A shape optimization method is used to study the exterior Bernoulli free boundaryproblem. We minimize the Kohn–Vogelius-type cost functional over a class of admissibledomains subject to two boundary value problems. The first-order shape derivative of the costfunctional is recalled and its second-order shape derivative for general domains is computedvia the boundary differentiation scheme. Additionally, the second-order shape derivative ofJ at the solution of the Bernoulli problem is computed using Tiihonen’s approach.