After the market closed tonight, Fluence Energy (NASDAQ: FLNC) dropped its fiscal Q2 2026 results, and the earnings report is a study in contrasts. Revenue badly missed, but the bottom line beat, backlog hit a record, and the company landed master supply agreements with two hyperscalers. Shares had already closed up 6.86% at $13.56 before the release.
They’re up another 27% in after-hours trading. Let’s dive into why Fluence shares are soaring even after the company badly missed revenue targets last quarter.
Hyperscalers Walk Through the Door
Fluence is a leading company providing ‘intelligent energy storage.’ As many data centers go ‘behind the meter’ for their power needs, demand for battery storage systems is booming. Fluence shares soared throughout 2025 on optimism sales would boom amidst the AI buildout, but plummeted after the company reported earnings in February and issued disappointing guidance.
Yet, the inflection point investors have been hoping for may have begun tonight, even if last quarter was disappointing.
Backlog tells the same story. Total backlog hit a record $5.6 billion as of March 31, 2026, and YTD order intake doubled to roughly $2.0 billion. The energy storage pipeline expanded to 41.3 GW (up 16%) and 147.0 GWh (up 20%). Add the first Smartstack delivery reaching substantial completion and affirmed access to U.S. domestic content, and the commercial momentum is looking strong.
The Revenue Whiff
Revenue of $464.89 million missed consensus of $622.31 million by 25.3%, even though it grew 7.7% year over year.
Most stocks with a miss this size would see shares absolutely crash the next day. Yet, investors knew Fluence’s near-term would be disappointing. The stock already crashed during its last report thanks to disappointing guidance. They’re willing to overlook results from last quarter and are instead focused on the master supply agreements with two hyperscalers, backlog growth, and order intake numbers reported this quarter.
Margins Quietly Climb
Key figures from the quarter:
- Diluted EPS: -$0.16 (vs. -$0.18 expected); beat by 11.41%
- Revenue: $464.89M (vs. $622.31M expected); up 7.7% YoY
- Adjusted EBITDA: -$9.44M (vs. -$30.41M YoY)
- Net Loss: $29.2M (narrowed from $41.9M)
- GAAP Gross Margin: 10.0% (vs. 9.9% YoY); adjusted 11.1% (vs. 10.4%)
- Liquidity: ~$900M
As you can see, results are improving despite the company missing Wall Street’s expected revenue figures. Adjusted EBITDA is improving, and losses are narrowing. Wall Street expects revenue to jump from $3.36 billion this year up to more than $4 billion in Fiscal 2027.
CEO Leans Into the Pipeline
CEO Julian Nebreda said the company is “beginning to see the benefit of our pipeline growth with an acceleration of orders over the past few months and backlog reaching another record level.” On the hyperscaler wins, he added that “our customer expansion strategy is gaining momentum” and that the first order should convert soon. Tone: confident, with execution as the proof point.
Watch Tomorrow Morning’s Conference Call
Fluence’s conference call doesn’t start until tomorrow at 8:30 a.m. With investors mostly focused on announcements around their hyperscaler master supply agreements, I’d expect no shortage of questions from Wall Street trying to pry at the nature of these agreements. If Fluence’s management team projects a lot of confidence, today’s earnings could be the beginning of a rebound that sends Fluence shares back to where they traded before their February crash.
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