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

Fermi (NASDAQ:FRMI) posted its quarterly earnings results on Thursday. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate 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 13.2%

FRMI traded down $1.00 on Thursday, hitting $6.60. The company had a trading volume of 34,713,089 shares, compared to its average volume of 14,887,393. The firm has a market cap of $4.21 billion and a P/E ratio of -5.79. Fermi has a 1 year low of $4.47 and a 1 year high of $36.99. The company’s fifty day moving average price is $7.18 and its 200 day moving average price is $7.22.

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi signed its first anchor customer for Project Matador: TensorWave agreed to lease capacity in a deal valued at approximately $6.5 billion. The agreement covers up to 650 megawatts, providing an important validation of demand for Fermi’s planned AI infrastructure. Rick Perry’s Fermi Finally Finds a Customer for Its Giant Texas AI Power Bet
• Positive Sentiment: The company said it completed all five objectives in its 90-day plan, including securing the customer, receiving three F-Series turbines, forming a strategic alliance with Hillcore Energy Capital, and appointing major contractors. Hillcore is expected to construct a 2.6-gigawatt gas plant supporting the larger, potentially 11-gigawatt Matador project. Fermi Announces Second Quarter 2026 Results and Delivers on All Five 90-Day Objectives
• Positive Sentiment: Fermi appointed Lee McIntire as chief executive officer. His more than 40 years of experience at Bechtel, CH2M Hill and TerraPower could help stabilize leadership and advance construction after months of legal and C-suite turmoil. Fermi Names Lee McIntire as Chief Executive Officer
• Neutral Sentiment: Fermi outlined a target of 640 megawatts of operational capacity by the fourth quarter of 2027. The milestone may improve investor confidence, but it remains dependent on construction, financing, permitting and customer execution. Fermi outlines 640 MW by Q4 2027 as it signs up to 650 MW with TensorWave
• Negative Sentiment: Second-quarter adjusted results showed a $0.04-per-share loss, beating the expected $0.06 loss by two cents but remaining unprofitable and wider than the year-earlier loss. With the stock having already rallied sharply on the TensorWave announcement, investors may be taking profits and demanding evidence that the deal converts into revenue and cash flow. Fermi Reports Q2 2026 Results

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Mizuho decreased their target price on shares of Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of Fermi in a research note on Thursday, July 2nd. Wall Street Zen downgraded shares of Fermi from a “hold” rating to a “sell” rating in a report on Sunday, May 10th. UBS Group lowered shares of Fermi from a “buy” rating to a “neutral” rating and set a $6.00 price target on the stock. in a research report on Tuesday, May 5th. Finally, Stifel Nicolaus decreased their price objective on Fermi from $29.00 to $17.00 and set a “buy” rating on the stock in a report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Fermi currently has an average rating of “Moderate Buy” and an average price target of $20.67.

Insider Transactions at Fermi

In other Fermi news, insider Mesut Uzman sold 79,509 shares of Fermi stock in a transaction dated 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 directly owned 670,491 shares in the company, valued at $4,230,798.21. This trade represents a 10.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James Richard Perry sold 863,637 shares of the business’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 directly owned 15,827,807 shares in the company, valued at $115,701,269.17. This trade represents a 5.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,022,178 shares of company stock worth $7,313,580 in the last ninety days.

Institutional Trading of Fermi

Institutional investors have recently added to or reduced their stakes in the stock. HighTower Advisors LLC purchased a new stake in Fermi in the fourth quarter valued at approximately $95,000. PNC Financial Services Group Inc. purchased a new position in shares of Fermi during the fourth quarter worth $36,000. Geode Capital Management LLC purchased a new position in shares of Fermi during the fourth quarter worth $5,491,000. BNP Paribas Financial Markets acquired a new stake in shares of Fermi in the fourth quarter valued at $4,723,000. Finally, Goldman Sachs Group Inc. acquired a new stake in shares of Fermi in the fourth quarter valued at $521,000.

About Fermi

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.