Plug Power Inc. (NASDAQ:PLUG) stock fell more than 9% Tuesday as Wall Street analysts offered mixed views on the hydrogen company's turnaround following its third-quarter results.

Analysts highlighted improving margins, stronger material-handling demand and lower cash usage. However, they warned that fourth-quarter execution remains critical.

Revenue Beats, Margins Improve

Plug Power reported third-quarter revenue of $200.6 million, up 13% year over year. Revenue topped the $198.87 million analyst estimate.

Gross margin improved to negative 2.7% from roughly negative 68% a year earlier. However, electrolyzer costs and hydrogen plant outages weighed on sequential margins.

The company reported earnings of about 7 cents per share, compared with a 31-cent loss a year earlier. Results included $192 million in noncash gains.

Plug maintained its 2026 revenue growth forecast of 15%-16%. It expects roughly $280 million in fourth-quarter revenue.

However, its full-year revenue forecast of $816.4 million to $823.5 million remains below the $889.3 million analyst estimate.

RBC Flags Execution Risks Despite Improving Margins

RBC Capital analyst Christopher Dendrinos maintained a Sector Perform rating and a $2 price forecast.

Dendrinos highlighted stronger revenue and improving margins. However, he noted that $10.4 million in loss-contract provisions benefited third-quarter margins.

RBC expects fourth-quarter revenue of $288 million, driven by higher material-handling volumes and Walmart equipment upgrades.

The firm also expects equipment contribution margins of 30%-40% and improving hydrogen fuel economics.

However, RBC forecasts continued adjusted EBITDA losses through 2028.

Dendrinos said fourth-quarter volumes and product mix will determine whether Plug can achieve positive EBITDAS and sustain its margin recovery.

H.C. Wainwright Sees Major Turnaround Potential

H.C. Wainwright analyst Amit Dayal reiterated a Buy rating and $7 price forecast.

Dayal highlighted stronger material-handling demand after Plug deployed 1,136 GenDrive units, more than double the 540 units a year earlier.

He said fourth-quarter shipments could exceed the total units delivered during the first nine months.

The analyst also expects improving service margins, fuel recovery and electrolyzer demand to support growth.

H.C. Wainwright forecasts revenue of approximately $817 million in 2026, rising to nearly $14 billion by 2036.

Dayal expects gross margins to exceed 20% in 2027-2028.

However, he warned that Plug must deliver on its fourth-quarter revenue and profitability goals amid limited unrestricted liquidity.

PLUG Stock Price Activity: Plug Power shares were down 9.00% at $1.50 at the time of publication on Tuesday, according to market data.