Bloom Energy’s Fourth-Quarter Revenue Jumps as Data Centers Seek On-Site Power

Bloom Energy Corporation recorded a sharp increase in fourth-quarter 2025 revenue as data center operators turned to the company’s solid-oxide fuel cell systems to secure additional electricity, according to information disclosed in ClearBridge Investments’ Small Cap Growth Strategy letter to clients. The report, released in late March 2026, indicates that demand from power-constrained data centers helped make Bloom Energy one of the strategy’s best-performing positions during the period.

ClearBridge, an asset manager focused on long-term, active equity portfolios, said its small-cap growth strategy underperformed the Russell 2000 Growth Index in the final quarter of 2025 after outperforming during the first nine months of the year. Technology earnings disappointments and a rebound in biotechnology shares contributed to the strategy’s relative decline. Within its industrials allocation, however, Bloom Energy remained a significant bright spot as customers in the digital infrastructure sector sought alternatives to the traditional electric grid.

Bloom Energy designs and manufactures solid-oxide fuel cell platforms that generate electricity on site using natural gas, biogas or hydrogen as feedstock. The systems are promoted as providing lower emissions and higher reliability than grid power, attributes that have attracted data center operators facing stringent uptime requirements and rising energy consumption. According to the U.S. Energy Information Administration, electricity use by American data centers continues to climb, intensifying the search for dependable, supplemental power sources.

The investor letter noted that Bloom Energy produced revenue of $777.7 million in the fourth quarter, a 35.9 percent year-over-year increase. While the correspondence did not break out revenue by end market, it emphasized that data center demand was an important driver of growth.

Market performance mirrored the operational gains. Bloom Energy’s shares closed at $133.52 on 26 March 2026, reflecting a 556.76 percent advance over the prior 12 months. The stock, however, retreated 14.23 percent during the most recent one-month period, underscoring the volatility common to high-growth, small-capitalization names. Based on the closing price, the company’s market capitalization stood at approximately $37.46 billion.

Institutional interest in Bloom Energy also expanded. ClearBridge cited public data showing that 88 hedge fund portfolios held the stock at the end of the fourth quarter, up from 64 in the preceding three-month period. Although Bloom Energy does not appear on a widely followed list of the 40 most popular equities among hedge funds heading into 2026, the increase suggests broader recognition of the company’s positioning in decentralized power generation.

ClearBridge’s commentary on the broader market observed that 2025 was marked by narrow leadership concentrated in a small group of large-capitalization companies, limiting the ability of many small-cap growth portfolios to outpace large-cap benchmarks. Even so, the manager argued that early signs of market broadening emerged late in the year, creating what it regards as a supportive backdrop for small-cap growth stocks in 2026. In that context, holdings tied to data center infrastructure and alternative energy, such as Bloom Energy, have been highlighted as beneficiaries of secular trends.

The letter did not provide detailed earnings metrics beyond revenue, nor did it update full-year guidance. However, it underscored that Bloom Energy’s installations aim to mitigate grid bottlenecks that can delay or limit data center expansion. With hyperscale and colocation facilities experiencing escalating compute loads from artificial intelligence applications, consistent access to power has become a central consideration for operators.

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ClearBridge reaffirmed its long-term investment thesis for Bloom Energy, pointing to the company’s technology track record and a business model that captures both upfront equipment sales and ongoing service revenue. The manager also referenced policy incentives that favor low-carbon generation, though it offered no specific forecast of regulatory impacts on Bloom Energy’s earnings trajectory.

While ClearBridge continues to hold Bloom Energy, the investor letter mentioned that other artificial intelligence–related companies may present more attractive short-term risk-reward profiles. No individual AI names were specified in the excerpt provided.

Looking ahead, the investment manager said it remains constructive on small-cap growth equities after several years of relative underperformance. Key themes identified for 2026 include on-shoring of manufacturing activity, increased deployment of clean energy technologies and the ongoing digitization of the economy, all of which could sustain demand for decentralized power solutions such as those offered by Bloom Energy.

The ClearBridge Small Cap Growth Strategy letter did not disclose any portfolio weightings, purchase prices or target valuations for Bloom Energy. Likewise, the document did not detail the company’s pipeline for new product introductions or geographic expansion plans. Nonetheless, ClearBridge characterized the holding as “longstanding,” indicating a multi-year presence in the strategy.

Bloom Energy has scheduled its next earnings release for later in 2026, at which time investors are expected to receive updated guidance on revenue, margins and order backlog. Until then, the company’s performance will likely remain tied to the pace of data center construction and the broader adoption of on-site generation technologies.