Plug Power (NASDAQ: PLUG) is giving investors a reason to pay attention again. After years of heavy losses, falling revenue, and concerns about its cash position, the hydrogen company is showing signs that its turnaround plan may finally be working. Its latest second-quarter results beat Wall Street expectations, the company raised its 2026 revenue outlook, and margins improved sharply.
Plug Power reported second-quarter revenue of $178.3 million, above the $168.76 million analysts had expected. Its adjusted loss was also smaller than expected, at $0.07 per share compared with an estimated loss of $0.08. The company also raised its full-year 2026 revenue growth forecast to between 15% and 16%, up from its previous guidance of 13% to 15%.
In addition, we should note that the revenue beat was the improvement in profitability.
Plug Power’s gross margin moved to approximately breakeven in the second quarter. That compares with a negative 31% margin in the same quarter last year and a negative 13% margin in the first quarter of 2026. The company also cut operating expenses by about 50% year over year, bringing them down to $62 million.
The Turnaround Plan Is Starting to Show Results
Plug Power has been working on a major turnaround called Project Quantum Leap. The plan focuses on reducing costs while shifting the business toward areas that could produce better returns. One important area is electrolyzers, which are machines used to produce hydrogen.
According to The Motley Fool, Plug Power’s electrolyzer revenue grew from $9.2 million in 2025 to $40.8 million in 2026. The company has also been building its electrolyzer business through deals in Europe and Canada.
Its material-handling business is showing improvement as well. During the second quarter, Plug Power deployed 1,666 GenDrive fuel-cell units, a 125% increase from 739 units a year earlier.
Service revenue rose 82% year over year to $30 million, while fuel revenue increased about 15% to $39 million.
These improvements matter because Plug Power needs more than revenue growth. It needs a business that can eventually generate sustainable profits and cash.
Could Plug Power Be Profitable by 2028?
This is where the story gets interesting.
Plug Power has said it expects to reach positive EBITDAS in the fourth quarter of 2026. The company is also targeting positive operating income in 2027 and full profitability in 2028.
If those targets are achieved, Plug Power could look dramatically different by 2028.
Instead of being viewed mainly as a hydrogen company that continually burns cash, it could become a more efficient business with growing revenue, better margins and a clearer path to profitability. That is the bullish case.
The Big Risks Remain
Oppenheimer’s decision to maintain a “Perform” rating after the earnings report is a reminder that Wall Street is not ready to declare victory.
Plug Power’s results were better than expected, but the company remains unprofitable. Oppenheimer also highlighted continued profitability challenges and the company’s weak gross margin on a trailing basis.
Debt is another concern. The Motley Fool points out that Plug Power has spent years relying on borrowing and issuing new shares to support the business. The company also faces significant interest and repayment costs.
What Does This Mean?
Plug Power’s latest results are encouraging, but they do not prove that the turnaround is complete. The company is moving in the right direction. Revenue beat expectations, guidance increased, gross margins improved to roughly breakeven, and operating expenses fell sharply.
At the same time, Plug Power is still losing money and faces debt, cash-flow and industry challenges. That makes the stock an interesting turnaround story, but also a risky one.
