Hydrogen fuel cell solutions provider Plug Power reported revenue of $178.3 million in the second quarter (Q2) of 2026, an uptick of 2.5% year-over-year (YoY) from $173.97 million. It beat analysts’ expectation of $168.76 million by 5.6%.

Net loss narrowed by 17% YoY from $228.73 million to $190.1 million.

Earnings per share (EPS) for the quarter came in at a negative $0.14, compared to a negative $0.2 in Q2 2025, beating analysts’ expectations by 12.5%.

Plug Power attributed its Q2 performance to higher revenue, gross margin expansion, lower operating expenses, and commercial execution across its core businesses.

Jose Luis Crespo, Chief Executive Officer and President, said the Q2 performance supported the company’s decision to raise its full-year 2026 revenue growth guidance to 15%-16% above its previous outlook.

Paul Middleton, Chief Financial Officer, said equipment margins benefited from higher volumes, manufacturing cost reductions, supply chain leverage, tariff recoveries, and lower tariff expenses.

Plug Power had reported revenue of $163.51 million in Q1 2026.

1H 2026

During the first half (1H) of 2026, the company reported revenue of $341.81 million, up 11.1% from $307.64 million.

However, its net loss widened by 2.5% YoY from $425.6 million to $436.14 million.

EPS for the period stood at negative $0.31, compared to a negative $0.41 in 1H 2025.

Plug Power’s net loss widened in 1H 2026 primarily due to fair-value losses on convertible debt instruments and warrant liabilities, along with higher interest expenses. These costs offset higher revenue, a narrower gross loss, and significantly lower operating expenses during the period.

Operational Highlights

Plug Power deployed 1,666 of its GenDrive fuel cell units during Q2, up 125% YoY from 739 units.

Two of its largest material-handling customers plan to refresh more than 20,000 GenDrive units over the next three years.

Crespo said the planned refresh of GenDrive units largely reflects normal replacement cycles, with about 2,000 units expected to be refreshed in 2026.

Service revenue increased 82% YoY to approximately $30 million. Service margin reached 27%, supported by improved unit reliability, which allowed technicians to service more units and improve overhead leverage.

Plug Power’s 30 MW Barrow Green Hydrogen project for Carlton Power in the UK  reached final investment decision. The project is part of the 55 MW awarded to it in November 2025. Plug Power expects the remaining 25 MW to reach final investment decision in 2026.

The company was selected for the 275 MW GenEco front-end engineering and design (FEED) scope for Hy2gen’s Courant project in Québec, Canada.

Its 100 MW Galp project in Portugal and 25 MW Iberdrola-BP project in Spain continued to progress through commissioning.

In July 2026, Plug Power secured a 50 MW contract for its GenEco electrolyzer following a final investment decision for Orica’s Hunter Valley Hydrogen Hub in Australia.

Crespo said several electrolyzer projects are expected to reach final investment decisions by the end of 2026 or early 2027.

Plug Power’s fuel revenue in Q2 rose approximately 15% YoY to $39 million, driven by higher hydrogen consumption across its customer base.

The company’s fuel gross margin improved to approximately negative 48% from negative 91% a year earlier, supported by higher plant utilization, production efficiency, and hydrogen network optimization.

Power purchase agreement losses narrowed to approximately 30% from 92% in the same quarter of the previous year. This development was driven by lower servicing costs and reduced equipment lease expenses under the company’s sale-leaseback buyback program.

The company completed a 3 MW fuel cell backup power test system with Microsoft but said it does not plan significant capital deployment in the data center segment.

Crespo said Plug has several data center customers. “We did the first test with a 3-megawatt system with Microsoft for backup power for data centers.”

“The data center market is one that we’ve been looking at from different angles. One of them is to try to create a solution that uses electrolyzers and using fuel cells could actually relieve a little bit of the network tension that is created by data centers connected to the grid.”

He named material handling, electrolyzers and hydrogen as three lines of businesses that Plug is focusing on.

Outlook

Plug Power expects positive operating income by the end of 2027 and full profitability by the end of 2028.

It also expects margins to improve further through higher equipment sales, lower service costs, improved fuel efficiency, and continued controls on operating expenses.

The company projects its cash usage to improve sequentially through the rest of the year.

Middleton said the second-half sales volumes are expected to be about 40% higher than in the first half, supporting Plug Power’s target of positive earnings before interest, taxes, depreciation, and amortization in Q4 2026.