Morgan Stanley Confident in Bloom Energy's Resilience Despite Oracle Project Delay
Bloom Energy (BE) reported strong second-quarter results, including record revenue and an upward revision of its full-year guidance. This came despite a setback for one of its major projects: the proposed natural-gas pipeline serving Oracle’s (ORCL) New Mexico data center faced regulatory rejection again. Morgan Stanley analyst David Arcaro maintained his Overweight rating on Bloom Energy with a $310 price target, citing confidence in the company's ability to redirect equipment and fulfill orders under existing agreements. Bloom Energy raised its 2026 revenue guidance from $3.9 billion to $4.2 billion and increased non-GAAP operating-income forecasts by 26%. The firm’s second-quarter results showed a significant increase in cash generation, gross margin improvement, and strong demand across multiple data-center clients beyond Oracle. Morgan Stanley estimates Bloom Energy's equipment backlog at over $8 billion as of Q2. This resilience is attributed to the company's diversified customer base among major U.S. hyperscalers and neocloud operators who have validated its power systems.
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