By Mackenzie Tatananni

FuelCell Energy posted mounting losses and lower revenue in its second fiscal quarter. Shares were rising anyway.

The maker of fuel cell power plants -- which has caught a tailwind from the buildout of data centers -- posted a wider-than-expected quarterly loss of $1.45 a share. Analysts were looking for a loss of 52 cents a share. Revenue fell 5% to $35.6 million, also missing estimates for $40.5 million.

FuelCell's gross loss swelled to $12.9 million compared with $9.4 million in the year-ago period, while its operating loss more than doubled to $77.9 million from $35.8 million last year.

And yet, the stock was rising in premarket trading Monday. FuelCell advanced 5.3%, outpacing futures tracking the S&P 500, which rose 0.7%.

The reaction might seem counterintuitive considering the top-line miss. But Wall Street likely was seizing on other details in the report, such as a 267% sequential surge in FuelCell's sales pipeline, which now totals 4 gigawatts.

Management struck an upbeat tone in spite of the numbers. CEO Jason Few described the quarter as one of "disciplined operational execution across the business," including continued progress on the company's data-center strategy.

FuelCell has scored big from the artificial-intelligence boom. The bulk of its commercial pipeline is anchored in markets for AI and data centers, with Few himself pinpointing that number at close to 80%. The company manufactures standardized 12.5-megawatt power blocks that can be deployed on-site at a data center, allowing developers to bypass the grid.

FuelCell said Monday that its first two carbon capture modules were on their way to the Netherlands. The shipment advances an ongoing collaboration with ExxonMobil Technology and Engineering Company, which the partners extended through December 2026.

More and more investors are backing the stock to capitalize on the AI boom. Despite a three-day dip leading up to the latest earnings report, FuelCell has more than doubled this year. The benchmark S&P 500 has gained 7.9% over the same period.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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June 08, 2026 08:31 ET (12:31 GMT)

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