Bloom Energy’s Recurring Revenue Pivot Powers a Record Quarter and a $2.6 Billion AI Data Center Pact

Bloom Energy’s bet on predictable income is paying off in a big way. The fuel-cell specialist inked a ten-year agreement with Nebius Group, a Nvidia-backed AI infrastructure provider, to supply up to 328 megawatts of on-site power for data centers in the U.S. The deal, worth as much as $2.6 billion, moves Bloom away from one-off hardware sales toward a service model: it will own, operate and maintain the solid-oxide fuel cells in exchange for ongoing fees. First installations are slated to go live before the end of 2026.

The arrangement solves a bottleneck that has been plaguing the AI boom: the inability to secure enough grid capacity for sprawling server farms. By generating electricity from natural gas, hydrogen or biogas right at the facility, Nebius avoids the wait for transmission upgrades. The company, which counts Meta as a client and is planning Europe’s largest AI data center in Finland, will book the expense as an operating cost rather than a capital outlay. Of the total capacity, 250 megawatts are already guaranteed under contract.

The shift to recurring revenue dovetails with a quarter that blew past Wall Street expectations. For the three months ended March 2026, Bloom reported revenue of $751 million, a 130% surge year-over-year. Adjusted earnings per share came in at $0.44, handily beating analyst estimates that ranged from $0.12 to $0.13. For the full year, management now sees revenue between $3.4 billion and $3.8 billion, with adjusted EPS landing at the midpoint of $2.05. Net income for the current fiscal year is projected at roughly $475 million.

Should investors sell immediately? Or is it worth buying Bloom Energy?

Perhaps the most striking number in the quarter was operating cash flow. Bloom generated $73.6 million in positive operating cash flow for the first time in its history — a milestone that underscores the improving health of the business. Institutional investors have taken note. They now hold about 77% of outstanding shares, with firms such as NewEdge Advisors and WPG Advisers adding to their positions in recent months.

That institutional enthusiasm stands in contrast to insider activity. Over the past 90 days, executives and board members sold a total of about 525,000 shares worth nearly $100 million. The reporting suggests many of those transactions were tied to tax obligations. Chief Operations Officer Satish Chitoori, for example, disposed of roughly 2,100 shares in mid-May at an average price of $288 under a pre-arranged trading plan designed to cover liabilities from equity awards.

The stock has already more than doubled since late March and trades at roughly $282, giving Bloom a market capitalization of around $80 billion. Year-to-date the shares have gained 186%, while the twelve-month return exceeds 1,180%. The next test arrives with the second-quarter earnings report, when investors will watch to see whether the momentum from the record quarter can be sustained — or whether the valuation has gotten ahead of the fundamentals.

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