Why Bloom Energy Stock Is Crashing Today
Key Points
Bloom Energy reported Q3 2026 financial results yesterday after the market closed.
The company achieved a new high-water mark for quarterly revenue.
Analysts slashed their price targets on Bloom Energy stock.
Ending the week on a bearish note, Bloom Energy (NYSE:BE) stock is powering down. The company reported third-quarter 2026 financial results yesterday after the market closed, which appear to have left investors unimpressed. Providing more fodder for the bears, two firms have slashed their expectations on the hydrogen stock.
As of 1:21 p.m. ET, Bloom Energy shares are down 12.9%.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
Operating cash flow plummets to negative $27.1 million
In Q3 2026, Bloom Energy reported cash from operations of negative $27.1 million, a notable decrease from the positive $226.4 million reported in Q2 2026 and the positive $19.7 million reported in Q3 2025.
The company's sharp turnaround in operating cash flow belies the strong income statement. In Q3 2026, Bloom Energy reported a new record for quarterly revenue: $1.24 billion, a 138.1% year-over-year increase. Similarly, the company reported diluted earnings per share (EPS) of $0.78, improving dramatically from the negative $0.10 it reported during the same period last year.
In the wake of Bloom Energy's financial report, Roth Capital analyst Chip Moore slashed the price target to $230 from $260, maintaining a neutral rating. Similarly, JPMorgan cut its price target to $292 from $314, and BTIG lowered its price target to $250 from $295. While analysts had different reasons for reducing the price targets, one common factor was the stock's high valuation. Currently, Bloom shares are trading at 132.8 times trailing earnings.
Is Bloom Energy stock a buy after powering down today?
While operating cash flow turned negative in the last quarter, it's hardly a reason for investors to run for the hills. The company has distinguished itself among other hydrogen stocks in its ability to consistently generate operating cash flow, the recent quarter notwithstanding. For now, the better course of action for current shareholders would be to sit back and see what the company reports next quarter.
JPMorgan Chase is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and JPMorgan Chase. The Motley Fool has a disclosure policy.