Plug Power resumed its strong surge in the extended hours today, May 12, as the company published strong financial results, confirming that it has now turned the corner. PLUG jumped by over 12% on Monday and continued the rally by over 6% to $3.73. It remains 108% above the lowest point this year.

Plug Power stock is soaring as it turns the corner

Hydrogen energy company, Plug Power, is showing signs that it has turned around the corner after years of losses and dilution. This situation emerged in the fourth quarter of last year and continued in the first quarter of this year.

Its results, released on Monday, showed that its revenue continued growing in the first quarter. Its revenue soared by 22% in the first quarter to $163.5 million.

Notably, this revenue growth was driven by all its businesses, including the sale of equipment and related infrastructure. This business grew to $79 million in the first quarter from the previous $63.5 million.

Plug Power’s services on fuel systems jumped to $21.9 million from the previous $16.8 million. Additionally, the sale of fuel to consumers rose to $35 million, while the power purchase agreements jumped to $26.2 million. 

Most notably, the company improved its gross margin, moving it from minus 55% in Q1’25 to minus 13% in Q1’26. It attributed this growth to its strong sales, cost optimization, and efficiencies in fuel sourcing.

The only blemish in its results was a jump in its net loss, which moved to over $240 million. Plug attributed this increase to the non-cash adjustments in its convertible debt and warrant valuations. Jose Luis Crespo, the CEO said:

“We exceeded internal expectations on revenue, delivered on our margin and EPS targets, and continue to strengthen our financial position. Our focus remains on execution and growth, driving efficiency,”

The management believes that the company has more room to grow in the near term. It cited its material handling services provided to companies like Amazon and Walmart. 

It also noted that it had already deployed over 320 MW of electrolyzer capacity globally, with a pipeline of $8 billion globally. In recent statements, the company pointed to projects in Canada and Uzbekistan.

The company hinted that it will not need to raise cash again this year. It ended the last quarter with over $802 million in total cash, with its usage tracking better than expected. 

Plug Power share price forecast: technical analysis

PLUG stock chart | Source: TradingView 

The daily chart reveals that the PLUG stock formed a double-bottom pattern at $1.70 and the neckline at $2.66, its highest point in January this year. 

There are signs that it is slowly forming a rounded bottom pattern, a common bullish continuation sign in technical analysis. This pattern is usually part of the formation of the cup-and-handle. 

The stock has remained above the 50-day and 100-day moving averages. At the same time, the Relative Strength Index (RSI) and the MACD indicators have continued rising this year.

Therefore, the most likely PLUG stock forecast is bullish, with the next important target being $4.57, the upper side of the cup-and-handle pattern. This pattern is about 30% above the current level. The bullish outlook will become invalid if it drops below the double-bottom’s neckline at $2.65.

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