ARLINGTON, Va., May 8, 2026, 09:04 EDT
- Roth/MKM bumped Fluence Energy up to Buy from Neutral, hiking the price target as well—now $26, up from $13.
- Fluence reported that order intake had doubled to roughly $2 billion through May 6, pushing its backlog to a new company high.
- Still, revenue fell short of expectations—now, the immediate challenge is execution and hitting project timelines.
Fluence Energy Inc. grabbed the spotlight Friday as Roth/MKM bumped the battery storage name to Buy and hiked its price target to $26—twice its previous view—following a surge in orders and fresh supply deals with two big cloud computing players. Shares, which soared about 40%, were recently trading at $18.97. Roth/MKM had previously rated the stock Neutral and cited the company’s record backlog for the bullish turn, according to .
This matters right now as investors hunt for firms that can tackle the surging energy demands from data centers, particularly those handling artificial intelligence workloads. Fluence reports that its battery energy storage systems—think large batteries that store and discharge electricity for grids or clients—are on offer to hyperscalers, those heavyweight buyers in cloud and internet infrastructure, who need a more reliable power supply as compute needs climb.
The quarter came with plenty of noise. Fluence fell short on revenue—$465 million reported, shy of Wall Street’s $628.46 million target, according to Investing.com. But attention quickly turned to the company’s order book, better margins and guidance. The question now: can Fluence translate signed deals and pipeline demand into revenue in the months ahead? Adjusted EBITDA, stripping out interest, taxes, depreciation, amortization and a few other costs, improved from last year.
Fluence pulled in roughly $464.9 million in second-quarter revenue, a 7.7% climb from the same period last year. GAAP gross margin landed at about 10.0%. The company’s net loss narrowed to $29.2 million from $41.9 million a year earlier. Adjusted EBITDA came in at negative $9.4 million, an improvement over last year’s negative $30.4 million.
The company stuck to its fiscal 2026 outlook, calling for revenue between $3.2 billion and $3.6 billion, with adjusted EBITDA projected at $40 million to $60 million. That target for annual recurring revenue—driven largely by service and contracted software-style sales—remains set at roughly $180 million by the end of the fiscal year.
Chief Executive Julian Nebreda pointed to accelerating orders in recent months and a new record backlog, citing gains from pipeline growth. Fluence reported substantial completion of its first Smartstack delivery and maintained access to its U.S. domestic-content offering.
What stood out in the update: Fluence has landed master supply agreements with two big-name hyperscalers, according to the company. It’s expecting the first order tied to those deals sometime in the third fiscal quarter. On the call, management described the process as involving several review rounds, adding that the fresh agreements now let Fluence compete for upcoming data-center contracts.
Chief Financial Officer Ahmed Pasha told analysts that roughly $80 million in revenue slid into the third quarter due to a customs snag in Vietnam and a lack of loading equipment in Spain. The company has since cleared up both hurdles, with the shipments now in hand, according to the call transcript.
Investors are watching the balance sheet. As of March 31, Fluence reported total liquidity near $900 million, including $412.9 million in cash. The company’s 10-Q listed $5.6 billion in remaining performance obligations, with about half to a bit over half—between 50% and 55%—set to hit revenue within the next year.
Views remain divided. Benzinga’s data: Susquehanna bumped its target up to $25 from $23 on May 8, sticking with a Positive call, but UBS dropped Fluence to Sell back on April 17, aiming for just $8. The tension is clear—demand’s climbing, yet shares have already run.
Competition isn’t going away. Fluence faces pressure from battery giants and storage players like CATL and BYD, both of which have been extending their reach into systems. Shifts in pricing happen fast in this space, but according to management, the latest changes haven’t really altered the level of competition the company is dealing with.
The catch is simple enough: backlog doesn’t equal cash. Fluence notes in its filing that customers are allowed to cancel contracts, push out services, or delay payments—and warns there’s no guarantee backlog converts to revenue or margins as planned. Losses are ongoing for the company, so there’s not much buffer if shipments stall again or margins shrink.
