Fuel Cell Tax Perk Could Supercharge Bloom Energy In 2026, Says JPMorgan

JPMorgan analyst Mark Strouse upgraded Bloom Energy Corp BE to Overweight from Neutral, raising the price forecast from $18 to $33.

According to Strouse, the unexpected eligibility of fuel cells for 48E tax credits under the finalized OBBB legislation could lead to upside in revenue and margin expectations starting in fiscal year 2026, outpacing the 19% year-over-year increase implied in the midpoint of FY25 guidance.

The uplift will likely come from better pricing power with data center clients and higher volumes from more cost-sensitive customers.

Also Read: Conagra Embraces Bloom Energy’s Fuel Cells To Power Ohio Operations

Improved factory utilization and stronger pricing could also lift product margins.

With gas turbine prices and lead times still high, the added incentives may help convert undecided Bloom Energy customers, potentially boosting order volumes.

Strouse also sees Bloom Energy's second-quarter commentary to be more positive than that of its peers, now that the OBBB is finalized. However, some uncertainty remains around safe harbor provisions following the July 7 Executive Order, which could dampen investor sentiment in solar and wind.

Strouse projects FY26 pro forma EBITDA of $420 million on $2.21 billion in revenue, compared to $275 million on $2.04 billion this year (Street: $319 million/$2.09 billion).

However, risks remain. Bloom Energy has yet to name a permanent CFO, and a new hire could shift priorities toward growth over profitability, the analyst warns.

Also, with the 48E credits starting in January 2026, some customers might defer FY25 orders to benefit from the incentive — despite guidance being issued under the assumption of no tax benefit.

BE Price Action: Bloom Energy shares are trading higher by 18.30% to $28.77 at publication on Wednesday.

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