MN8 Energy, Eos Energy Enterprises, Inc. (NASDAQ: EOSE), and Alphabet Inc. (NASDAQ:GOOGL)’s Google announced a collaboration on September 2 to deliver new, clean, around-the-clock energy resources to the PJM grid in support of growing demand in the region. For Eos, this deal marks an important validation point for its long-duration battery technology.
In response, Stifel analyst Stephen Gengaro reiterated a Buy rating on the stock with a $9.00 price target. The analyst views the Eos-Google collaboration positively despite the initial project being small.
Google Adds Credibility to EOS
EOS will provide a 10MW/ 100 MWh Z3 battery to provide long-duration energy storage as part of an integrated solution supporting data centers. AI data centers are creating demand for power sources that go beyond the shorter-duration energy storage resources and deliver dependable capacity across more hours of the day.
EOS’s system is a step in this direction, offering 10 hours of storage and enabling solar power to remain available for substantially longer periods. According to Nathan Kroeker, Chief Commercial Officer at Eos, the company’s work with Google is focused on deploying long-duration storage and solving real grid reliability challenges.
EOS operating backdrop also serves positively. For the second quarter, EOS generated a revenue of $68.8million, up 351% year-over-year, while backlog reached a record $807 million. The company also highlighted a commercial opportunity pipeline of $24.6 billion, as of June 30, 2026.
These numbers, together with the new collaboration with Google, point to growing interest in Eos’s technology, which may in the future lead to scaling revenues and growing orders for EOS.
Small and Years Away
While Gengaro views this Google deal positively, the analyst also pointed out that the initial project is small and scheduled to start operating in 2030. The solar component of the project is likely to start in 2028, lithium-ion storage will follow in 2029, while the long-duration storage component of the project isn’t expected to begin operations until 2030.
Besides this, the company itself remains far from profitability. For the second quarter, gross loss for EOS stood at $48.8 million, compared to $31.0 million in the prior-year period. Gross margin was negative 71%, even though it did improve 132 percentage points year over year and 7 percentage points sequentially.
The headline revenue growth coming from Q2 also has a concentration risk. Almost $55 million, or roughly 80% of Q2 revenue, came from a pre-existing project. The project was contributed to Frontier Power USA upon closing, while the project and FPUSA represented 49% of backlog volume at quarter end.
Management also reported tightening full-year 2026 revenue guidance to $300 million to $350 million, from the prior range of $300 million to $400 million.
Hedge Funds are Building Positions
Recent filings from Insider Monkey’s database shows hedge fund interest building for both EOS and Alphabet. For the second quarter, 45 hedge funds held positions in EOS, up from 33 in the prior quarter. Meanwhile, 275 hedge funds held positions in Alphabet, up from 265 in the prior quarter.
Hudson Bay Capital Management held an estimated 13.68 million shares in EOS at the end of Q2, while Electron Capital Partners also increased its position by 25% to 6.68 million shares.
Overall, the EOS-Google-MN8 collaboration serves as a positive for all three companies, particularly Eos. For EOS, the deal can be seen as a potential technology-validation point rather than an event that can radically transform its financial outlook. Provided all goes well, Google could become evidence that EOS’s long-duration storage holds strategic importance in the data-center power market.
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