Electricity storage and software provider Fluence (NASDAQ:FLNC) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 7.9% year on year to $649.8 million. The company’s full-year revenue guidance of $3 billion at the midpoint came in 10.3% below analysts’ estimates. Its GAAP loss of $0.24 per share was significantly below analysts’ consensus estimates.
Is now the time to buy Fluence Energy? Find out by accessing our full research report, it’s free.
Fluence Energy (FLNC) Q2 CY2026 Highlights:
- Revenue: $649.8 million vs analyst estimates of $800.5 million (7.9% year-on-year growth, 18.8% miss)
- EPS (GAAP): -$0.24 vs analyst estimates of -$0.05 (significant miss)
- Adjusted EBITDA: -$29.3 million vs analyst estimates of $14.56 million (-4.5% margin, significant miss)
- The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.4 billion, a 11.8% decrease
- EBITDA guidance for the full year is -$10 million at the midpoint, below analyst estimates of $55.48 million
- Operating Margin: -6.7%, down from 0.7% in the same quarter last year
- Free Cash Flow was -$23.86 million compared to -$161.2 million in the same quarter last year
- Backlog: $6.4 billion at quarter end, up 30.6% year on year
- Market Capitalization: $2.08 billion
Company Overview
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Fluence Energy grew its sales at an incredible 29.2% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Fluence Energy’s annualized revenue growth of 10.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Fluence Energy also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Fluence Energy’s backlog reached $6.4 billion in the latest quarter and averaged 19.5% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Fluence Energy’s products and services but raises concerns about capacity constraints. 
This quarter, Fluence Energy’s revenue grew by 7.9% year on year to $649.8 million, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 52.2% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
Operating Margin
Fluence Energy’s high expenses have contributed to an average operating margin of negative 6.4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, Fluence Energy’s operating margin rose by 30.1 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.
In Q2, Fluence Energy generated a negative 6.7% operating margin.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Fluence Energy’s earnings losses deepened over the last five years as its EPS dropped 4.5% annually. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Fluence Energy, its two-year annual EPS declines of 106% show it’s continued to underperform. These results were bad no matter how you slice the data.
In Q2, Fluence Energy reported EPS of negative $0.24, down from $0.03 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Fluence Energy’s full-year EPS will flip from negative $0.50 to positive $0.21.
Key Takeaways from Fluence Energy’s Q2 Results
We struggled to find many positives in these results. Its full-year revenue guidance missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 27.1% to $10.62 immediately following the results.
Fluence Energy underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).