Bloom Energy to Report Q4 Earnings: Buy, Hold or Sell the Stock?

Bloom Energy BE is scheduled to release fourth-quarter 2025 results on Feb. 5, after market close. The Zacks Consensus Estimate for earnings is currently pegged at 25 cents per share on revenues of $649.1 million.

Fourth-quarter earnings estimates have remained unchanged over the past 60 days. The bottom-line projection indicates a decline of 41.86% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 13.41%.

BE Stock’s Earnings Surprise History

Bloom Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 88.25%.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Bloom Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Bloom Energy Corporation Price and EPS Surprise

Bloom Energy Corporation price-eps-surprise | Bloom Energy Corporation Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

BE’s Earnings ESP: Bloom Energy has an Earnings ESP of 0.00%.

Zacks Rank of BE: The company currently carries a Zacks Rank #3.
 
Some companies in the same industry with the right combination of the two factors for an earnings beat this season are TC Energy TRP, Ormat Technologies ORA and respective Enlight Renewable Energy Ltd ENLT. TRP, ORA and ENLT have an Earnings ESP of +1.91%, +1.25% and +22.14%, respectively. All stocks currently carry a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped BE Stock’s Q4 Earnings

Bloom Energy’s fourth-quarter performance is expected to have benefited from its ability to deliver clean, on-site electricity to customers. With lead times for power supply from traditional utilities continuing to lengthen, Bloom Energy’s grid-independent solutions have become increasingly attractive, likely supporting stronger earnings in the quarter to be reported.

During the fourth quarter, the company issued new notes, net proceeds of $2.16 billion were utilized to redeem existing notes and the balance proceeds were utilized for general corporate purposes, including R&D, sales and marketing, manufacturing expansion, capital expenditures and administrative functions.

The company entered into a $5 billion partnership with Brookfield in the fourth quarter and will provide onsite power to Brookfield’s global AI factories. Bloom Energy has the expertise and knowledge and has already deployed hundreds of megawatts of its fuel cell technology to data centers.

The top line is expected to have remained supported by its ongoing projects in South Korea, a key market, in the fourth quarter. Growing installations of the company’s Energy Server systems are also likely to have contributed positively to its earnings.

BE Stock’s Price Performance

BE’s shares have gained 332.5% in the past six months compared with the Zacks Alternative Energy – Other industry’s rise of 6%.

BE Stock Returns Better Than Its Industry

The return on invested capital (“ROIC”) measures how well a company generates returns on the money it invests. ROIC is a key indicator of a company's profitability and operational efficiency. A company’s ROIC indicates that it is investing money more efficiently than peers in the industry.

Bloom Energy’s ROIC has outperformed the industry average in the trailing 12 months. ROIC of BE was 5.22% compared with the industry average of 1.06%.

BE Is Trading at a Premium Valuation

Bloom Energy is currently trading at a premium valuation compared with its industry, with the forward 12-month price-to-sales (P/S) ratio at 13.23X. The industry is currently trading at 4.68X.

Investment Thesis

Bloom Energy is benefiting from the increasing demand for clean power and its capability to offer rapid, onsite customer-specific energy solutions without relying on traditional transmission and distribution infrastructure.

Bloom Energy anticipates that more utilities will adopt its Energy Server systems, either to support their entire grid or provide on-site power for specific customers. As product costs decline, Bloom Energy expects its energy solutions to become increasingly cost-competitive across a wider range of regions, industries and communities worldwide.

Bloom Energy’s Energy Server platform addresses the evolving needs of customers by offering resilience against extreme weather, mitigating risks from aging grid infrastructure and retiring power plants and easing the integration of renewables amid rapidly rising electricity demand.

Summing Up

Bloom Energy is expected to sustain its performance this quarter, supported by steady demand for the scalable energy solutions. The rapid, online deployment of Energy Servers tailored to customer requirements provides a competitive edge. Additionally, the company’s combustion-free power generation produces no emissions, helping customers advance toward their zero-emission objectives.

Bloom Energy is well-positioned to benefit from growing demand for dependable, clean power, driven by the rapid expansion of AI-focused data centers, crypto-mining operations and the reshoring of manufacturing across the United States.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research