Bloom Energy Corporation witnessed a significant surge in its share price during Monday's trading session, with the stock advancing approximately 8.5% and settling near the $155 level in after-hours activity. This upward movement followed an analyst action from Mizuho Securities, which increased its price target on the fuel cell technology company.
Analyst Target Revision and Market Reaction
Mizuho analyst Maheep Mandloi raised the firm's price target on Bloom Energy to $110 from $89, while maintaining a Neutral rating on the stock. The adjustment was communicated in a research note issued after the company's latest quarterly results. Mandloi highlighted an anticipated expansion in the company's 2026 gross margin, attributing the improvement to ongoing cost reduction initiatives and enhanced factory utilization rates. The analyst also pointed to stronger "book-and-bill" visibility—referring to the relationship between incoming orders and recognized revenue—as a positive catalyst for the business outlook.
The broader fuel cell sector did not experience uniform gains alongside Bloom's rally. During the session, FuelCell Energy shares rose 3.6%, while Plug Power managed a more modest 1.2% increase. The Nasdaq Composite Index closed higher by 0.9% on the day.
Catalysts: AI Data Center Demand and Project Financing
The company's recently filed annual 10-K report brought two key investment themes back into focus for Wall Street. First, the filing underscored a growing reliance on artificial intelligence data center clients, citing increased demand for Bloom's Energy Server units amid constraints on traditional power grid supply. Second, the document detailed a substantial financing framework, backed by Brookfield Asset Management, that could provide up to $5 billion over a five-year period to support eligible fuel cell projects.
Bloom Energy's leadership has emphasized the critical nature of on-site power solutions for the AI industry. Founder and CEO KR Sridhar recently stated that the concept of "bring-your-own-power" has evolved from a mere industry catchphrase to an essential requirement for AI hyperscalers. Chief Financial Officer Maciej Kurzymski concurrently noted the company's focused efforts on reducing product costs and improving operational execution.
Financial Performance and Forward Guidance
The annual report follows the company's February 5 earnings release, which disclosed 2025 revenue of $2.02 billion. For the 2026 fiscal year, management provided revenue guidance in the range of $3.1 billion to $3.3 billion, with projected non-GAAP earnings per share between $1.33 and $1.48.
Despite the optimistic projections, the company included notable cautionary statements in its regulatory filing. Bloom Energy warned investors of several risks that could impede its AI-fueled expansion, including potential delays in AI adoption rates, shifts in customer capital expenditure priorities, constraints on project financing or tax-equity funding, and possible permitting holdups or local moratoria that might slow deployment schedules.
Investor Scrutiny and Execution Challenges
Market participants are closely monitoring the company's ability to convert its growing order book into shipped products and recognized revenue. A key concern among analysts and investors is whether Bloom can maintain or improve its profit margins as production volumes scale upward. The company has not yet announced a date for its next earnings release, but financial market calendars suggest a potential first-quarter update for 2026 could occur around April 29.
The trading session saw Bloom Energy shares fluctuate between $141.37 and $156.93 during regular market hours before settling with its substantial gain. The stock's performance reflects renewed investor confidence in companies positioned to benefit from the massive infrastructure spending associated with artificial intelligence development, particularly those offering solutions for rapid power deployment.
