Overview
BTIG increased its price target on Bloom Energy Corp. (BE) to $165.00 from $145.00 and sustained a Buy rating following the company’s fourth-quarter 2025 earnings release. The revised target implies roughly a 21% upside from the stock’s quoted price of $136.60. The share price has, nonetheless, fallen sharply in the last week, recording a decline of about 9.76%.
Fourth-quarter performance
Bloom Energy delivered non-GAAP operating income of approximately $133 million for Q4 2025, outstripping analyst expectations by around 39%. Revenues came in at about $778 million, roughly 19% higher than consensus estimates. Non-GAAP gross margins improved sequentially by approximately 150 basis points to about 32%.
The company’s revenue momentum remains notable, with trailing twelve-month sales rising by 37.33% to $2.02 billion. The quarter also produced an earnings-per-share result of $0.45, versus a forecast of $0.30, representing a 50% surprise. Revenue in one reported line item was recorded at $777.7 million, compared with an anticipated $640.07 million, a variance described as a 21.5% increase.
2026 guidance and outlook
Management set 2026 revenue guidance in a $3.1 billion to $3.3 billion range. The midpoint of that band sits approximately 25% above Street estimates and equates to year-over-year revenue growth of about 58%. Management also expects gross margins to expand by roughly 200 basis points sequentially, targeting around 32%.
For the same period, the company projected non-GAAP operating income between $425 million and $475 million, a figure about 36% higher than analyst expectations. Management signaled that operating expenses should shrink to about 15% of sales as the business scales.
Analyst commentary
BTIG analyst Gregory Lewis emphasized that demand for prompt power is "broad based" across several customer segments, including data centers as well as commercial and industrial users. He noted that Bloom Energy is "positioned to take advantage thanks to its spare capacity and operating leverage." That positioning has coincided with an extraordinary share-price run, with the stock returning roughly 451% over the last year.
At the same time, valuation metrics show a very high price-to-earnings ratio — approximately 2,060 on the commonly cited measure — reflecting the market’s elevated expectations for continued growth.
Other analyst moves
Following the earnings release and the company’s guidance, BMO Capital raised its price target for Bloom Energy from $136 to $149 while keeping a Market Perform rating. That change followed the company’s year-end 2025 earnings call, during which management’s 2026 guidance surpassed analyst expectations.
Key takeaways
- Bloom Energy surpassed expectations in Q4 2025, with non-GAAP operating income near $133 million and revenue around $778 million, both well above consensus.
- The company published 2026 guidance that implies strong revenue growth - a midpoint roughly 25% above analyst projections - and a significant increase in expected non-GAAP operating income.
- Analysts responded with higher price targets: BTIG raised its target to $165 and retained a Buy, while BMO Capital moved its target to $149 and maintained Market Perform.
Risks and uncertainties
- Valuation risk - The shares trade at an extremely elevated P/E ratio of about 2,060, which could leave the stock vulnerable if growth decelerates.
- Market volatility - Despite strong results and guidance, the stock recorded a near 9.76% decline in the most recent week, indicating potential sensitivity to short-term market sentiment.
- Execution and scaling risk - Management expects operating expenses to fall to roughly 15% of sales as the company scales; any shortfall in operating leverage could pressure margins and operating-income targets.
Context and implications
Bloom Energy’s quarter combined strong top-line growth, margin improvement and aggressive forward guidance, prompting some analysts to upgrade targets and reinforcing a narrative of demand across multiple end markets such as data centers and industrial users. The firm’s guidance points to an accelerated revenue trajectory and higher operating income, which underpins the bullish revisions from some research desks.
At the same time, the stock’s lofty valuation and recent share-price weakness underscore market uncertainty about how investors will price rapid growth versus execution and margin risks.
Bottom line
BTIG’s move to $165 reflects confidence in Bloom Energy’s near-term growth and operating leverage based on the company’s Q4 results and 2026 guidance, while BMO’s adjustment to $149 signals more cautious upside despite better-than-expected performance. Investors will likely focus on execution against the 2026 targets and whether margins and operating expenses track the management plan.