Bloom Energy vs. NuScale Power: Which Energy Innovator Stock Is a Better Buy in 2026?

Bloom Energy vs. NuScale Power: Which Energy Innovator Stock Is a Better Buy in 2026?

Brendan Coffey, The Motley Fool

Fri, August 28, 2026 at 6:03 PM GMT+3 7 min read

As artificial intelligence and data centers drive massive demand for electricity, investors are choosing between two very different power providers. Bloom Energy Corp (NYSE:BE) and NuScale Power Corp (NYSE:SMR) offer unique solutions for this energy transition.

Bloom Energy provides on-site power systems using solid oxide fuel cell technology, while NuScale Power is developing small modular reactors for carbon-free nuclear energy. Choosing between them requires weighing established revenue against high-potential innovation.

The case for Bloom Energy

Bloom Energy manufactures and installs onsite power systems known as Bloom Energy Servers, which provide clean and reliable electricity for large commercial users. The company has pivoted aggressively toward serving the artificial intelligence infrastructure and semiconductor manufacturing sectors, where stable power is a critical requirement. Notable strategic partners include American Electric Power Co (NASDAQ:AEP) and Brookfield Corp(NYSE:BN), which recently established a $5 billion framework to finance clean energy deployments.

In FY 2025, revenue reached more than $2 billion, representing approximately 37% growth over the prior year. Despite this strong top-line performance, the company reported a net loss of roughly $88.4 million. This results in a negative net margin of about 4.4%, which is a measure of how much profit a company retains from its total sales. This loss was significantly narrower than the prior year, suggesting a move toward profitability as the company scales its operations among industrial stocks.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 3.9x. This ratio measures a company's total debt relative to the value of its shareholders' equity, and a higher number indicates more financial leverage. The company maintains what is called the current ratio of roughly 6x, which shows it has six times more short-term assets than short-term liabilities. Free cash flow for the year reached roughly $57.2 million. Free cash flow equals cash flow from operations minus capital expenditures, and a positive result means the business generated more cash than it spent on equipment.

The case for NuScale Power

NuScale Power is working to commercialize proprietary small modular reactor technology, which aims to provide carbon-free nuclear power at a smaller scale than traditional plants. The company focuses on global markets for electricity generation, data centers, and hydrogen production. Currently, NuScale has not entered into any binding contracts for the delivery of its power modules. It relies heavily on strategic partners like ENTRA1 and the Tennessee Valley Authority (NYSE:TVC) to move its projects from the design phase toward actual deployment.

During FY 2025, the company generated revenue of approximately $31.5 million, which was a decrease of nearly 15% from the previous year. NuScale reported a wider net loss of close to $356 million for the same period. This led to a deeply negative net margin of approximately 1,130.3%, indicating that operating costs and research spending far exceed current sales. Because the company is still in the early stages of commercializing its nuclear technology, these heavy losses are expected as it navigates regulatory hurdles.

As of its December 2025 balance sheet, the company had a debt-to-equity ratio of 0.0x, meaning it carried no total debt relative to its equity. Its sold-called current ratio was approximately 4.3x, which suggests a healthy ability to meet its immediate financial obligations. However, free cash flow for FY 2025 was negative at more than $460 million. This negative cash flow reflects the high capital intensity of developing nuclear technology without having a finished product generating recurring revenue for the business.

Risk profile comparison

Bloom Energy faces risks related to its status in the emerging hydrogen and distributed energy markets, where demand may not meet expectations. The company is currently dealing with multiple securities class action lawsuits filed in 2026. These suits allege that Bloom made misrepresentations regarding its supply chain, specifically concerning the sourcing of materials linked to China. Furthermore, the business relies heavily on government incentive programs and faces intense competition from established utilities and other modular power providers.

NuScale Power carries significant risk because it has no material revenue and has not delivered a single power module to a customer. The company is also involved in 2026 class action litigation regarding the qualifications of its partner, ENTRA1. Financial stability is a concern due to recurring net losses and large cash payment obligations that must be met even if no revenue-generating contracts are signed. NuScale also faces competition from well-funded modular reactor developers based in Russia and China.

Valuation comparison

Bloom Energy offers an established revenue base and a calculable Forward P/E, while NuScale Power remains a pre-revenue speculative play with a much higher sales multiple.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Bloom Energy's core product is its Energy Server, a stand-alone power source for commercial and industrial customers. The Energy Server is based on solid oxide fuel cell technology and runs on natural gas, biogas, or hydrogen. Natural gas has historically been the dominant fuel, despite Bloom being heralded as a clean energy business in its early days.

The business aims to lower its cost of production by about 10% a year to attract more customers (its main markets are the U.S. and Korea). The AI datacenter boom is a tailwind for Bloom, which should see revenue leap 85% to $3.75 billion in fiscal 2026. That has Wall Street expecting a swing to net income of about $440 million.

Turning to NuScale Power, the U.S. federal government has been encouraging the development of small nuclear reactor designs since the Biden administration, with the goal of smaller, easier, and cheaper to build reactors that potentially could bring power to places currently relying on trucked-in diesel, such as remote Alaskan towns and U.S. military bases.

There are other companies developing small modular reactors, but NuScale has some advantages. NuScale remains the only SMR company to have received design certification from the U.S. Nuclear Regulatory Commission, including standard design approvals for two of its designs. The NRC's design certification is the global gold standard for nuclear safety, and getting it takes years. NuScale's reactors will operate on standard low-enriched uranium, a proven fuel source available today from established suppliers worldwide. Other designs use a more refined form of uranium called HALEU, which offers some advantages but is less widely available on the market.

But significant sales for NuScale are years away. Wall Street sees revenue ticking down to the $20 million range this year, with wide losses. Bloom is less exciting and has plenty of fuel cell competitors, but it has an established revenue base, and AI data center demand could goose the business sooner than later. Go with Bloom Energy.

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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy and Brookfield Corporation. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.

Bloom Energy vs. NuScale Power: Which Energy Innovator Stock Is a Better Buy in 2026? was originally published by The Motley Fool