Plug Power (NASDAQ:PLUG) shares are trading higher premarket on Tuesday after the company reported third-quarter revenue of $200.6 million, up 13% year over year and beating the $198.87 million analyst estimate.

Earnings Snapshot

Plug Power reported third-quarter revenue of approximately $201 million, up 13% year over year and sequentially, marking its highest quarterly revenue in 2026.

Gross margin improved to negative 2.7% from approximately negative 68% a year earlier, but declined from negative 0.9% in the previous quarter, reflecting electrolyzer scale-up costs and unplanned hydrogen-plant outages.

Plug reported positive basic EPS of approximately $0.07, compared with a loss of $0.31 a year earlier. However, earnings included $192 million in non-cash mark-to-market gains on convertible notes and warrant liabilities.

2026 Outlook

Plug maintained its fiscal year 2026 revenue growth forecast of 15%-16% and expects fourth quarter revenue of approximately $280 million. Its full-year revenue guidance stands at $816.4 million-$823.5 million, below the $889.3 million analyst estimate.

Management also targets positive EBITDAS and approximately flat net cash usage for the fourth quarter, while full-year electrolyzer revenue is expected to fall slightly below 2025 levels.

Plug sees Europe's push for energy security creating new opportunities for hydrogen adoption. Its strategy focuses on replacing natural-gas-based hydrogen in refineries and supplying electrolyzers for e-fuel projects.

Management estimates Spain's proposed regulatory framework could generate approximately 10 GW of electrolyzer demand by 2030.

Material Handling Business

Plug deployed 1,136 GenDrive units, up 110% from 540 a year earlier. Equipment revenue increased to $106 million from $97 million, driven primarily by material handling.

Management expects Q4 GenDrive shipments to potentially exceed the combined total of the first nine months, with stronger contribution margins. Walmart's refresh cycle is expected to begin in Q4, covering approximately 2,000-2,500 units.

The company is also developing next-generation GenDrive fuel-cell technology to improve reliability, fleet uptime and stack life while reducing unplanned shutdowns.

Electrolyzer Business And Commercial Pipeline

Electrolyzer revenue declined approximately $40 million year over year due to project deployment timing. Management expects full-year 2026 electrolyzer revenue to be slightly below 2025 levels as it shifts toward larger-scale projects.

Plug signed a 280 MW electrolyzer supply agreement with Arcadia eFuels for Project ENDOR in Denmark, expected to produce approximately 110 tons of renewable hydrogen per day. Deliveries are expected to begin following the project's notice to proceed.

It also became the preferred supplier for four additional Arcadia projects representing more than 1 GW of potential capacity.

Other developments include a 50 MW order from Orica in Australia, a 1 MW system shipment to HWR Hydrogen in New Zealand and continued progress on projects with Iberdrola (25 MW), Galp (100 MW) and Quebec (275 MW). A 270 MW Hi2Gen project remains in the front-end engineering and design stage.

PLUG Price Action: Plug Power shares were up 4.67% at $1.57 during premarket trading on Tuesday, according to market data.