Shares of FuelCell Energy Inc. (NASDAQ:FCEL) are trading higher Friday morning, attempting a modest rebound following recent selloffs as investors evaluate long-term AI data center power demand against near-term gross margin pressure.
- FuelCell Energy stock is showing upward movement. Why are FCEL shares climbing?
Macro Rate Fears Weigh on Clean Energy Equities
The uptick comes despite a challenging macroeconomic backdrop for high-growth tech and clean energy equities. August’s hotter-than-expected U.S. payrolls report increased expectations that the Federal Reserve could raise interest rates at its next meeting.
A stronger U.S. dollar and elevated global borrowing costs continue to reduce investor appetite for capital-intensive growth companies, adding friction to clean energy project financing.
Q3 Results Impacted by Fit Energy Contract Charges
The recent stock volatility follows FuelCell’s third-quarter fiscal 2026 financial report released on September 2. Revenue fell 29% year-over-year to $33.0 million, missing Wall Street estimates of $38.8 million, while net loss expanded to $0.64 per share.
Performance was weighed down by a $24.5 million gross loss, which included $17 million in charges tied to Phase 0 of its Capital Equipment Purchase Agreement (CEPA) with Fit Energy, as temporary production costs at lower volumes exceeded initial contractual pricing.
Data Center Demand and Cash Reserves Underpin Recovery
Despite near-term margin drag, buyer interest is supported by expanding opportunities in AI infrastructure power. FuelCell reported a committed backlog of $1.3 billion and an awarded capacity backlog of $2.4 billion, bringing total backlog to $3.6 billion, with data center proposals representing roughly 97% of its active project pipeline.
Supported by $737.3 million in total cash and restricted cash, management is scaling its Torrington manufacturing facility to a 100-MW annualized production rate by October 2026 to normalize unit economics and support its multi-gigawatt pipeline.
FCEL Stock Edges Higher Friday
FCEL Price Action: FuelCell Energy shares were up 2.69% at $16.01 during premarket trading on Friday, according to Benzinga Pro data.
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