Morgan Stanley Confident in Bloom Energy's Resilience Despite Oracle Project Delay
Bloom Energy (BE) remains on track for strong performance despite a regulatory setback affecting Oracle’s (ORCL) New Mexico data center project, according to Morgan Stanley. The bank highlighted that Bloom has raised its full-year revenue guidance and reported record second-quarter results with $1.07 billion in revenue—a 166% increase year-over-year—alongside improved gross margins and strong cash generation. Morgan Stanley analyst David Arcaro maintained an Overweight rating on Bloom Energy, citing the company’s ability to redirect equipment shipments due to its broad customer base and backlog of over $8 billion. The firm noted that even if Oracle delays Project Jupiter into 2027, other projects can absorb delayed units without impacting guidance. Bloom's non-GAAP operating income reached $239.6 million in Q2—surpassing expectations by 73%—and the company raised its full-year revenue forecast to between $3.9 billion and $4.2 billion, with a midpoint increase of about $450 million.
Topics: Bloom Energy data centers fuel cells Morgan Stanley Oracle Project Jupiter