or reverses as projects are delivered.
Any disclosure of a commercial electrolyzer order, the absence of which would mark another quarter of R&D investment without reported from the technology.
Whether the concentration in a single significant AI customer persists in Q3, or whether the Brookfield joint venture and other projects broaden the revenue base.
Product improved to 37% from 33%, aided by a $37.4M tariff recovery and manufacturing efficiency gains, partially offset by higher warranty costs.
Operating expenses rose 57% to $173M, driven by higher (+$26M) and professional services for scaling AI data center power programs.
was $300M for H1 FY2026, a $624M improvement , supported by a $226M increase in and customer deposits.
Liquidity remained strong with $2.67B in unrestricted cash, and the company expects sufficient capital for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
There were no significant changes to our quantitative and qualitative disclosures about market risk during the six months ended June 30, 2026. Please refer to Part II, Item 7A, Quantitative and Qualitative Disclosures about Market Risk included in our 2025 Form 10-K for a more c…
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There were no significant changes to our quantitative and qualitative disclosures about market risk during the six months ended June 30, 2026. Please refer to Part II, Item 7A, Quantitative and Qualitative Disclosures about Market Risk included in our 2025 Form 10-K for a more complete discussion of the market risks we consider.
We are, and from time to time we may become, involved in legal proceedings or subject to claims arising in the ordinary course of our business. For a discussion of our legal proceedings, see Part I, Item 1, Note 12—Commitments and Contingencies in this Quarterly Report on Form 1…
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We are, and from time to time we may become, involved in legal proceedings or subject to claims arising in the ordinary course of our business. For a discussion of our legal proceedings, see Part I, Item 1, Note 12—Commitments and Contingencies in this Quarterly Report on Form 10-Q. We are not presently a party to any other legal proceedings that in the opinion of our management and if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition or cash flows.