Fluence Energy (FLNC) shares surged 27.4% on Friday, closing at $24.16 after the company announced master supply agreements with two large data-center customers and reported a record $5.6 billion backlog. The stock touched an intraday high of $26.98, reflecting renewed investor enthusiasm for companies positioned to supply power to AI-driven data centers.
The rally came despite a quarterly revenue miss. Fluence reported second-quarter revenue of $464.9 million, up 7.7% year-over-year but below the $614.93 million analysts expected. Net loss narrowed to $29.2 million, or $0.16 per share, improving from a loss of $41.9 million, or $0.24 per share, a year ago. The loss per share beat forecasts by a small margin.
Order intake year-to-date through May 6 doubled to $2.0 billion, up from $1.0 billion a year earlier. The company secured contracts with two hyperscalers—major cloud and data-center players—and expects the initial order under those deals in the fiscal third quarter. Chief Executive Julian Nebreda said the company's "customer expansion strategy is gaining momentum." Finance chief Ahmed Pasha highlighted "strong liquidity," with total liquidity of approximately $900 million and cash of $412.9 million as of March 31.
Fluence maintained its fiscal 2026 guidance, projecting revenue between $3.2 billion and $3.6 billion and adjusted EBITDA of $40 million to $60 million. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, and stock-based compensation.
Analysts responded quickly. Roth/MKM upgraded Fluence to Buy from Neutral and doubled its price target to $26 from $13. Canaccord Genuity maintained its Buy rating and raised its target to $28 from $25, calling the hyperscaler deals a "game-changer." HSBC upgraded the stock to Hold from Reduce with a $19 target. MarketBeat tracked five Buy, eleven Hold, and five Sell ratings, with an average Hold rating and consensus price target of $18.12.
Roth MKM noted that Fluence secured a master supply agreement after beating out 25 other contenders, signaling its technology is gaining traction. The broader market for grid and power players is also heating up, with companies like Bloom Energy and Wesco International riding the data-center and electrification theme.
However, risks remain. Fluence warned that its contracted backlog may not convert into revenue as planned, with some customers potentially delaying or canceling projects. Supply-chain issues, tariff uncertainty, and higher costs tied to U.S.-made solutions have squeezed margins in the first half of the year. The company must convert at least one hyperscaler deal into a firm order in the fiscal third quarter and demonstrate sustainable margins; otherwise, Friday's rally may prove premature relative to the fundamentals.
