TLDR
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Plug Power stock rises as GenDrive deployments surge 125% year over year in Q2.
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Hydrogen fuel revenue climbs 15% as Plug Power improves production efficiency.
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Plug Power cuts operating expenses by about 50% while gross margin improves.
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Quarterly revenue reaches $178 million as commercial hydrogen activity expands.
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Plug Power raises 2026 revenue growth guidance to 15%–16% after stronger Q2.
Plug Power (PLUG) shares posted stronger second-quarter results as higher deployments, hydrogen sales, and lower costs improved operating performance. PLUG traded at $2.21, up 4.73%, after earlier gains faded during a sharp mid-morning pullback. The company also raised its full-year 2026 revenue growth outlook after stronger commercial execution.
Plug Power Stock Gains as GenDrive Deployments Jump 125%
Plug Power deployed 1,666 GenDrive fuel cell units during the quarter, up 125% from 739 units last year. The increase expanded its material handling base and strengthened recurring service and hydrogen revenue opportunities. Two major customers plan to refresh more than 20,000 GenDrive units during the next three years.
Service revenue rose 82% year over year to about $30 million during the second quarter. Meanwhile, service margin reached 27% as better unit reliability improved technician productivity. The company linked this progress to stronger operating leverage across its growing installed base.
Material handling remains central to Plug Power’s commercial hydrogen business and recurring revenue model. A larger installed fleet supports equipment replacements, maintenance services, and continued hydrogen fuel demand. Therefore, rising GenDrive deployments provide a broader revenue base beyond initial equipment sales.
Hydrogen Sales and Electrolyzer Projects Support Growth
Plug Power generated about $178 million in quarterly revenue, representing roughly 9% sequential growth. Fuel revenue increased about 15% year over year to nearly $39 million as hydrogen consumption grew. Fuel gross margin improved to negative 48% from negative 91% one year earlier.
The company also advanced large electrolyzer projects across Europe, Canada, Australia and Britain. Plug Power reached final investment approval for Carlton Power’s 30-megawatt Barrow Green Hydrogen project. It also secured a 50-megawatt electrolyzer order for Orica’s Hunter Valley Hydrogen Hub.
Other projects continued through development and commissioning during the quarter. Plug Power progressed the 100-megawatt GALP project in Portugal and a 25-megawatt project in Spain. The company also secured a 275-megawatt engineering scope for Hy2gen’s Courant Project in Québec.
Margins Improve as Plug Power Cuts Costs and Cash Usage
Plug Power improved gross margin to roughly breakeven from negative 31% in the prior-year quarter. Gross margin also strengthened from approximately negative 13% during the first quarter of 2026. Operating expenses fell about 50% year over year to roughly $62 million.
GAAP loss per share narrowed to $0.14 from $0.20 in the prior-year period. Adjusted loss per share improved to $0.07 from $0.18 one year earlier. Lower expenses and better margins helped reduce the company’s operating losses during the quarter.
Unrestricted cash stood near $162 million at quarter end, while net cash usage fell to about $61 million. Plug Power also received about $47 million from asset sales and escrow releases during July and August. The company raised full-year revenue growth guidance to 15% to 16% and maintained its fourth-quarter positive EBITDAS target.
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