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FLNC or BE: Which Alternative Energy Stock Is Worth Buying Now?
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Key Takeaways
Bloom Energy gains the edge on stronger price performance and a robust earnings surprise history.
BE raised 2026 revenue guidance to $3.9-$4.2B as first-half revenues more than doubled to $1.8B.
Fluence Energy cut fiscal 2026 revenue guidance to about $2.4B amid manufacturing delays.
Fluence Energy (FLNC - Free Report) provides battery energy storage systems, software and services for renewable energy and grid applications. Bloom Energy (BE - Free Report) provides on-site, non-combustion solid oxide fuel cell technology that delivers low-carbon electricity around the clock for data centers, microgrids and industrial facilities. Both stocks belong to the Zacks Alternate Energy - Other industry.
Given this backdrop, it is useful to examine which stock offers the more attractive investment opportunity.
The Case for FLNC
Last month, Fluence Energy reported a wider-than-expected loss for the third quarter of fiscal 2026 (ended June 30, 2026). Its revenues also lagged expectations. FLNC reported earnings of a cent per share in the year-ago quarter. Revenues declined year over year as well, reflecting the downbeat performance.
The latest earnings miss is the second such bottom-line underperformance for the company in the past four quarters. Its earnings surpassed expectations once and reported in-line earnings on the other occasion. The average earnings miss is 114.5%, reflecting the overall bleak scenario.
Recently, FLNC revised its fiscal 2026 outlook primarily due to manufacturing delays. The company now expects fiscal 2026 revenues of approximately $2.4 billion, down from the previous guidance midpoint of about $3 billion. Fluence Energy also projects an adjusted EBITDA loss of nearly $200 million, substantially wider than its earlier forecast midpoint of a loss of around $10 million. Persistent supply-chain challenges are affecting U.S. production, resulting in the downbeat guidance.
On the brighter side, demand for Fluence Energy’s products remains strong in both domestic and international markets, while its international supply chain continues to operate effectively. However, delays in ramping up production at the company’s contract manufacturing facility in Houston have constrained its ability to convert demand into completed deliveries and revenues.
Fluence Energy is taking steps to restructure its operational organization and improve coordination across supply-chain planning, manufacturing and product delivery. Its contract manufacturing partner has also implemented corrective measures, which have already contributed to higher daily production levels. These initiatives are intended to strengthen execution and establish a more reliable operating foundation for fiscal 2027.
The company’s immediate priorities include converting its backlog into revenues and cash while improving working-capital efficiency. Fluence Energy aims to achieve neutral to positive operating cash flow in fiscal 2027, allowing it to support backlog execution without relying on external capital. The company is expected to report a detailed fiscal 2027 business plan and updated financial outlook when it releases the fiscal 2026 results later this year.
We note that the rapid build-out of AI data centers is a tailwind for Fluence Energy. AI facilities require highly reliable, flexible power systems capable of handling sudden fluctuations in electricity demand.
The Case for BE
Bloom Energy is well positioned to benefit from rising demand for reliable, lower-carbon on-site power. Its solid-oxide fuel cell technology generates electricity efficiently and helps customers rely less on increasingly strained power grids.
The company is expanding its use of microgrids to deliver dependable on-site electricity when grid access is unavailable or delayed. Its AlwaysON Microgrid is designed to maintain power during grid outages, and Bloom Energy is deploying fuel-cell systems for an islanded microgrid at MiTAC Computing’s Fremont manufacturing facility.
These solutions can help manufacturers safeguard production, expand capacity sooner and reduce their dependence on utility expansion schedules. Microgrids are becoming increasingly important as a source of reliable, flexible on-site power.
Rising demand from AI data centers and wider adoption of distributed energy solutions are providing substantial support for Bloom Energy. The company and Brookfield expanded their strategic partnership, raising planned investment in AI-related power infrastructure fivefold, from $5 billion to $25 billion. This increase reflects the sharp growth in electricity demand driven by the global expansion of hyperscale AI data centers.
The financial impact is becoming evident. Revenues more than doubled year over year to $1.8 billion in the first half of 2026, with AI data centers emerging as a key growth driver. Bloom Energy raised its 2026 revenue guidance to $3.9-$4.2 billion and expects a non-GAAP gross margin of about 34%, suggesting that strong revenue growth is being accompanied by healthy profitability. The company projects non-GAAP earnings per share of $2.55-$2.85. The Zacks Consensus Estimate stands at $2.70 per share, the midpoint of that range.
BE has a solid earnings surprise history. Its earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 164.1%.
On the price front, Bloom Energy, due to rising demand for its products, has performed much better than Fluence Energy on a year-to-date basis.
YTD Price Comparison
Image Source: Zacks Investment Research
FLNC Outscores on the Valuation Front
FLNC is trading at a forward sales multiple of 0.37X, comparing favorably to BE’s 13.89X. Both companies have a Value Score of F currently.
Image Source: Zacks Investment Research
Conclusion
Agreed that Fluence Energy looks more attractive from the valuation viewpoint, but the stronger price performance and the robust earnings surprise history tilt the scales in favor of Bloom Energy.
Moreover, growing interest in hydrogen, favorable clean-energy policies and further development of Bloom Energy’s electrolyzer platform could improve its long-term growth prospects. Rising power demand from data centers and corporations seeking reliable, cleaner energy solutions may create additional opportunities for the company.
On the other hand, fears related to battery oversupply, project delivery delays, the guidance cut and macroeconomic tensions are weighing on Fluence Energy, resulting in its dismal price performance.
On the basis of our write-up, we can safely say that BE emerges as the winner in this face-off of Alternate Energy stocks and is worth betting on now. BE currently sports a Zacks Rank #1 (Strong Buy), whereas FLNC carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
FLNC or BE: Which Alternative Energy Stock Is Worth Buying Now?
Key Takeaways
Fluence Energy (FLNC - Free Report) provides battery energy storage systems, software and services for renewable energy and grid applications. Bloom Energy (BE - Free Report) provides on-site, non-combustion solid oxide fuel cell technology that delivers low-carbon electricity around the clock for data centers, microgrids and industrial facilities. Both stocks belong to the Zacks Alternate Energy - Other industry.
Given this backdrop, it is useful to examine which stock offers the more attractive investment opportunity.
The Case for FLNC
Last month, Fluence Energy reported a wider-than-expected loss for the third quarter of fiscal 2026 (ended June 30, 2026). Its revenues also lagged expectations. FLNC reported earnings of a cent per share in the year-ago quarter. Revenues declined year over year as well, reflecting the downbeat performance.
The latest earnings miss is the second such bottom-line underperformance for the company in the past four quarters. Its earnings surpassed expectations once and reported in-line earnings on the other occasion. The average earnings miss is 114.5%, reflecting the overall bleak scenario.
Fluence Energy Price and EPS Surprise
Fluence Energy, Inc. price-eps-surprise | Fluence Energy, Inc. Quote
Recently, FLNC revised its fiscal 2026 outlook primarily due to manufacturing delays. The company now expects fiscal 2026 revenues of approximately $2.4 billion, down from the previous guidance midpoint of about $3 billion. Fluence Energy also projects an adjusted EBITDA loss of nearly $200 million, substantially wider than its earlier forecast midpoint of a loss of around $10 million. Persistent supply-chain challenges are affecting U.S. production, resulting in the downbeat guidance.
On the brighter side, demand for Fluence Energy’s products remains strong in both domestic and international markets, while its international supply chain continues to operate effectively. However, delays in ramping up production at the company’s contract manufacturing facility in Houston have constrained its ability to convert demand into completed deliveries and revenues.
Fluence Energy is taking steps to restructure its operational organization and improve coordination across supply-chain planning, manufacturing and product delivery. Its contract manufacturing partner has also implemented corrective measures, which have already contributed to higher daily production levels. These initiatives are intended to strengthen execution and establish a more reliable operating foundation for fiscal 2027.
The company’s immediate priorities include converting its backlog into revenues and cash while improving working-capital efficiency. Fluence Energy aims to achieve neutral to positive operating cash flow in fiscal 2027, allowing it to support backlog execution without relying on external capital. The company is expected to report a detailed fiscal 2027 business plan and updated financial outlook when it releases the fiscal 2026 results later this year.
We note that the rapid build-out of AI data centers is a tailwind for Fluence Energy. AI facilities require highly reliable, flexible power systems capable of handling sudden fluctuations in electricity demand.
The Case for BE
Bloom Energy is well positioned to benefit from rising demand for reliable, lower-carbon on-site power. Its solid-oxide fuel cell technology generates electricity efficiently and helps customers rely less on increasingly strained power grids.
The company is expanding its use of microgrids to deliver dependable on-site electricity when grid access is unavailable or delayed. Its AlwaysON Microgrid is designed to maintain power during grid outages, and Bloom Energy is deploying fuel-cell systems for an islanded microgrid at MiTAC Computing’s Fremont manufacturing facility.
These solutions can help manufacturers safeguard production, expand capacity sooner and reduce their dependence on utility expansion schedules. Microgrids are becoming increasingly important as a source of reliable, flexible on-site power.
Rising demand from AI data centers and wider adoption of distributed energy solutions are providing substantial support for Bloom Energy. The company and Brookfield expanded their strategic partnership, raising planned investment in AI-related power infrastructure fivefold, from $5 billion to $25 billion. This increase reflects the sharp growth in electricity demand driven by the global expansion of hyperscale AI data centers.
The financial impact is becoming evident. Revenues more than doubled year over year to $1.8 billion in the first half of 2026, with AI data centers emerging as a key growth driver. Bloom Energy raised its 2026 revenue guidance to $3.9-$4.2 billion and expects a non-GAAP gross margin of about 34%, suggesting that strong revenue growth is being accompanied by healthy profitability. The company projects non-GAAP earnings per share of $2.55-$2.85. The Zacks Consensus Estimate stands at $2.70 per share, the midpoint of that range.
BE has a solid earnings surprise history. Its earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 164.1%.
Bloom Energy Corporation Price and EPS Surprise
Bloom Energy Corporation price-eps-surprise | Bloom Energy Corporation Quote
Price Performance
On the price front, Bloom Energy, due to rising demand for its products, has performed much better than Fluence Energy on a year-to-date basis.
YTD Price Comparison
FLNC Outscores on the Valuation Front
FLNC is trading at a forward sales multiple of 0.37X, comparing favorably to BE’s 13.89X. Both companies have a Value Score of F currently.
Conclusion
Agreed that Fluence Energy looks more attractive from the valuation viewpoint, but the stronger price performance and the robust earnings surprise history tilt the scales in favor of Bloom Energy.
Moreover, growing interest in hydrogen, favorable clean-energy policies and further development of Bloom Energy’s electrolyzer platform could improve its long-term growth prospects. Rising power demand from data centers and corporations seeking reliable, cleaner energy solutions may create additional opportunities for the company.
On the other hand, fears related to battery oversupply, project delivery delays, the guidance cut and macroeconomic tensions are weighing on Fluence Energy, resulting in its dismal price performance.
On the basis of our write-up, we can safely say that BE emerges as the winner in this face-off of Alternate Energy stocks and is worth betting on now. BE currently sports a Zacks Rank #1 (Strong Buy), whereas FLNC carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.