Fermi (NASDAQ:FRMI) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Fermi (NASDAQ:FRMI) posted its quarterly earnings data on Thursday. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.02, Briefing.com reports.

Here are the key takeaways from Fermi’s conference call:

• Anchor customer secured: Fermi signed a binding agreement with TensorWave for an initial 222 MW, 15-year commitment representing approximately $6.5 billion in revenue, with expansion options up to 650 MW. A backstop agreement covering the full initial term is expected to be finalized shortly.
• Power capacity could more than double: The Hilcorp alliance is expected to add approximately 2.6 GW under a build-own-operate-transfer structure, taking Project Matador’s potential capacity to 4.8 GW without upfront capital outlay from Fermi. Power purchases will be matched to signed tenant leases, with fuel costs passed through to customers.
• Execution milestones advanced: Fermi appointed project-delivery veteran Lee McIntire as CEO, announced EPC partnerships with Primoris and TSK, and received three Siemens F-class turbines. The company targets first power of 210 MW by July 1, 2027, and 640 MW of nameplate capacity by the fourth quarter of 2027.
• Liquidity strengthened: Fermi raised more than $430 million through 5% convertible senior notes due 2031, generating approximately $382 million in net proceeds after the capped call. Management said the structure provides additional runway and is intended to limit dilution until the share price more than doubles.
• Significant funding and execution requirements remain: Management is not disclosing total project costs, but cited typical costs of $3 million–$4 million per MW for power infrastructure and $10 million–$12 million per MW for turnkey data centers. Project financing and the TensorWave backstop must still be completed before full construction spending begins, leaving timing and delivery risk ahead of 2027 revenue commencement.

Fermi Trading Down 3.4%

FRMI stock traded down $0.23 during mid-day trading on Friday, reaching $6.38. The company’s stock had a trading volume of 11,945,742 shares, compared to its average volume of 14,867,790. Fermi has a 12 month low of $4.47 and a 12 month high of $36.99. The business’s 50 day moving average price is $7.19 and its 200 day moving average price is $7.19. The company has a market cap of $4.06 billion and a price-to-earnings ratio of -5.62.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Evercore cut Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 price target for the company. in a research note on Friday, May 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Fermi in a report on Thursday, July 2nd. Mizuho dropped their price target on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 28th. Stifel Nicolaus reduced their price objective on shares of Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a research note on Tuesday, June 23rd. Finally, UBS Group cut shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price objective for the company. in a research report on Tuesday, May 5th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $20.67.

Fermi News Roundup

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi signed its first anchor-customer agreement with AI infrastructure provider TensorWave for up to 650 megawatts of power capacity. The deal validates demand for Project Matador and provides a potential path to revenue from the company’s planned AI data-center campus. Fermi outlines 640 MW by Q4 2027 as it signs up to 650 MW with TensorWave
• Positive Sentiment: Hillcore was selected to build a 2.6-gigawatt gas-fired power complex at Fermi’s Matador site in Amarillo, Texas. The facility is intended to support a project that could ultimately reach 11 gigawatts, making the construction agreement an important infrastructure milestone. Fermi taps Hillcore to construct 2.6GW gas plant
• Positive Sentiment: Fermi said it completed all five objectives in its 90-day plan, including naming a CEO, securing an anchor customer, adding strategic and construction partners, receiving three F-Series turbines and raising more than $431 million in capital. These developments improve the company’s execution narrative. Fermi Announces Second Quarter 2026 Results
• Neutral Sentiment: Lee McIntire became CEO after a period of legal and executive turmoil. His experience leading complex industrial projects may support construction and commercialization, although the leadership transition still needs to translate into measurable results. Fermi Names Lee McIntire as Chief Executive Officer
• Negative Sentiment: Fermi reported a quarterly loss of $0.04 per share. Although this beat the expected $0.06 loss, the company remains unprofitable, with analysts forecasting a full-year loss of approximately $0.33 per share. Investors may therefore focus more on funding needs and project execution than on the earnings beat. Fermi quarterly earnings report

Insider Activity at Fermi

In other news, Director James Richard Perry sold 863,637 shares of the firm’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $7.31, for a total transaction of $6,313,186.47. Following the completion of the sale, the director owned 15,827,807 shares of the company’s stock, valued at $115,701,269.17. This trade represents a 5.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $6.31, for a total transaction of $501,701.79. Following the completion of the sale, the insider owned 670,491 shares of the company’s stock, valued at $4,230,798.21. This represents a 10.60% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,022,178 shares of company stock valued at $7,313,580.

Hedge Funds Weigh In On Fermi

Institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. acquired a new stake in shares of Fermi in the 4th quarter valued at about $36,000. MML Investors Services LLC acquired a new position in Fermi during the 4th quarter worth approximately $81,000. Public Employees Retirement System of Ohio bought a new position in Fermi in the fourth quarter worth approximately $86,000. Police & Firemen s Retirement System of New Jersey acquired a new stake in Fermi in the fourth quarter valued at approximately $87,000. Finally, Moneta Group Investment Advisors LLC bought a new stake in shares of Fermi during the fourth quarter valued at approximately $92,000.

Fermi Company Profile

Fermi’s mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world’s most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.