Why Is FCEL Stock Plunging Hard Today?

• CEO Jason Few said on an earnings call with investors that FuelCell’s pipeline had increased to 4 gigawatts, representing growth of over 250% from the previous quarter. 
• Others also noted that potential data center customers now account for about 89% of its pipeline.
• The company is targeting the conversion of submitted proposals into contracted backlog within this fiscal year.

Shares of Fuelcell Energy Inc. (FCEL) fell more than 10% on Monday, extending the decline overnight after the company’s second quarter (Q2) 2026 results failed to ease investor concerns.

FuelCell Energy reported a quarterly loss of $1.45 per share and a 5% decline in revenue to $35.6 million, below Street expectations of $0.52 loss per share and $40.51 million in revenue.

CEO Jason Few said on an earnings call with investors that FuelCell’s pipeline had increased to 4 gigawatts, representing growth of over 250% from the previous quarter. Others also noted that potential data center customers now account for about 89% of its pipeline.

However, retail traders on Stocktwits remained ‘bearish’ amid speculation about whether management could convert proposals into actual revenue.

FCEL: Q2 Snapshot

Apart from the top and bottom-line misses, FuelCell’s gross loss increased to $12.9 million compared with $9.4 million in the same period of last year, while its operating loss more than doubled to $77.9 million from $35.8 million in the year-ago period.

Michael Bishop, Chief Financial Officer, attributed the loss to a non-cash impairment related to the Groton project, the utility power plant built for the U.S. Navy Submarine Base in Connecticut, which the company is expected “to upgrade utilizing three of our current generation 2.5 MW power blocks.”

“This was a strategic decision with the goal of ensuring high reliability for the Navy base customer following the upgrade,” Bishop said.

Meanwhile, Few outlined that the company’s pipeline includes opportunities across data centers, distributed generation, utilities, and industrial applications spanning both domestic and international markets.

“Potential data center customers make up about 89% of our pipeline. This is what gives us confidence in increasing the scale of our planned manufacturing capacity expansion at the Torrington facility from 350 megawatts to 500 megawatts of annual capacity,” he said.

The company is targeting conversion of submitted proposals into contracted backlog within this fiscal year, despite the lengthy approval process for 100 MW projects.

FCEL: Retail Stance

On Stocktwits, retail sentiment around FCEL remained ‘bearish’ over the past month, even as retail chatter jumped 1,394% over 24 hours, as per platform data.

One user outlined their takeaway from the calls, highlighting how, although the pipeline was increasing, it had yet to convert. “Still lots of talk - but poor execution,” they said.

Another bearish user said, “Let's see how long  FCE caN advance their data center deals here. Nothing is happening anytime soon. Until then this stock should trade around $9 again.” Shares of the company were trading around $15.43 at the time of writing.

However, one bullish user pushed back, noting, “The most important discussion for me in the CC is proposals and conversion expectations. The increase in proposals to 4GW is truly astounding, and if they work through the process, the contracts should follow. All you need is patience IMHO.”

FCEL's stock price has more than doubled over the past 12 months, primarily driven by optimism about the AI data center boom.

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