FuelCell Energy (NASDAQ: FCEL) Surges 37.97% on Q4 Earnings, Strategic Shift to Data Center Energy

The share price rose to its highest level so far this month, with an intraday gain of 37.97% on December 19, 2025. FuelCell Energy Inc. (NASDAQ: FCEL) surged following its fourth-quarter and full-year 2025 earnings report, which highlighted revenue growth, narrowed losses, and a strategic pivot toward data center energy solutions. The stock’s rally reflected investor optimism about the company’s ability to capitalize on AI-driven electricity demand and grid capacity challenges in the tech sector.

FuelCell Energy’s Q4 2025 revenue of $55.0 million marked a 12% year-over-year increase, while full-year revenue reached $158.2 million, a 41% rise. The company’s net loss narrowed to $30.7 million in Q4 from $42.2 million in 2024, supported by reduced operating expenses and improved gross margins. A $1.19 billion backlog as of October 31, 2025, underscored its long-term revenue visibility. The strategic focus on carbonate fuel cell technology for data centers, combined with a $25 million EXIM Bank financing deal, positioned the firm to scale operations in high-growth markets like South Korea.

Market sentiment was further bolstered by FuelCell Energy’s alignment with global decarbonization goals and partnerships in carbon capture initiatives. The stock’s three-day upward momentum, including a 34.94% surge on December 18, 2025, reflected confidence in its path to positive adjusted EBITDA at 100 megawatts of production. With $341.8 million in cash and a focus on cost discipline, the company appears well-positioned to navigate its transition from growth-stage losses to sustainable profitability, despite ongoing operational challenges.

Analysts noted that the company’s ability to reduce its losses while increasing revenue demonstrates a strong operational turnaround. The shift in strategy to data center energy solutions aligns with the growing demand for clean energy in the tech sector. FuelCell Energy’s financial flexibility, supported by its strong cash reserves and a growing backlog of orders, has led to speculation that the company could expand its market share in 2026.