Flowering Energy (BE) is a leading manufacturer of solid oxide fuel cell (SOFC) systems that provide clean on-site electricity to businesses around the world, supporting Fortune 100 companies, large-scale data centers, large utilities, manufacturers and healthcare organizations.
The company’s main product, Bloom Energy Server, converts natural gas, biogas or hydrogen into electricity without combustion, making it an efficient and environmentally friendly solution for distributed energy generation. This technology has positioned Bloom as a critical partner for data centers powering AI workloads and industries seeking energy resilience and a reduced carbon footprint.
From large-scale grid-connected primary power systems to smaller, off-grid solutions, Bloom can scale capacity even if the grid is not ready or available. Not the least of its attributes: Bloom fuel cells can often be deployed and operating within 90 days.
The oracle prophecy
A year ago, Oracle (ORCL) CEO Larry Ellison said something shocking during his company’s quarterly conference call: “We have 162 data centers…we would like to have 1,000 to 2,000 more.”
A year later, it just met an impressive $455 billion in pending demand for Oracle Cloud Infrastructure services. ORCL shares jumped 30% following this news and Bloom Energy joined the rally as they had just been announced as a key supplier of on-site energy systems for the data center builder.
Even though estimates have risen for Bloom, some analysts remain skeptical about how quickly the company can grow, citing only 15 to 50 megawatts of energy demand from Oracle over the next year. Here is a message from Jefferies a few weeks ago…
“BE’s association with Oracle has generated excitement, especially with OpenAI’s Stargate project increasing ORCL’s backlog… we estimate this deal could be in the 15-50 megawatt range – good, but not great.”
Jefferies says delivery of BE’s fuel cells is rapid, but infrastructure delays may slow deployment. The bank’s new $31 PT reflects “mark-to-market multiples and higher volume,” but they have “no confidence in 2027 volume estimates.”
But last week, Bloom announced a new contract in Wyoming worth 900 MW as BFC Power advanced plans to build a large facility in Laramie County that would use BE fuel cells for continuous power.
See my video presentation on Bloom in this week’s top stock picks.
Bloom’s Growth Outlook
Faced with this news, analysts have barely changed their outlook. On Monday, Evercore ISI initiated coverage with a price target of $100. But UBS was already in a dominant position before the Wyoming deal, with a high target of $105.
I think analysts are behind on this growth story. Given the rapid pace of new data center infrastructure projects announced by OpenAI, Tesla(TSLA) xAI, and Metaplatforms (META), and construction lead times for new nuclear facilities of 2 to 4 years, it seems clear that demand for Bloom Energy solutions will grow rapidly to address the energy deficit.
Even before the Wyoming deal, Bloom’s leading consensus among four analysts was for growth of 20% to nearly $1.8 billion, with a projected 21% jump in 2026 to surpass $2 billion.
And results have increased this year as the company turns the screw on profitability. The EPS consensus for 2025 is for a 78% rise to 50 cents and next year another 50% rise to 75 cents.
Increase volume and profits
Bloom’s Q2 2025 revenue reached $401.2 million, up 19.5% year-over-year, with product sales leading at $296.6 million (an increase of 31%) and services revenue at $54.4 million. Gross margin increased to 26.7% (non-GAAP: 28.2%) and the company reported non-GAAP quarterly operating profit of $28.6 million, marking sustained profitability in services. For full year 2025, Bloom expects revenue between $1.65 billion and $1.85 billion and a non-GAAP gross margin of approximately 29%.
Major customers include Oracle (for AI data centers), Life Technologies and numerous companies in the manufacturing, healthcare and retail sectors aiming for 24/7 clean and resilient energy production.
With many new customers in a rapidly expanding market, Bloom’s flexible fuel systems and growing partnerships in the digital and clean energy sectors support its path to continued revenue growth and margin expansion.
Given that their “clean energy” boxes can be deployed quickly (90 days), I imagine the company could have a growth trajectory like Generac during this massive build-out phase of the data center/AI revolution. Generac has doubled its sales in two years since the end of 2020 to reach $4.6 billion.
Conclusion : With a market cap of $20 billion, Bloom Energy trades about 10 times sales compared to the nuclear reactor supplier. Ok hey (All right) which has no projected revenue until 2027. I believe BE is in a superior position to grow and reward investors. I own it for the Zacks TAZR Trader Portfolio.
