Bloom Energy (BE +2.73%) only provides a dollar figure for its backlog once per year. At the start of 2026, the backlog was $20 billion. That's a huge figure that's likely even higher today. In the company's second-quarter update, Bloom noted that it has new customers that aren't yet in the backlog figure. And that its backlog is growing faster than its revenues!
But there's an important nuance to consider about the backlog when evaluating Bloom Energy as an investment.
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What's in Bloom Energy's backlog?
As a business, Bloom Energy is incredibly well-positioned right now. It makes hydrogen fuel cells that can provide off-grid power. The demand for electricity from the artificial intelligence build-out is straining the grid's capacity to deliver power, with companies increasingly turning to alternatives like Bloom Energy's fuel cells.
AI-driven demand is a key reason why the backlog rose to $20 billion at the start of 2026. But there's a nuance in that number. The company's product backlog rose 140% year over year, highlighting the strong demand for its products. Only that backlog was just $6 billion of the total backlog. Selling new fuel cells is clearly a very important factor to monitor, but it isn't the long-term growth engine investors may believe it is.
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Key Data Points
The rest of the backlog, or roughly $14 billion at the start of 2026, was related to services. Every new fuel cell sold comes along with a service contract. That revenue is annuity-like, and the service backlog grows with each new fuel cell sold. This is the true flywheel of the business, with the company's services business profitable since 2024, even though the company itself wasn't profitable in 2024 or 2025 due to losses in other parts of the operation.
Bloom Energy: Everything appears to be working together now
That said, AI demand appears to have changed the dynamic in 2026. The company was profitable in the first and second quarters of the year, with increasing demand suggesting that future quarters will be strong as well. And each new fuel cell sold augments the services backlog, which improves Bloom Energy's long-term outlook.
The only problem is that investors appear to be pricing in a lot of good news already. The stock is up nearly 500% over the past year as of this writing, including the recent 35% drawdown. Bloom Energy has an attractive story, but only the most aggressive growth investors should consider it. And, even then, you'll need to believe strongly in the AI growth story to justify buying after such a rapid and large price move.
