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Plug Power Surges 120% in a Year: Should You Buy the Stock or Wait?
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Key Takeaways
PLUG's Q1 2026 revenues rose 22%, with electrolyzer product revenues soaring about 345% year over year.
Plug Power has more than 320 MW deployed and an $8B plus project pipeline across energy markets.
PLUG posted a negative 13% gross margin and $150M operating cash outflow in first-quarter 2026.
Plug Power Inc. (PLUG - Free Report) shares have surged 120% in the past year, outpacing the industry and the S&P 500, which have returned 74.8% and 25.9%, respectively. In comparison, the company’s peers like FuelCell Energy, Inc. (FCEL - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) have gained 156.5% and declined 41.6%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $2.86 in the last trading session, the stock is trading below its 52-week high of $4.58 but significantly higher than its 52-week low of $1.03. PLUG is currently trading below its 50-day moving average but above its 200-day moving average, indicating a volatile trend in the share price.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Factors Favoring Plug Power
Plug Power’s results continue to show signs of improvement in the first quarter of 2026. After witnessing growth of 12.9% in 2025, PLUG’s revenues increased 22% year over year in the quarter. Revenues were driven by impressive demand for its electrolyzer product line and volume increase in hydrogen fuel sales. In the first quarter, revenues from the electrolyzer product line skyrocketed approximately 345% on a year-over-year basis.
This solid growth was supported by the growing popularity of the company’s GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors. The company has more than 320 MW of electrolyzer capacity deployed worldwide and more than $8 billion in project pipeline across industrial and energy applications. With strong expertise in providing and installing electrolyzers, Plug Power is well-positioned to capitalize on the increasing demand for renewable fuels and green ammonia globally.
Last month, PLUG secured a contract for supplying 30 MW of GenEco PEM electrolyzers for the industrial hydrogen production plant located in Barrow-in-Furness, Cumbria. The project will deploy PLUG’s six 5 MW GenEco PEM electrolyzers for the production of green hydrogen. Also, in April, Plug Power clinched one of the largest electrolyzer project deals in its history. The company received the Front-End Engineering Design (FEED) contract from Hy2gen Canada to deliver a 275 MW GenEco PEM electrolyzer system for the latter’s “Courant” decarbonized ammonium nitrate project.
PLUG’s Project Quantum Leap is also enabling it to boost its cash flow and reduce the cash burn rate. As part of the project, it is benefiting from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.
Near-Term Concerns Prevail
The major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 13% in first-quarter 2026. Meanwhile, its operating cash outflow totaled $150 million in the first quarter.
Also, PLUG’s weak liquidity position remains a concern. Exiting first-quarter 2026, its cash equivalents totaled $223.2 million, reflecting a decrease of 39% from 2025-end. PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Flux Power.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s 2026 bottom line has decreased in the past 60 days. However, the figure indicates year-over-year growth of 76.8%. In the same period, the consensus mark for the 2027 bottom line has increased, reflecting year-over-year growth of 52.3%.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 6.81X against the industry average of 0.01X. In comparison, FuelCell Energy and Flux Power are trading at (3.96X) and (3.76X), respectively.
Final Take
PLUG’s growing footprint in the green hydrogen market, solid pipeline of projects, strong product portfolio and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including negative gross margins and cash outflows, are likely to continue impacting this Zacks Rank #3 (Hold) company’s near-term performance.
View the Zacks #1 Rank List
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Plug Power Surges 120% in a Year: Should You Buy the Stock or Wait?
Key Takeaways
Plug Power Inc. (PLUG - Free Report) shares have surged 120% in the past year, outpacing the industry and the S&P 500, which have returned 74.8% and 25.9%, respectively. In comparison, the company’s peers like FuelCell Energy, Inc. (FCEL - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) have gained 156.5% and declined 41.6%, respectively, over the same time frame.
PLUG Outperforms Industry & S&P 500
Image Source: Zacks Investment Research
Closing at $2.86 in the last trading session, the stock is trading below its 52-week high of $4.58 but significantly higher than its 52-week low of $1.03. PLUG is currently trading below its 50-day moving average but above its 200-day moving average, indicating a volatile trend in the share price.
PLUG Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Factors Favoring Plug Power
Plug Power’s results continue to show signs of improvement in the first quarter of 2026. After witnessing growth of 12.9% in 2025, PLUG’s revenues increased 22% year over year in the quarter. Revenues were driven by impressive demand for its electrolyzer product line and volume increase in hydrogen fuel sales. In the first quarter, revenues from the electrolyzer product line skyrocketed approximately 345% on a year-over-year basis.
This solid growth was supported by the growing popularity of the company’s GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors. The company has more than 320 MW of electrolyzer capacity deployed worldwide and more than $8 billion in project pipeline across industrial and energy applications. With strong expertise in providing and installing electrolyzers, Plug Power is well-positioned to capitalize on the increasing demand for renewable fuels and green ammonia globally.
Last month, PLUG secured a contract for supplying 30 MW of GenEco PEM electrolyzers for the industrial hydrogen production plant located in Barrow-in-Furness, Cumbria. The project will deploy PLUG’s six 5 MW GenEco PEM electrolyzers for the production of green hydrogen.
Also, in April, Plug Power clinched one of the largest electrolyzer project deals in its history. The company received the Front-End Engineering Design (FEED) contract from Hy2gen Canada to deliver a 275 MW GenEco PEM electrolyzer system for the latter’s “Courant” decarbonized ammonium nitrate project.
PLUG’s Project Quantum Leap is also enabling it to boost its cash flow and reduce the cash burn rate. As part of the project, it is benefiting from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.
Near-Term Concerns Prevail
The major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 13% in first-quarter 2026. Meanwhile, its operating cash outflow totaled $150 million in the first quarter.
Also, PLUG’s weak liquidity position remains a concern. Exiting first-quarter 2026, its cash equivalents totaled $223.2 million, reflecting a decrease of 39% from 2025-end. PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Flux Power.
PLUG’s Estimate Revisions
The Zacks Consensus Estimate for PLUG’s 2026 bottom line has decreased in the past 60 days. However, the figure indicates year-over-year growth of 76.8%. In the same period, the consensus mark for the 2027 bottom line has increased, reflecting year-over-year growth of 52.3%.
Image Source: Zacks Investment Research
Valuation
From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 6.81X against the industry average of 0.01X. In comparison, FuelCell Energy and Flux Power are trading at (3.96X) and (3.76X), respectively.
Final Take
PLUG’s growing footprint in the green hydrogen market, solid pipeline of projects, strong product portfolio and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including negative gross margins and cash outflows, are likely to continue impacting this Zacks Rank #3 (Hold) company’s near-term performance.
While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.