Track market-moving stories before they get noisy

Key Takeaways GE Vernova secured a 372-MW gas turbine order in Cote d'Ivoire, creating equipment and service opportunities.PEG targets $24-$28 billion in capital spending for 2026-2030, mostly for regulated investments.Both companies face growing electricity demand from data centers, electrification and grid modernization. GE Vernova (GEV - Free Report) and Public Service Enterprise Group (PEG - Free Report) are well positioned to capitalize on the growing need for electricity and investments in power infrastructure. The increasing adoption of electric vehicles, electrification of industrial operations, expansion of data centers, and rising reliance on digital technologies are driving electricity consumption, creating opportunities for power-equipment manufacturers and utility providers.

Both companies are benefiting from structural changes in the energy sector. The rapid expansion of artificial intelligence and data centers is boosting demand for reliable power, while the transition toward cleaner energy sources and the need to modernize aging transmission and distribution networks are accelerating investments across the industry.

GE Vernova stands to benefit from growing demand for power-generation equipment, grid technologies and related services, while Public Service Enterprise is poised to gain from investments in its regulated utility infrastructure, supporting sustained earnings growth under an established regulatory framework.

Against this backdrop, comparing the two companies' financial performance, growth prospects, valuation metrics and earnings outlook can help determine which stock offers the more attractive investment opportunity at present.

Factors Acting in Favor of GEV StockGE Vernova has a balanced investment profile. Demand is supported by a broad electricity cycle tied to grid upgrades, electrification, data centers, reliability and energy security, giving the company better revenue visibility than a typical equipment supplier. Power remains the clearest strength, aided by gas turbine demand, pricing, capacity expansion and future service opportunities.

On Oct. 20, 2026, GE Vernova announced that it had secured an order from Songon Energies S.A. to supply a 9E gas turbine and generator for the 372-MW Songon combined-cycle power plant near Abidjan, Côte d’Ivoire, with the facility expected to begin operations in 2029. The project will also provide opportunities for GE Vernova to supply high-voltage substation equipment, digital software and long-term services. The contract could benefit GE Vernova by strengthening its Gas Power business, expanding its presence in West Africa and generating additional revenue opportunities from equipment, digital solutions and recurring service agreements over the project's lifecycle.

Factors Acting in Favor of PEG StockPublic Service Enterprise is a regulated utility that owns and operates electric transmission and distribution networks, primarily in New Jersey. Rather than selling equipment, the company invests directly in utility infrastructure, including transmission lines, substations, grid reliability projects and clean-energy initiatives. Because many of these investments are made within a regulated framework, PSEG typically earns a predictable return approved by regulators, providing relatively stable cash flows and earnings growth.

The company’s investment plan remains centered on regulated infrastructure, which provides a clear path for rate-base expansion. For 2026-2030, PSEG continues to target $24-$28 billion of total capital spending, with more than 90% directed to regulated investments. The $22.5-$25.5 billion regulated program is expected to support 6-7.5% compound annual growth in rate base through 2030. PSEG expects to fund the five-year capital plan without issuing new equity or selling assets, limiting dilution while preserving capacity for continued dividend growth.

How Do Zacks Estimates Compare for GEV & PEG?The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates growth of 72.41% year over year. GEV’s long-term (three to five years) earnings growth rate is 19.21%.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Public Service Enterprise’s 2026 EPS implies growth of 8.15%. PEG’s long-term earnings growth rate is 6.09%.

Image Source: Zacks Investment Research

Valuation for GEV & PEGGEV shares trade at a forward 12-month price/sales (P/S F12M) of 4.26X compared with PEG’s 2.79X.

Image Source: Zacks Investment Research

GEV & PEG’s Return on Equity (ROE)ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 42.42% compared with Public Service Enterprise’s 12.42%.

GEV & PEG’s Price PerformanceIn the past year, shares of GE Vernova have risen 39% while those of Public Service Enterprise have declined 12.1%.

Image Source: Zacks Investment Research

GEV or PEG: Which Is a Better Choice Now?GE Vernova benefits from rising electricity demand, grid modernization and strong gas turbine demand, with new international orders creating opportunities in equipment, digital solutions and long-term services. PSEG offers stable earnings growth through regulated utility investments, expanding grid infrastructure and a long-term capital plan focused on predictable returns and sustained dividend growth.

Our choice at the moment is GE Vernova, given its stronger ROE, and better earnings growth and price performance than Public Service Enterprise. Both GEV and PEG carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova (GEV - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this the energy business spun off from General Electric have returned -2.7% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Alternative Energy - Other industry, to which GE Vernova belongs, has lost 4.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, GE Vernova is expected to post earnings of $4.03 per share, indicating a change of +145.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.3% over the last 30 days.

The consensus earnings estimate of $30.5 for the current fiscal year indicates a year-over-year change of +72.4%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $24.12 indicates a change of -20.9% from what GE Vernova is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for GE Vernova.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of GE Vernova, the consensus sales estimate of $12.1 billion for the current quarter points to a year-over-year change of +21.4%. The $46.32 billion and $52.95 billion estimates for the current and next fiscal years indicate changes of +21.7% and +14.3%, respectively.

Last Reported Results and Surprise HistoryGE Vernova reported revenues of $11.1 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $2.47 for the same period compares with $1.86 a year ago.

Compared to the Zacks Consensus Estimate of $10.77 billion, the reported revenues represent a surprise of +3.12%. The EPS surprise was -22.08%.

Over the last four quarters, GE Vernova surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

GE Vernova is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about GE Vernova. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investors usually view GE Vernova's (GEV -1.99%) backlog as a precursor to future revenue growth, and that approach is entirely valid. However, there's more to this accumulation of unfulfilled customer orders that exceed the company's immediate production capacity than meets the eye.

There's also an underlying story of a significant improvement in the company's potential to generate long-term recurring revenue, notably from long-term service agreements (LTSA) attached to gas turbines and aftermarket parts/repair and software subscriptions in electrical equipment. In addition, there's a margin expansion and cash flow improvement story too. 

Image source: Getty Images.

Here's a breakout of the company's remaining performance obligation (RPO), or backlog, over the last few years. A few points are from the data in the chart below:

The chart shows a remarkable increase in backlog from $116 billion in 2023 to $176 billion at the end of the second quarter.
The power and electrification segments contributed 111% of the increase in the backlog, offset by a decrease in the loss-making wind segment.

Data source: GE Vernova presentations. Chart by author.

GE Vernova's backlog improvement is better than it looks
The backlog improvement isn't done yet, at least according to CEO Scott Strazik and Wall Street. For example, Strazik spoke at a Morgan Stanley conference in September and told investors that the $200 billion backlog he had guided toward in 2027 "should hit very early in 2027," based on the third-quarter orders. He also said, "$200 billion is a very humble milestone on the trajectory we see toward growing to a much larger and more profitable business."

Wall Street sees it the same way, with the consensus view, according to S&P Global Market Intelligence, calling for a backlog of $303 billion in 2030 even as its revenue improves at a mid-teens percentage rate as the company converts the backlog.

Moreover, the improvement in the power and electrification segment implies more recurring revenue down the line, as heavy-duty gas turbines are typically sold with LTSAs that generate higher-margin service sales over many years. Similarly, its electrification segment equipment (grid, substation, switchgear, transmission equipment, etc.) also generates long-term revenue from equipment maintenance and software and digital services.

GEV GE Vernova$890.33-$18.11 (-1.99%)

NYSE · As of 4:00 PM ET 10/20/26

Improving margins
Strazik also noted that margins were improving across all three segments' backlogs, which means "margin expansion in our business is simply going to continue" in the years when most of the backlog is executed, in 2029 and 2030.

All three segments have good long-term growth prospects. The power segment's gas turbines and nuclear solutions help supply electricity to artificial intelligence (AI) data centers. Moreover, demand in its electrification segment is partly driven by the need to build out and maintain the grid to support AI data centers.

The improvement in the wind segment is more nuanced: The company is currently working through loss-making offshore wind contracts while prioritizing margin expansion in its onshore wind business and not chasing offshore contracts. These actions should lead to margin improvement in the future.

Improving cash flow
Finally, GE Vernova's cash flow profile is being significantly enhanced by the growth in slot reservation agreements (SRAs), in which customers pay cash up front to secure equipment manufacturing slots in the future. Focusing purely on power, management said at the end of the second quarter that it had 116 gigawatts (GW) under contract, including 63 GW in SRAs (note that SRAs are not included in the RPO or backlog figures).

Moreover, Strazik emphasized in September that "We also see our customers continue to really accelerate their slot reservation agreements into orders, which drove my earlier comment on us continuing to expect a very strong third quarter orders performance."

GE Vernova's backlog will drive growth
All told, a combination of improving up-front cash flow, margin expansion in the backlog, backlog growth, and improved long-term recurring revenue prospects is strengthening GE Vernova's prospects. Moreover, investors can expect to see immediate signs of these improvements in the upcoming earnings presentation due on Oct. 28.

GE Vernova’s stock has slipped into a bear market this year, falling from its year-to-date high of $1,193 to $938. The retreat has erased part of the gains made earlier in the year, when the stock was one of Wall Street’s top performers. Attention now turns to the company’s upcoming earnings report, where investors will scrutinize revenue and backlog growth.

GEV stock has slumped more than 20% from its year-high as investors book profits after its strong rally. At its peak this year, the stock was up over 960% from its 2024 low. 

The ongoing retreat has also coincided with the sell-off in other industrial companies like Caterpillar and GE Aerospace. 

In addition to profit-taking, investors are concerned about the company’s valuation, which has soared in recent years. Seeking Alpha data shows that, despite the recent sell-off, the company has a forward non-GAAP price-to-earnings ratio of 66.19, higher than the sector median of 19. 

On a GAAP basis, the company has a forward PE ratio of 33, also higher than the sector median of 21. Most notably, these numbers are significantly higher than the S&P 500 Index’s average of 19.1. They are also higher than other faster-growing companies in the AI industry like Micron and Nvidia. As such, the ongoing pullback is a sign that the company is going through a valuation reset.

Despite the ongoing weakness in its stock, all signs are that GE Vernova’s business is firing on all cylinders as demand for its products soars. 

The most recent quarterly results showed that its backlog jumped to $176 billion in Q2’26 from $129 billion in the same period last year. The CEO expects that this backlog will jump to $200 billion early next year.

GE Vernova’s revenue rose 22% in the quarter to $11.1 billion, while adjusted EBITDA increased to $1.2 billion. Most of the company’s orders came from its power division, where orders jumped 134% to $16.7 billion. The electrification business is also thriving, with orders rising 66% to $6.3 billion.

Analysts expect the company’s business to continue rising. The upcoming results, which will be released on October 28, are expected to show that its revenue rose by 20.3% to $12 billion. A 20% increase in revenue is a big achievement for a company in the industrial sector. 

This view explains why analysts are bullish about its business. Susquehanna sees the stock rising to $1,270, while Guggenheim expects it to jump to $1,450. Other top analysts, including those from Evercore, Jefferies, and Bernstein, expect it to jump to $1,100 and above. 

GEV stock chart | Source: TradingView

The weekly chart shows that the GEV share price has jumped from a low of $114.68 in 2024 to a record high of $1,193 in July. This surge has not been in a straight line as the stock has had some major pullbacks. For example, it dropped from $444 in January 2025 to a low of $251 in April of that year. 

It also dropped from $673 in July to a low of $527 in November. Most recently, the stock has pulled back from $1,193 to the current $931. This pullback is part of the bullish flag pattern. 

Therefore, the stock will likely resume the upward trend, potentially to the all-time high of $1,193. A move above that level will point to more gains, potentially to the psychological level of $1,250.

Building wealth lies in buying and holding well-run businesses with competitive moats and long-term growth prospects. I believe GE Vernova (GEV -3.12%) has that all in spades. Since it was spun off from General Electric in 2024, GE Vernova has proven itself to be one of the best ways to invest in the global electricity race.

That artificial intelligence boom is unlikely to slow for years to come, which means GE Vernova is well-positioned to succeed well into the next decade. While the stock has recently pulled back from all-time highs, this presents an attractive time to buy for long-term investors.

Image source: The Motley Fool.

In GE Vernova's second quarter, orders grew 88% to more than $24 billion. Revenue jumped 22% to $11.1 billion. The company's free cash flow in the second quarter exceeded the entire prior year's amount, at $5.1 billion.

The good news led the company's management to raise its revenue guidance for the entire year. GE Vernova now anticipates revenue of $45.5 billion to $46.5 billion. Better yet, the free cash flow estimate exploded to $11.5-$12.5 billion, nearly double its previous level.

The electricity race is going to last for several more years, and you can see that just in GE Vernova's backlog. The business pipeline is long at $176 billion and will likely exceed $200 billion by early 2027. The Power and Electrification divisions are leading the charge with substantial current and projected future growth, while the company's struggling Wind division is becoming less consequential.

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Of course, all this good news means the stock comes at a hefty price. Currently trading at about 39 times forward earnings, this stock has very few industrial peers with as much multi-year revenue visibility and as enormous a backlog. Today's premium could look quite inexpensive to a long-term investor.

Yes, GE Vernova is ramping up spending and still dealing with a losing Wind segment. Still, the bigger picture is very promising, and I do believe that GE Vernova is among the stocks that could help an investor build generational wealth.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova. The Motley Fool has a disclosure policy.

TVA can construct a 300-MW BWRX-300, but GE Vernova disclosed no project revenue or fleet order. Summary

Regulatory progress reduced one risk without proving commercial scale.

GE Vernova GEV, the power-equipment and grid-technology company, moved closer to deploying its small nuclear reactor in the United States, while shares fell 3.42% to $994 at 11.44am EST in October 7 trading. TVA's construction permit for Clinch River clears a major regulatory hurdle. But permission to build is only one step toward turning the technology into a commercial business.

GE Vernova's September 29 announcement identifies the approval as the first U.S. construction permit for its BWRX-300, a 300-megawatt boiling-water reactor. TVA filed its application in April 2025. The bigger opportunity is repeat business: using the same design across projects could let engineering work, licensing experience and supplier capabilities carry forward. Each successful deployment could make the next project easier to execute.

For investors, the test is whether regulatory progress turns into funded projects, equipment orders and reliable delivery. Demand for dependable data-center power could strengthen the opportunity, but this permit alone establishes neither revenue nor a reactor fleet. The picture's GF Score of 17/100 provides limited support for a broad investment-quality case, with financial strength the strongest displayed component. GE Vernova has cleared a hurdle. Now it needs to prove the economics.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

GE Vernova's cash outlook just surged while the stock sat still, and that gap between price and reality has analysts lining up on one side of the trade.

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GE Vernova (NYSE:GEV | GEV Price Prediction) trades at $987.29, and the stock has been moving sideways since its last earnings report while management has sharply raised its cash outlook.

GE Vernova builds gas turbines, grid and electrification equipment, and wind turbines. Demand from AI data centers and utilities upgrading the grid has driven strong order growth across the business. Shares are up 51.34% year to date. They also sit 17.4% below the 52-week high of $1,195.94 and trade between the 50-day average of $968.41 and the 200-day average of $913.15.

GE Vernova’s Backlog Is Turning Into Cash at a Rapid Pace Second-quarter free cash flow came in at $5.10B. Management raised full-year free cash flow guidance to $11.5B to $12.5B, up from $6.5B to $7.5B. Bookings rose 88% organically to $24.20B, and data center orders in Electrification exceeded $5 billion in the first half (GEV is one of the clearest non-chipmaker AI infrastructure plays, and we highlighted seven of these picks-and-shovels names in a free report here).

Management expects backlog to reach $200 billion in 2027 and is targeting $56B in revenue with a 20% adjusted EBITDA margin by 2028. The cash is already reaching shareholders. The dividend doubled to $0.50 per share, and the buyback authorization grew to $10B.

Down Payments Inflate the Cash Story, and the Multiple Leaves No Margin for Error Working capital supplied $6.4 billion of cash in the quarter, mostly from customer down payments. CFO Ken Parks said first-half free cash flow will be “substantially higher than the second half.” Second-quarter EPS of $2.47 missed the $3.17 estimate.

At a forward P/E of 39 and EV/EBITDA of 81, the price assumes perfect delivery. Wind is still a drag, with an expected ~$400M EBITDA loss this year and orders down 40% in the quarter.

Second-Half Cash Flow Will Decide Whether the Range Breaks Second-half results will provide the proof. Management expects positive free cash flow in the third quarter, with revenue and EBITDA peaking in 4Q26. If slot reservations convert into orders on pace toward at least 125 GW under contract by year-end, the optimistic view holds up. If margins slip, the bears gain ground.

Analyst Targets Sit Well Above the Trading Range The stock trades at $987.29, while the average analyst target of $1,230.34 implies 24.6% upside. Sentiment across the 37 covering analysts tends positive:

Strong Buy: 6 Buy: 24 Hold: 7 Sell: 0 Over the past year GE Vernova rose 63.25%, and the S&P 500 advanced 14.3%. Over the past month the stock added 9.88%, compared with 0.3% for the index. The trailing P/E stands at 27.

Cash Flow Keeps Building While the Stock Pauses At $987.29, GE Vernova trades below the average analyst target while its cash outlook improves.

Since the last earnings report, the share price has moved sideways while the cash outlook rose sharply. Down payments flow straight into capacity, and management says those payments fund the expansion. Annual gas turbine output is set to reach 20 GW starting this quarter, which turns backlog into revenue that customers have already partly paid for.

The most important drivers over the next two quarters are positive third-quarter free cash flow and the conversion of slot reservations into orders. A sharp drop in conversions or a stall in margins would break the thesis.

Strong cash generation keeps paying for buybacks and capacity while the stock moves sideways, so this consolidation looks like a reset with the stock trading below the analyst targets.

Contact [email protected] for any questions or corrections.

GE Vernova's (GEV -1.25%) CEO, Scott Strazik, recently gave a presentation at a Morgan Stanley conference, and his remarks were bullish on the stock and the company's future prospects. It was a series of subtly positive comments on the business that fell short of a guidance hike, but gave investors plenty of reason to raise earnings expectations. Here's why.

Image source: Getty Images.

What Scott Strazik said For reference, GE Vernova operates out of three segments: power (mainly gas turbine equipment and services), responsible for $2.9 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) in 2025; electrification (mainly electrical grid solutions), responsible for $1.4 billion in EBITDA in 2025; and finally wind (mainly onshore wind turbines), which lost $598 million in EBITDA in 2025.

Strazik pulled forward expectations for the company's backlog to hit $200 billion in 2027, moving it to "very early in 2027." He also noted that "$200 billion is a very humble milestone on the trajectory we see toward growing to a much larger and more profitable business." Within power, he noted that GE Vernova had 40 gigawatts (GW) of orders in the first half and that the current guidance is for 20 GW in the second half, but "Now 20 gigawatts is likely to prove to be conservative for the second half of the year." Strazik affirmed that all three segments would see margin growth in their 2026 backlog, with GE Vernova reaching a "profitability pivot point" in wind.

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What it all means for investors The first three points clearly indicate that orders and backlog momentum for the overall company and power are improving, with no signs of slowing. Moreover, the commentary that $200 billion is a "humble" milestone suggests GE Vernova investors should raise expectations for the company's backlog. Moreover, it's clear there's upside potential for power orders in the second half, and investors should watch what Strazik says in the upcoming third-quarter results presentation.

However, the most interesting point is the affirmation that backlog margin is growing, because a growing backlog combined with rising profitability in that margin implies margin expansion down the line.

Strazik even broke out the expected backlog margin expansion as "larger" in 2026 than the double-digit expansion in 2025. The margin in the electrification backlog will be modest, but there's "a healthy positive change in margin and backlog in wind."

While there's no guarantee the wind segment will start generating earnings again in 2027, GE Vernova appears to be successfully working through the loss-making offshore wind contracts it previously took on. The wind power end-market outlook remains soft, but GE Vernova's profitability in it is turning around, and Strazik argued it has an opportunity to repower its existing installed base.

What's next for GE Vernova? Investors are likely to see improving orders, backlog, and margin momentum in gas turbines driven by artificial intelligence data center demand. Electrification orders (up 76% in the first half of 2026) and backlog (up 64% in the second quarter) are booming, and new products will soon be added to the order book. And wind profitability is turning around. All of these point to a bright future for GE Vernova.

Over the past 52 weeks, shares of GE Vernova (GEV -1.12%) have traded as high as $1,195.94. However, with the stock closing at $946.22 on Sept. 21, shares are down 20.8% from that 52-week high. Still, given the opportunities ahead for GE Vernova, I would consider buying shares despite the pullback. Here's why.

Image source: The Motley Fool.

Cashing in on power demand While shares of GE Vernova are down some 20% from their 52-week high, the stock price is still up 47% over the past year. That's thanks to its strong performance over that period, most recently highlighted in its 2026 second-quarter earnings report.

The company reported orders of $24.2 billion, up 88% organically from the prior-year period. Also, for the second quarter, revenue of $11.1 billion was up 22%, and GE Vernova reported net income of $5.3 billion for the first six months of the year, compared with $756 million in the prior-year period.

Looking ahead, its strong performance can continue, driven by the boom in power demand from data centers fueled by artificial intelligence (AI). According to a 2025 Bloomberg report, 7% to 20% of U.S. electricity demand could come from data centers by 2032. And as GE provides the power infrastructure that allows those data centers to function, it can continue to benefit from that demand.

Aside from its gas turbines and grid electrification components, GE Vernova also has a less-talked-about division that could become a bigger revenue generator in the future.

The quiet nuclear energy play With communities worrying about rising energy bills from data centers and traditional grids struggling to meet current demand, let alone having the ability to meet growing demand, a new wave of power solutions will be needed. That opens the door for nuclear energy, particularly for companies developing small modular reactors (SMRs)

SMRs can offer greater flexibility in placement than traditional reactors, greater scalability, and potentially increased safety and security.

"Because SMRs have a simple and compact design, consumers will have more options to utilize nuclear power. This includes locations unable to support large reactors, in addition to powering smaller electrical markets and grids, isolated areas, and sites with limited water," the Office of Nuclear Energy wrote in a 2020 blog post.

However, when discussing nuclear energy stocks, Oklo and NuScale Power often receive the most attention as pure-play companies. But neither has commercial operations up and running. In comparison, GE Vernova is constructing an SMR, the BWRX-300, in a joint venture with Hitachi; construction is already underway, with commercial operation expected by the end of 2030.

While that is still a few years away from being up and running, it could become a division that drives more long-term value for GE Vernova and contributes more to sales and, eventually, profitability.

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The bottom line on investing in GE Vernova While GE Vernova can be a valuable long-term portfolio addition, it also faces some challenges. One is that conservative investors may feel uncomfortable with the forward price-to-earnings ratio of 38.1, thinking it's too rich. It's also dealing with declining sales in its wind division, which dropped 16% to $3.4 billion for the first six months of 2026.

That said, this is a company benefiting from building the infrastructure needed to keep AI running, which shows no signs of slowing down. For long-term investors, despite the stock price having declined from its 52-week high, I'd still be comfortable investing in GE Vernova.

GE Vernova Inc. (NYSE:GEV – Get Free Report) shares traded up 1.6% during trading on Friday . The stock traded as high as $949.51 and last traded at $939.2750. Approximately 3,990,307 shares were traded during mid-day trading, an increase of 48% from the average session volume of 2,697,875 shares. The stock had previously closed at $924.93.

GE Vernova News Summary Here are the key news stories impacting GE Vernova this week:

Positive Sentiment: GE Vernova is reporting record orders and has significantly increased its free-cash-flow outlook. Its backlog, which stood at $176 billion at the end of the second quarter, is expected to exceed $200 billion very early in 2027, signaling strong demand visibility. GE Vernova vs. NextEra Energy: Which Industrials Stock Is a Better Buy in 2026? Positive Sentiment: Bernstein defended GE Vernova as “wired to win,” emphasizing that data centers represent only 38% of its electrification order book. The broader mix suggests the company can benefit from utility and grid investment even if artificial-intelligence infrastructure spending slows. Bernstein’s Defense of GE Vernova Doesn’t Answer the Valuation Question Positive Sentiment: GE Vernova and Vineyard Wind settled their dispute over the Massachusetts offshore wind project. The agreement ends legal claims involving turbine problems and payments and allows Vineyard Wind 1 to continue full-scale operations, removing a notable overhang. Financial terms were not disclosed, although reports characterized the dispute as worth more than $300 million. Vineyard Wind, GE Vernova End Legal Conflict Over Massachusetts Wind Farm Positive Sentiment: Investors also responded favorably to progress on a Texas power-plant project that GE Vernova will supply, reinforcing expectations for growth in gas-power and grid equipment. Why GE Vernova Stock Crushed It on Wednesday Neutral Sentiment: The bullish analyst commentary supports the recovery, but Bernstein’s defense does not fully resolve concerns that GE Vernova trades at a demanding valuation. Future gains may depend on converting its large backlog into sustained earnings and cash flow. Why GE Vernova Stock Bumped Higher Today Wall Street Analysts Forecast Growth Several equities analysts recently weighed in on GEV shares. Royal Bank Of Canada boosted their price target on GE Vernova from $1,195.00 to $1,225.00 and gave the company an “outperform” rating in a report on Thursday, July 23rd. Mizuho upped their price target on shares of GE Vernova from $913.00 to $949.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. BMO Capital Markets reiterated an “outperform” rating on shares of GE Vernova in a research report on Friday, August 7th. TD Cowen lifted their price target on shares of GE Vernova from $1,220.00 to $1,235.00 and gave the company a “buy” rating in a report on Thursday, July 23rd. Finally, Wall Street Zen downgraded GE Vernova from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,145.83.

Read Our Latest Research Report on GE Vernova GE Vernova Stock Up 1.6% The company has a market cap of $250.16 billion, a PE ratio of 26.88, a price-to-earnings-growth ratio of 4.37 and a beta of 1.15. The company has a fifty day moving average of $980.62 and a two-hundred day moving average of $984.34. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.62 and a current ratio of 0.85.

GE Vernova (NYSE:GEV – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported $2.47 earnings per share for the quarter, missing analysts’ consensus estimates of $3.17 by ($0.70). GE Vernova had a net margin of 23.03% and a return on equity of 42.42%. The firm had revenue of $11.10 billion for the quarter, compared to the consensus estimate of $10.79 billion. During the same quarter last year, the firm earned $1.86 EPS. The company’s revenue was up 21.9% on a year-over-year basis. As a group, analysts anticipate that GE Vernova Inc. will post 15.36 earnings per share for the current fiscal year.

Institutional Investors Weigh In On GE Vernova A number of institutional investors and hedge funds have recently modified their holdings of GEV. Security National Bank of SO Dak purchased a new stake in GE Vernova in the second quarter worth $52,000. Security National Bank of Sioux City Iowa IA purchased a new stake in shares of GE Vernova during the second quarter valued at $74,000. Anchor Investment Management LLC boosted its stake in shares of GE Vernova by 31.0% during the second quarter. Anchor Investment Management LLC now owns 2,109 shares of the company’s stock valued at $2,478,000 after purchasing an additional 499 shares during the period. Bullseye Investment Management LLC bought a new position in shares of GE Vernova in the second quarter worth about $308,000. Finally, Smith Chas P & Associates PA Cpas bought a new position in shares of GE Vernova in the second quarter worth about $311,000.

GE Vernova Company Profile (Get Free Report)

GE Vernova Inc (NYSE: GEV) is an energy technology company that provides equipment, software and services for electricity generation, transmission and distribution. Its portfolio is designed to support power systems across a range of energy sources, including natural gas, nuclear, hydroelectric, wind and solar power, as well as battery storage.

The company operates through three primary businesses: Power, Wind and Electrification. Power supplies gas and steam turbines, generators, nuclear power technologies, hydroelectric equipment and related maintenance services.

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GE Vernova's blowout earnings sent shares soaring, then September erased every gain in days. Now one Wall Street analyst sees a path to 65% upside, and the order book behind that call is harder to dismiss than the selloff suggests.

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GE Vernova (NYSE:GEV | GEV Price Prediction) currently trades at $882.17, well below the consensus analyst price target of $1,237.34. That leaves an implied upside of roughly 40% to the Street average, and about 64% to the Street-high target of $1,450 from Guggenheim’s Joseph Osha.

GE Vernova is the pure-play power and grid business spun out of GE, with three segments: Power (gas turbines, nuclear), Electrification (grid equipment, HVDC, Prolec GE), and Wind. It has become one of the most direct public vehicles for the data center electricity build-out, which is why every wobble in the shares gets scrutinized.

The gap between price and target matters because analysts have been raising, not cutting, their views into the pullback.

A Sharp September Reversal Erased the Summer Rally The stock has lost 17.03% in the past month and 9.18% in the past week alone. Measured from the day GE Vernova filed its blowout Q2 report on July 22, 2026, shares are down 10.38%, giving back the entire post-earnings surge.

There was no company-specific disaster behind the drop. The Q2 numbers were exceptional: revenue of $11.10B, up 21.8% year over year, orders of $24.20B (+88% organic), backlog of $176B, and free cash flow of $5.10B in a single quarter. Management raised full-year free cash flow guidance to $11.5-$12.5B from $6.5-$7.5B.

The selloff looks like profit-taking on a stock that had gone parabolic, aggravated by a broader rotation out of AI-power names. For context, the S&P 500 slipped just 2.44% over the same month, so GE Vernova has meaningfully underperformed the broader market.

Why Guggenheim Sees a Path to $1,450 With more than 40% upside to consensus and roughly 64% to Guggenheim’s Street-high, this is where the story gets interesting. Guggenheim’s Joseph Osha raised his target from $1,300 to $1,450 after the quarter, anchoring his call on three pillars: hyperscaler-driven demand for transformers and turbines, margin expansion from higher-priced backlog, and multi-decade cash flow from long-term service agreements on the growing HA turbine fleet.

The order book supports that framing. GE Vernova signed 20 gigawatts of gas power orders in Q2 alone, bringing contracted capacity to 116 gigawatts, with management targeting 125+ GW by year-end. First-half data center orders exceeded $5 billion, more than double all of 2025. CEO Scott Strazik called it an “electricity investment super cycle“.

Analyst posture reflects that confidence. According to the consensus breakdown, 6 rate it Strong Buy, 24 Buy, 7 Hold, and none Sell or Strong Sell. Recent revisions on the 2027 EPS line have skewed positive, with 3 upward revisions against 2 downward in the past 30 days.

Power Peers Slipped Too, but GEV Has the Deepest Discount The wider power complex sold off alongside GE Vernova, though none of its closest peers took as hard a hit or offer as much implied upside.

Eaton (NYSE:ETN), the electrification and data center power specialist, trades at $392.26 against a consensus target of $478.17, or roughly 22% upside. Shares are down 13.09% in the past month. Of 27 analysts, 5 rate it Strong Buy, 17 Buy, 4 Hold, and 1 Strong Sell.

Constellation Energy (NASDAQ:CEG), the nuclear-heavy hyperscaler power supplier, trades at $259.89 versus a target of $348.30, an implied upside of about 34%. Constellation has fallen 26.1% year to date and is the only peer in the red for 2026, though analysts are still overwhelmingly constructive: 6 Strong Buy, 14 Buy, 3 Hold.

Across this trio, GE Vernova carries the largest analyst-implied upside, and the largest Street-high, which supports the argument that the recent drawdown reflects technical positioning more than a fundamental shift.

Data Behind the 40% Gap At $882.17, GE Vernova sits about 26% below its 52-week high of $1,195.94. The consensus target of $1,237.34 implies roughly 40% upside, drawn from 37 analysts in total.

Even after the selloff, GEV is up 35.23% year to date and 40.64% over the past year, versus 11.07% and 14.6% for the S&P 500 proxy. It still trades at a rich forward multiple of about 39, which is the number bears will point to.

Where I Land on GEV After the Reset GE Vernova looks compelling here if the backlog conversion story holds. The bull path is straightforward: Power scaling gas turbine output to 24 GW by 2028 and 30 GW by 2030, Electrification margins compounding as Prolec is absorbed, and Wind losses narrowing from the guided $400M EBITDA loss. If free cash flow lands anywhere near guidance and 2027 orders reprice higher, Guggenheim’s $1,450 is defensible.

The risk case: this pullback could be the market pricing in a real crack in the AI capex cycle. GE Vernova is one of the clearest non-chip beneficiaries of that spending (we profiled seven more suppliers powering the AI buildout in a free report here: 7 Stocks Powering the AI Boom). A forward P/E near 39 leaves no room for a hyperscaler pause, a wind writedown surprise, or tariff-driven supply chain hits. Any of those could easily send shares to the 200-day moving average of $895.29 and keep them there.

On balance, I lean constructive. The order book and the analyst posture argue this is a reset inside an uptrend. Sizing matters here, given the volatility around any single entry point.

Contact [email protected] for any questions or corrections.

U.S.-based energy technology company GE Vernova (GEV.N) and Thailand's B.Grimm Power have signed ​two agreements to partner on power generation and ‌energy infrastructure in Southeast Asia, the companies said on Tuesday.

Under the first agreement, GE Vernova will supply a gas ​turbine and associated generator for a gas-fired ​power plant project in Malaysia, owned and ⁠developed by B.Grimm Power, GE Vernova said in ​a statement.

Harald Link, chairman of B.Grimm Power, told reporters ​on the sidelines of the Gastech conference that the turbines will be delivered next year.

The power plant will be located ​in the Malaysian state of Perlis and will ​reach its commercial operating date in the fourth quarter of ‌2029, ⁠he added.

When asked about Malaysia's power market potential, Link said: "Every country gets a lot of data centers. That's why many countries invest in power generation ​and lines that ​connect to ⁠the grid."

Separately, GE Vernova and B.Grimm Power also entered a 14-year services agreement ​that covers five LM6000 gas turbine ​packages ⁠at B.Grimm Power's Bangkadi 1 and 2 power plants in Thailand for long-term operations.

The signing of the agreements ⁠took ​place at the Gastech exhibition ​and conference in Bangkok on Tuesday.

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Following a competitive evaluation process, Studsvik has selected GE Vernova Hitachi Nuclear Energy and Samsung C&T as its strategic partners for the first project to build new nuclear power, either at its existing licensed nuclear site in or at the Målma site in Valdemarsvik. Together with GE Vernova Financial Services and DS Investment Partners, the companies will advance an initial four-unit BWRX-300 project in Sweden, totalling 1.2 GW of new nuclear generating capacity, with the first unit expected in operation in the mid-2030s. /PRNewswire/ -- Studsvik AB (publ), GE Vernova Hitachi Nuclear Energy, GE Vernova Financial Services, DS Investment Partners and Samsung C&T today announced an agreement to advance the ReFirm nuclear programme at Studsvik's sites in Sweden. The agreement is exclusive for a fixed period, which the parties may extend.

ReFirm is a multi-site small modular reactor (SMR) and new nuclear development program that became part of the Studsvik Group through the acquisition of Kärnfull Next (KNXT) earlier this year. KNXT has worked with GE Vernova Hitachi on BWRX-300 deployment in Sweden since 2022 and entered a strategic teaming agreement with Samsung C&T in December 2024. Today's announcement covers sites at Nyköping and Valdemarsvik and provides for development to commence with a four-unit BWRX-300 project of approximately 1,200 MWe in total at one of them.

At Nyköping, Studsvik operates an existing licensed nuclear facility. At Valdemarsvik, an application was submitted in March 2026, the first made under Sweden's new legislation requiring government approval for nuclear facilities. Which site hosts the first project will be decided during the development work.

The phased, multi-unit structure is intended to support standardisation across the programme and creates opportunities to capture lessons learned from early deployment and apply them to subsequent units, helping improve cost, schedule and productivity outcomes.

It will also help maximise Swedish industrial participation throughout engineering, procurement, construction, and long-term operations. This reflects the broader objective of building a supply chain that can support not only the first project, but also follow-on units and wider deployment opportunities in Sweden and Europe.

Studsvik has worked in nuclear technology for more than 75 years, and that capability is what a new plant needs to get through design, qualification and commissioning. Beyond any equity participation, a domestic new-build programme of this scale is expected to create long-term opportunities for Studsvik's services over the operating life of the plants.

The agreement marks the next phase of development and does not constitute a final investment decision or authorisation to construct. The parties will begin joint development work immediately, including commercial, technical, regulatory and financing activities during the exclusivity period.

Studsvik leads permitting, the environmental impact assessment, site rights, community engagement and the dialogue with the Swedish state. GE Vernova Hitachi leads reactor design, licensing support and cost estimation and acts as design authority, and, together with Samsung C&T, acts as the execution team, giving the project single-point responsibility for design and construction delivery. During the exclusivity period, DS Investment Partners, a South Korean investment firm, will lead the investment and GE Vernova Financial Services participates in an advisory and financial structuring capacity in support of the consortium.

A joint project company will be established to support development, financing, construction, ownership and operation of the plants, with details to be finalised in definitive agreements.

Sweden is expanding nuclear capacity under legislation in force since 2026 that permits reactors at sites beyond the three existing plants and requires government approval for each, supported by a state financing framework of loans and two-way contracts for difference.

"Sweden's electricity supply is a long-term play: existing nuclear capacity is ageing, and demand for baseload power is growing. To meet that, we have looked for long-term partners and for the conditions that let projects like this succeed. In GE Vernova Hitachi and Samsung C&T we have found them. We intend to build the first project either on an existing nuclear site or on greenfield. One reactor is a project. Four is the start of an industry."

- Karl Thedéen, President and Chief Executive Officer, Studsvik

"Today's announcement is about helping Sweden turn its energy ambitions into reality in a timeframe that matters for its communities and industries. The country has a strong foundation of nuclear expertise and operational excellence, and the BWRX-300 combines proven boiling water reactor technology with the lessons being learned every day at the Darlington New Nuclear Project in Canada. Together with a growing global pipeline of projects across North America and Europe, this experience gives Sweden access to a technology that is moving from first-of-a-kind deployment toward fleet-scale execution."

- Jason Cooper, Chief Executive Officer, GE Vernova Hitachi Nuclear Energy

"Samsung C&T is honoured to partner with Studsvik, GE Vernova Hitachi and the other members of the development team to support Sweden's next generation of nuclear energy. By combining proven technology, world-class EPC execution, operational excellence and financing capability, we are establishing a strong foundation for the successful development of the ReFirm programme. We are equally committed to strengthening Sweden's industrial capability, expanding local supply chains and building a long-term strategic partnership that creates lasting value for Studsvik and Sweden."

- Oh Se-chul, President and Chief Executive Officer, Engineering & Construction Group, Samsung C&T

Today's announcement is not expected to have any material financial impact on the Studsvik Group's earnings for 2026.

About Studsvik

Studsvik is an independent nuclear technology company active across the full nuclear lifecycle, from new build development to existing fleet services, operations support and decommissioning. It is a leading supplier of vendor-independent reactor analysis software, and its hot cell laboratories in Nyköping test fuel and materials for fission and fusion applications worldwide. Studsvik also provides radiation protection services and technology for treating radioactive waste, and handles and packages radioisotopes for healthcare and industry. ReFirm is Studsvik's platform for new nuclear development in Sweden. Founded in 1947 as the centre of Sweden's national nuclear programme, Studsvik today serves operators, fuel vendors, technology developers and regulators in more than 20 countries, has approximately 540 employees in six countries, and is listed on Nasdaq Stockholm (SVIK).

About Samsung C&T

Samsung C&T's Engineering & Construction Group has more than 40 years of engineering and construction experience operating throughout the world. The group spans commercial and residential buildings, civil infrastructure and plant construction. Its landmark projects include Burj Khalifa, the world's tallest building, the ongoing Riyadh Metro Project in Saudi Arabia, the Qurayyah 4,000MW CCPP Project, and the ongoing Qatar 2,000MW Solar Power Project. In the nuclear energy sector, the company has successfully delivered 12GW across 10 units, including the 5.6GW Barakah Nuclear Power Plant in the UAE. It has recently undertaken the Nuclear Power Plant refurbishment project and Front-End Engineering Design (FEED) for Small Modular Reactors (SMRs), demonstrating its global competitiveness in large-scale reactor and SMR technologies, and solidifying its expertise across all areas of the nuclear industry.

About GE Vernova Hitachi

GE Vernova's Nuclear energy business, through its global alliance with Hitachi Ltd., is a world-leading provider of nuclear services and advanced nuclear reactor designs. Technologies include boiling water reactors and small modular reactors, such as the BWRX-300, which is one of the simplest, yet most innovative boiling water reactor designs. GE Vernova's Nuclear fuel business, Global Nuclear Fuel (GNF), is a world-leading supplier of boiling water reactor fuel and fuel-related engineering services. GNF is a GE Vernova-led joint venture with Hitachi, Ltd. and operates primarily through Global Nuclear Fuel-Americas, LLC in Wilmington, N.C., and Global Nuclear Fuel-Japan Co., Ltd. in Kurihama, Japan. HITACHI is a trademark of Hitachi, Ltd. used under trademark license. GE is a trademark of General Electric Company used under trademark license.

About DS Investment Partners

DS Investment Partners (DSIP) is a Seoul-based investment firm focused on energy, technology, healthcare and strategic infrastructure sectors. Working alongside technology providers, industrial partners and institutional investors across Asia, the Middle East, Europe and North America, DSIP seeks to support investments that enhance security, reliability and long-term sustainability while creating value for stakeholders.

About GE Vernova

GE Vernova Inc. (NYSE: GEV) is a purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerators. Building on over 130 years of experience tackling the world's challenges, GE Vernova is uniquely positioned to help lead the energy transition by continuing to electrify the world while simultaneously working to decarbonize it. GE Vernova helps customers power economies and deliver electricity that is vital to health, safety, security, and improved quality of life. GE Vernova is headquartered in Cambridge, Massachusetts, U.S., with approximately 75,000 employees across 100+ countries around the world. Supported by the Company's purpose, The Energy to Change the World, GE Vernova technology helps deliver a more affordable, reliable, sustainable, and secure energy future.

GE Vernova's Financial Services business provides customers with a suite of financing solutions for projects that aim to accelerate a new era of energy. It has deployed sizeable capital into energy projects globally through development financing, direct equity investments, and capital raising from private and public financial institutions.

Disclosure

This information is information that Studsvik AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and Sweden's Securities Markets Act. The information was released for public disclosure, through the agency of the contact person above, on 3 September 2026 at 07:30 CEST.

Forward-Looking Statements

Studsvik: This press release contains statements regarding future circumstances, including the timing of investment decisions, capacity, permitting processes and financing. Such statements are subject to uncertainty and actual outcomes may differ materially from those expressed or implied.

GE Vernova: This document contains forward-looking statements, that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements often address GE Vernova's expected future business and financial performance and financial condition, and the expected performance of its products, the impact of its services and the results they may generate or produce, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," or "range." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about planned and potential transactions, investments or projects and their expected results and the impacts of macroeconomic and market conditions and volatility on the Company's business operations, financial results and financial position and on the global supply chain and world economy.

For more information, please contact

Karl Thedéen, President and Chief Executive Officer, Studsvik AB (publ), +46 155 22 10 00

Media enquiries: [email protected]

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/studsvik-ab/r/studsvik--ge-vernova-hitachi-and-samsung-c-t-commit-to-advancing-1-2-gw-nuclear-power-project-in-swe,c4391372

The following files are available for download:

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Press Release Studsvik GE Vernova Hitachi and Samsung C T commit to advancing 1 2 GW nuclear power project in Sweden September 2026

https://news.cision.com/studsvik-ab/i/jasoncooper-sechuloh-karlthedeen-seungsukang-patrickleahy,c3561730

JasonCooper SeChulOh KarlThedeen SeungSuKang PatrickLeahy

https://news.cision.com/studsvik-ab/i/gvh-bwrx-300,c3561724

GVH BWRX-300

https://news.cision.com/studsvik-ab/i/smr-campus-9units-illustration,c3561731

SMR Campus 9units Illustration

https://news.cision.com/studsvik-ab/i/smr-campus-illustration,c3561733

SMR Campus Illustration

https://news.cision.com/studsvik-ab/i/karl-thedeen-ceo-studsvik,c3561732

Karl Thedeen CEO Studsvik

https://news.cision.com/studsvik-ab/i/christian-sjolander-head-of-new-build-projects-studsvik,c3561725

Christian Sjölander Head Of New Build Projects Studsvik

SOURCE Studsvik AB

Investors are buzzing about memory chip shortages amid the rapid artificial intelligence (AI) data center build-out. But a harder constraint has emerged: Data centers cannot get enough power. As a result, electricity has become one of the biggest bottlenecks for hyperscalers today.

In Anthropic's policy paper, "Build AI in America," the company notes that training a single frontier AI model in the future could require gigawatts of power. By 2028, the U.S. AI sector could require 50 gigawatts (GW) of electricity.

Getting more energy online is no easy feat. Transmission line construction, substation approvals, and grid interconnections are lengthy bureaucratic processes, and Anthropic CEO Dario Amodei doesn't want the cost of training and inference falling on ordinary Americans.

As a result, hyperscalers' attention has turned to alternative power solutions, like those offered by GE Vernova (GEV +0.00%). Here's why GE Vernova can continue to ride the AI trade higher over the next several years.

Image source: Getty Images.

GE Vernova benefits from historic demand for its power solutions GE Vernova is perfectly positioned for the electricity boom. The company provides a range of power solutions, including grid solutions, energy management systems, wind turbines, and gas turbines. The company's installed base, spanning more than 100 countries, generates one-quarter of the world's electricity.

The company's strongest product right now is its gas turbines. GE Vernova's heavy-duty gas turbines and aeroderivative turbines help meet hyperscalers' near-term power demands. For example, its aeroderivatives can be shipped, installed, and commissioned in as little as six months and provide bridge power while long-term electricity expansion takes place.

Meanwhile, its HA-class gas turbines provide efficient baseload power, which hyperscalers need as their power demands grow. In the second quarter, GE Vernova's heavy-duty gas equipment orders jumped fourfold in the second quarter. It booked 52 heavy-duty gas units during the period. The company's backlog reached a staggering $176 billion by the end of the quarter.

GE Vernova is a key player in Project Kilby in Texas, working alongside Chevron and Microsoft to build a 2.67-GW co-located power facility for Microsoft's AI data center. The facility will utilize GE Vernova's gas turbines and electrical infrastructure to deliver power directly to Microsoft without burdening the regional power grid.

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Powerful tailwinds should benefit the energy stock long term GE Vernova CEO Scott Strazik noted that "the long-cycle electric power industry is in the early stages of a multi-decade growth opportunity" during the company's second-quarter earnings call.

The company expects to have 125 GW of gas equipment orders under contract by the end of this year and is expanding capacity to provide 30 GW of gas equipment by 2030, up from the 20 GW annual output projected for the third quarter.

AI hyperscalers need power, and a lot of it. Given the long timeline for connecting to the power grid, coupled with pushback from local communities, more companies are turning to GE Vernova for power -- which should be a powerful tailwind for the stock for years to come.

Key Takeaways GEV's Q2 orders surged 88% organically to $24.2 billion, lifting backlog to about $176 billion.Power orders jumped 134% organically, with gas equipment backlog and reservations reaching 116 GW.Data-center orders topped $5 billion in the first half of 2026, more than double the 2025 total. GE Vernova Inc. (GEV - Free Report) is increasingly becoming a key beneficiary of the structural growth in global electricity demand. The growth is being driven by AI and data centers, industrial electrification, grid modernization and the need for additional reliable generation capacity. GEV’s second-quarter results show that this is translating into significant orders and backlog growth.

The company generated $24.2 billion of orders in second quarter 2026, up 88% organically, while revenues increased 22% to $11.1 billion. Backlog reached approximately $176 billion, up $13 billion sequentially. Power and Electrification were the primary drivers of this momentum.

GE Vernova’s Power segment generated orders worth $16.7 billion in the second quarter, up 134% organically. The company signed 20 gigawatts (GW) of new gas equipment contracts during the quarter, while total gas equipment backlog and slot reservation agreements increased from 100 GW to 116 GW. Management expects this figure to reach at least 125 GW by the end of 2026.

Data centers are an important part of this demand. AI infrastructure requires enormous quantities of reliable electricity, and grid constraints are making additional generation capacity increasingly valuable. GEV is expanding annual gas turbine production toward 30 GW by 2030 to meet this demand.

GE Vernova’s Electrification segment reported orders worth $6.3 billion in the second quarter, up 66% organically, while revenues increased 68%. Equipment backlog reached $40.6 billion, up 69% year over year. Data-center orders exceeded $5 billion during the first half of 2026 —more than double the company’s total for 2025.

What Other Stocks Stand to Benefit From This Trend?Along with GE Vernova, other companies are also positioned to benefit from this power-investment cycle.

Constellation Energy (CEG - Free Report) provides direct exposure to the generation side of rising U.S. electricity demand. As AI data centers, manufacturing facilities and broader electrification increase power consumption, the value of reliable, around-the-clock generation capacity is rising.

Eaton (ETN - Free Report) benefits from rising demand for electrical equipment and power-management solutions. The company is increasingly exposed to data-center construction and the broader need to manage constrained power infrastructure. Eaton and Siemens Energy have even partnered on integrated power solutions for data centers.

Earnings Estimates for GEVThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 73.09% and that for 2027 EPS implies a decline of 21.29% year over year.

Image Source: Zacks Investment Research

GEV Stock Trading at a PremiumGEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.92X compared with the industry average of 23.93X.

Image Source: Zacks Investment Research

GEV Stock’s Price PerformanceIn the past six months, the company’s shares have risen 6.1% against the industry’s 15.3% decline.

Image Source: Zacks Investment Research

GEV’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova's (GEV -0.95%) backlog is massive. If its $176 billion backlog were a country, it would rank as the 62nd-largest country by GDP, ahead of Kuwait, Ecuador, and Slovakia. That is huge, especially for a company that generated $38 billion in revenue last year.

GE Vernova's growing backlog reflects incredibly strong demand for its power equipment amid the AI data center boom. Here's what sits inside its massive backlog and what it ultimately means for investors.

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GE Vernova's massive backlog is driven by an energy investment supercycle GE Vernova's backlog, which it tracks as remaining performance obligation (RPO), surged higher to $176 billion at the end of the second quarter. This backlog grew by another $13 billion since the second quarter and is up 37% year over year, driven by a global electricity investment supercycle, providing the company with visibility into earnings well into the 2030s.

What makes GE Vernova particularly appealing right now is its position in the electricity and power generation industry. The company has a massive power generation footprint, thanks to its extensive gas turbine, wind, steam, and nuclear assets. The company supplies roughly half of the world's gas turbine capacity, and its equipment base roughly one-quarter of the world's electricity.

Demand for gas turbines is driving GE Vernova's rapid expansion The key driver of GE Vernova's massive backlog is the rapid build-out of artificial intelligence infrastructure, which is creating historic demand for its power and grid infrastructure equipment, such as grid transmission, switchgear, and transformers.

In addition, the company's gas turbine equipment is seeing especially strong demand. These turbines utilize natural gas to produce electricity. Natural gas is viewed as a "bridge fuel" that emits 50% less carbon than coal and provides flexible and reliable power to stabilize grids that rely on intermittent renewables.

GE Vernova is a major player in the gas turbine industry, thanks to its HA-Class turbines and aeroderivative turbines. Its HA-Class turbines provide large-scale, 24/7 baseload power (400 megawatts (MW) to 800 MW per block). Meanwhile, its aeroderivative turbines are well suited to meeting peak energy demand, backing up intermittent renewables, and providing on-site power for data centers or other remote facilities.

Its backlog is evenly divided between equipment sales ($87.8 billion) and services ($88.4 billion), showing robust demand for its power generation equipment and long-term service agreements.

Image source: The Motley Fool.

Demand for GE Vernova's equipment stretches out years in advance During the second quarter, GE Vernova signed 20 GW of new gas equipment orders, which include 18 GW of slot reservation agreements and 2 GW of firm orders. Slot reservation agreements require upfront deposits from customers to hold a place in line for future gas turbines, around three to five years out. They signal strong demand but are not yet booked in the backlog.

Due to capacity constraints and soaring global demand, GE Vernova is mostly sold out of gas turbine production slots through 2030. It expects to have over half of its 2031 production slots under contract by the end of 2026.

GE Vernova's massive backlog gives investors visibility into future earnings. Its equipment RPO is recognized in the near term, with 36% expected within one year and 97% within five years.

Meanwhile, its services backlog provides a much longer time horizon for visibility. Here, only 16% of this backlog will be recognized within a year, and 54% within five years. This growing services backlog is a major driver of GE Vernova's future growth, and it will continue to expand as equipment sales increase.

What's next for GE Vernova Looking ahead, GE Vernova projects its backlog to reach $200 billion by 2027. To meet this demand, the company is increasing its output. The company's annualized gas turbine production run rate is expected to reach 20 GW by the third quarter and scale up to 24 GW by 2028. The company is incorporating automation and lean manufacturing, and hopes to achieve 30 GW of capacity by 2030.

GE Vernova is experiencing unprecedented demand, supported by the data center build-out and the reshoring of U.S. industrial capacity. Given this robust demand and customers' commitments stretching years in advance, GE Vernova is an excellent stock for long-term investors to play the energy demand boom.

Morgan Stanley (MS -1.53%) estimates that U.S. data centers will need roughly 68 gigawatts of power between 2026 and 2028. About 15 gigawatts are tied to projects already under construction, while another 15 gigawatts can be supplied through available or contracted grid capacity. Do the math, and you're left with a potential 38-gigawatt power gap. That's not trivial.

In some parts of the country, getting a new connection to the electrical grid can now take five to seven years. Artificial intelligence (AI) companies won't wait that long, and Morgan Stanley expects data center developers to increasingly look for ways to get power faster, including on-site, natural gas turbines, fuel cells, and other forms of behind-the-meter generation. And that's where it gets interesting.

Generate it, move it, keep it cool You can't solve a 38 GW power shortage with another Nvidia chip. Somebody has to actually generate the electricity. Somebody has to move that electricity around the data center. And somebody has to keep thousands of power-hungry graphics processing units (GPUs) from overheating. That's why I'm bullish on GE Vernova (GEV -1.70%), Eaton (ETN -1.54%), and Vertiv (VRT -4.23%).

GE Vernova sells the turbines that can help generate additional power. Eaton sells the transformers, switchgear, circuit breakers, and other equipment needed to distribute it. And Vertiv sells the power-management and cooling systems that keep AI data centers running.

To be sure, none of these companies is an AI stock in the traditional sense. But if Morgan Stanley is right about that 38 GW gap, they could be selling some of the most important equipment needed to close it.

Image source: Getty Images.

GE Vernova: You can't run AI without electricity GE Vernova manufactures natural gas turbines that generate electricity for utilities and, increasingly, large data centers. That's becoming particularly valuable because connecting a new data center to the grid can take years. Some developers are instead considering "behind-the-meter" power, essentially building their own power plants next to the data center.

Morgan Stanley specifically identifies natural gas turbines as one of the biggest potential solutions to the power shortage, estimating they could provide roughly 15 to 20 gigawatts of capacity through 2028. GE Vernova is already seeing that demand.

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During the second quarter, its Gas Power equipment backlog and slot reservations reached 116 gigawatts, up from 100 gigawatts. Management now expects at least 125 gigawatts under contract by year end. Also worth noting: Data center orders in its Electrification business exceeded $5 billion in the first half of 2026, more than double what it booked in all of 2025.

Eaton: The picks and shovels of electricity Generating electricity is only half the battle. Once you've got the power, you still need to get it safely into thousands of servers. That's where Eaton comes in. Eaton manufactures switchgear, circuit breakers, transformers, busways, backup power systems, and other electrical equipment required inside data centers.

During Q2, Eaton's Electrical Sector data center orders increased approximately 85% year over year, while revenue jumped roughly 65%. Its Electrical Americas segment's backlog was also up 33% from a year earlier, providing considerable visibility into future demand.

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Eaton is also spending heavily to expand its AI infrastructure exposure. In March, the company completed its $9.5 billion acquisition of Boyd Thermal, adding liquid-cooling technology designed for increasingly power-dense AI data centers. Boyd Thermal is expected to generate roughly $1.7 billion in 2026 sales, including about $1.5 billion from liquid cooling, giving Eaton another way to profit as AI servers consume more electricity and generate more heat.

Vertiv: Keeping AI from cooking itself Vertiv sells power-management equipment, uninterruptible power supplies, thermal-management systems, and increasingly sophisticated liquid-cooling technology. And AI has been a gift for the company.

Vertiv's Q2 revenue jumped 24% to $3.27 billion, while adjusted operating profit increased 51%. Adjusted earnings per share (EPS) surged 60% to $1.52, and adjusted free cash flow more than tripled to $925 million. Management now expects roughly $14 billion in 2026 revenue at the midpoint of guidance, with organic sales growth of approximately 31%.

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The physical side of AI Morgan Stanley expects nearly $2.9 trillion in global data center construction through 2028. And regardless of which company dominates AI, those facilities still need electricity, electrical equipment, and cooling.

GE Vernova helps generate the power. Eaton helps distribute it. Vertiv helps manage power and heat once they reach the servers. None of these stocks is cheap, and there's always the possibility that data center construction slows as hyperscalers become more disciplined with capital spending.

But a roughly 40 GW power shortage isn't something you solve with another software update. You solve it with turbines, transformers, switchgear, cooling systems, and billions of dollars worth of industrial equipment. And that's exactly what these three companies sell.

GE Vernova (GEV +2.11%), which was spun off from General Electric (GE +0.50%) two years ago, posted some impressive numbers in its second-quarter earnings report in late July. Its revenue rose 22% year over year to $11.1 billion, beating analysts' estimates by $330 million, while its total orders surged 88% organically to $24.2 billion.

Within that total, GE Vernova's Power and Electrification orders surged 134% and 66% organically. The AI boom drove more utilities to purchase the Power segment's gas turbines and the Electrification segment's grid equipment.

Image source: Getty Images.

However, the Wind segment -- which sells onshore and offshore wind turbines -- posted a 40% decline in its organic orders. Let's see why nobody seems to be worried about that steep drop.

Why is GE Vernova's Wind business declining? GE Vernova's Wind segment only accounted for 5% of its total orders in the second quarter. That's down from 13% of its total orders in 2025. A combination of operational, macroeconomic, and demand-related challenges caused that decline.

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It experienced significant quality-control issues, including high-profile turbine failures at its Vineyard Wind and Dogger Bank projects. At the same time, soaring inflation and persistent supply chain bottlenecks compressed the margins of its onshore and offshore projects.

Since many of those projects were locked into fixed-price contracts, it couldn't simply adjust its prices to offset the pressure. Instead, it downsized its offshore business and refused to bid on higher-risk projects -- but that cautious approach reduced its orders and revenue.

The Wind Segment also remains a dead weight on GE Vernova's bottom line. In the first half of 2026, it posted a negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 19%, compared to a negative 7% in the first half of 2025.

Why isn't anyone worried about the Wind segment? GE Vernova isn't fretting over the Wind segment's decline because its Power and Electrification segments, which are riding high on AI tailwinds, can easily offset its sluggish growth and widening losses. In the first half of 2026, its Power and Electrification segments posted positive adjusted EBITDA margins of 17.6% and 18.2%, respectively, compared to their adjusted EBITDA margins of 14.1% and 13%, respectively, in the first half of 2025.

Instead of spending too much time trying to turn around its Wind business, GE Vernova is allocating more of its capital toward the Power and Electrification segments. So while investors should keep an eye on that weak link, they shouldn't consider it a red flag for the stock.

Key Takeaways GE Vernova's orders surged 88% organically to $24.2 billion, lifting backlog to roughly $176 billion.Gas equipment backlog and slot reservations rose to 116 GW, with at least 125 GW expected by year-end.GE Vernova is expanding U.S. and India capacity, while tariffs and supply disruptions pose cost risks. GE Vernova Inc.’s (GEV - Free Report) shares have risen 25.2% over the past six months, outperforming its Zacks Alternate Energy – Other industry’s decline of 3.3%. The company is benefiting from a growing gap between rising global demand for gas turbines and limited industry supply, driven by surging electricity consumption and the need for reliable power generation. Limited manufacturing capacity and long lead times are supporting stronger pricing, higher orders and attractive long-term aftermarket and service opportunities.
 

Image Source: Zacks Investment Research

Other alternative energy stocks, such as Crescent Energy Company (CRGY - Free Report) and Bloom Energy (BE - Free Report) , have also outperformed the industry during the same period. Shares of Crescent Energy and Bloom Energy have risen 14.1% and 47.5%, respectively.

Considering GE Vernova’s outperformance, investors might be left wondering if this is a good time to add GEV stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Factors Acting in Favor of GEVOn Aug. 4, 2026, GE Vernova announced that it has signed an agreement with Enfinity Global to supply 43 of its 3.8 MW-154m onshore wind turbines for their Fatehgarh Wind Farm in Rajasthan, India. The order was booked in the second quarter of 2026, providing additional revenue and backlog visibility for its Wind segment. The project reinforces GE Vernova’s local manufacturing advantage, as the turbines will be produced at its Pune facility, which has an annual capacity of up to 1,500 MW.

On July 30, 2026, GE Vernova announced an expansion of its Power Transmission manufacturing facility in Charleroi, PA. The company stands to benefit from this expansion by increasing its manufacturing capacity for high-voltage circuit breakers, switchgear and instrument transformers, allowing it to serve the rapidly growing U.S. demand for grid infrastructure more quickly.

GE Vernova delivered a strong second quarter of 2026, supported by robust demand across its Power and Electrification businesses. Orders surged 88% organically to $24.2 billion, while backlog increased $13 billion sequentially to $176 billion.

Gas Power was a major growth driver, reflecting the strong global need for reliable electricity generation. GE Vernova’s gas equipment backlog and slot reservation agreements increased from 100 GW to 116 GW, and the company now expects this figure to reach at least 125 GW by year-end 2026.

The Electrification business also showed strong momentum, particularly from data-center demand. GE Vernova said data-center orders have exceeded $5 billion year to date, more than double the full-year 2025 figure.

Key Challenges for GEVThe company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. Disruptions in the availability of raw materials, along with logistical delays, have affected and may adversely impact GE Vernova’s production timelines and raise its input costs, hurting its bottom line.

Throughout 2025 and 2026, the United States and other countries imposed global tariffs, resulting in additional costs. The current estimated total cost impact of these global tariffs is $100-$200 million in 2026, after accounting for contractual protections and mitigation measures.

GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 74.11% year over year. GEV’s long-term (three to five years) earnings growth rate is 18%.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates an increase of 40.6% year over year. The bottom-line estimate for Bloom Energy implies an improvement of 239.5% year over year.

GEV’s Earnings Surprise HistoryThe company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 74.03%.

Image Source: Zacks Investment Research

GEV’s Return on Equity Higher Than IndustryThe company’s trailing 12-month return on equity of 42.42% is higher than the industry average of 7.15%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

Image Source: Zacks Investment Research

GEV Stock Trades at a PremiumGE Vernova is currently trading at 36.92X, a premium compared to its industry’s 23.38X on a forward 12-month P/E basis.

Image Source: Zacks Investment Research

What Should Investors Do Now?GE Vernova is benefiting from strong demand across wind, gas power and grid infrastructure, while expanding manufacturing capacity in India and the United States to capture growing opportunities. Its strong order momentum, rising gas turbine demand and accelerating data-center investments are supporting backlog growth and creating a favorable long-term growth outlook.

Given its current premium valuation, new investors may prefer to wait for a better entry point. Those who already have this stock may stay invested, considering its earnings growth and strong ROE. GEV currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova (GEV -0.06%) stock declined by 15.7% in July, according to data from S&P Global Market Intelligence. The decline is a salutory reminder that valuations still matter, because there was nothing wrong with the fundamentals displayed when GE Vernova reported its second-quarter earnings report on July 22.

A nuanced dynamic GE Vernova's recent earnings report saw management raise its full-year revenue, earnings, and free cash flow (FCF) guidance for the third time in 2026. Having guided toward revenue of $41 billion to $42 billion and FCF of $4.5 billion to $5 billion on its investor update in December, management raised guidance on the fourth quarter 2025, first quarter 2026, and recent second quarter 2026 earnings presentations such that it now stands at revenue of $45.5 billion to $46.5 billion and FCF of $11.5 billion to $12.5 billion.

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Taking the midpoint of these figures, it's clear that the $4.5 billion increase in revenue has translated into a $7.25 billion increase in FCF, implying a 161% FCF leverage. That's a highly unusual number and reflects the particularly strong demand conditions for the company's gas turbine equipment.

GE Vernova free cash flow leverage In a nutshell, AI data centers and utilities are so desperate for power that they are willing to sign Slot Reservation Agreements (SRAs) to secure future production slots. In doing so, they pay a portion of cash upfront, which drops into GE Vernova's cash flow. That's good news because upfront cash flow has more value than cash flow later.

In addition, more equipment orders drive a ramp in long-term earnings and cash flow, as gas turbine installations lead to more lucrative long-term services sales via Long-Term Service Agreements (LTSA) attached to equipment sales.

Image source: Getty Images.

Why GE Vernova stock declined in July Just as increased orders lead to an outsize benefit to FCF and GE Vernova's valuation and a positive impact on the stock price, any slowdown in equipment orders will disproportionately weigh on the stock on the downside, too.

As such, investors need to keep a close eye on order momentum in relation to valuation at GE Vernova. While there's nothing to suggest any slowdown in orders, the sell-off in artificial intelligence (AI) related companies in July reminded investors that with the stock trading at 33 times estimated 2026 earnings any potential slowdown will lead to a correction in the share price.

That said, now that the dip has taken place, the company is arguably set up to perform well given any further improvement in its orders outlook.

There's no denying GE Vernova's (GEV +0.85%) business is booming. Last quarter's revenue grew 22% year over year to $11.1 billion, versus estimates of only $10.8 billion. Its backlog grew by $13 billion as well, reaching $176 billion, prompting the company to raise its full-year guidance from a range of $45.5 billion to $46.5 billion to a revised range of $44.5 billion to $45.5 billion.

It's profitable, too, with per-share profits improving from $1.86 in Q2 of last year to an adjusted $2.47 per share this time around.

That's the apparent reason GEV stock tumbled to the tune of 9% following the release of this quarterly earnings report, by the way... analysts were expecting a per-share profit of $3.18.

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What if, however, this post-earnings stumble is far more nuanced?

Vulnerable to anything less than perfection GE Vernova is the power-production business that spun off from General Electric in 2024. Wind turbines, nuclear power tech, hydroelectric equipment, and power-grid solutions are all in its wheelhouse.

The company's hottest business right now, however, is natural gas power turbines. Originally intended for electric utility companies, this arm is experiencing a serious swell of demand from artificial intelligence data center owners increasingly taking power production into their own hands. For perspective, PwC expects the United States' data-center-driven demand for natural gas to more than quintuple between 2025 and 2035. And GE Vernova's growing backlog says as much.

Nevertheless, its stock tanked following the release of its second-quarter numbers. What gives? It didn't fall for any single big reason, but rather, for a handful of small ones.

Image source: Getty Images.

One of those reasons is, of course, the earnings miss paired with another shortfall. That's quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.25 billion, which came up short of analyst projections of $1.28 billion. Meanwhile, its wind-power division's negative EBITDA widened to a loss of $275 million on a 10% tumble in revenue and a 39% decline in orders, surprising shareholders, as did management's warning that tariffs would add roughly $100 million to $200 million to this year's costs.

Perhaps none of this was as problematic, however, as the ticker's valuation heading into the release of the Q2 report. At the time, shares were priced at roughly 35 times this year's projected earnings of $30.76. With such a steep valuation, anything less than rock-solid perfection left the stock vulnerable to selling from nervous investors who were already watching it struggle even before earnings were posted.

An opportunity, not an omen Just don't read too much into the market's knee-jerk response. It's arguable that the stock was going to tumble no matter what GE Vernova reported, with profit-taking pressure still in place following its huge run-up earlier this year. The volatile market itself was -- and still is -- a contributing factor, too. Besides, most of the post-earnings pullback has since been reclaimed anyway.

More than anything, though, know that despite the stock's recent weakness, the analyst community still sports a 12-month consensus price target of $1,238.78, more than 20% above the stock's current price, with most of this crowd rating GEV as a strong buy. You could certainly do worse.

GE Vernova Inc. (GEV) Q2 2026 Earnings Call July 22, 2026 7:30 AM EDT

Company Participants

Michael Lapides - Vice President of Investor Relations
Scott Strazik - CEO, President & Director
Kenneth Parks - Chief Financial Officer

Conference Call Participants

Nicole DeBlase - Deutsche Bank AG, Research Division
Andrew Obin - BofA Securities, Research Division
Nigel Coe - Wolfe Research, LLC
Andrew Kaplowitz - Citigroup Inc., Research Division
Ameet Thakkar - BMO Capital Markets Equity Research
David Arcaro - Morgan Stanley, Research Division
Joseph Ritchie - Goldman Sachs Group, Inc., Research Division
Julien Dumoulin-Smith - Jefferies LLC, Research Division
Christopher Dendrinos - RBC Capital Markets, Research Division
Sunaina Ocalan - Bernstein Institutional Services LLC, Research Division

Presentation

Operator

Good day, ladies and gentlemen, and welcome to GE Vernova's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] My name is Liz, and I will be your conference coordinator today. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the program over to your host for today's conference, Michael Lapides, Vice President of Investor Relations. Please proceed.

Michael Lapides
Vice President of Investor Relations

Thank you. Welcome to GE Vernova's Second Quarter 2026 Earnings Call. I'm joined today by our CEO, Scott Strazik; and CFO, Ken Parks.

Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's Form 10-Q press release and the presentation slides, all of which are available on our website. Please note that unless otherwise specified, our year-over-year commentary or variances on orders, revenue, adjusted and segment EBITDA, and margin discussed during our prepared remarks are on an organic basis, which includes the removal of the impact of our Prolec GE acquisition.

We will make forward-looking statements about our performance. These statements are based on how we see things

GE Vernova (GEV - Free Report) came out with quarterly earnings of $2.47 per share, missing the Zacks Consensus Estimate of $3.17 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -22.08%. A quarter ago, it was expected that this the energy business spun off from General Electric would post earnings of $1.84 per share when it actually produced earnings of $1.98, delivering a surprise of +7.61%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

GE Vernova, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $11.1 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.12%. This compares to year-ago revenues of $9.11 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

GE Vernova shares have added about 65.1% since the beginning of the year versus the S&P 500's gain of 9.7%.

What's Next for GE Vernova?While GE Vernova has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for GE Vernova was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.12 on $11.97 billion in revenues for the coming quarter and $30.70 on $45.36 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ReNew Energy Global PLC (RNW - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -25%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ReNew Energy Global PLC's revenues are expected to be $451.3 million, down 6% from the year-ago quarter.

GE Vernova's logo during the CERAWeek energy conference 2026 in Houston, Texas, U.S., March 24, 2026. REUTERS/Danielle Villasana Purchase Licensing Rights, opens new tab

CompaniesJuly 22 (Reuters) - GE Vernova (GEV.N), opens new tab said on Wednesday global tariffs would increase its costs by about $100 ​million to $200 million in 2026, after the company narrowly missed ‌estimates for second-quarter core profit.

The expected cost increase reflects contract protections and some cost recovery efforts, though the tariff burden underscores the pressure on ​manufacturers navigating global trade barriers.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

GE Vernova shares were down ​8% in premarket trading.

The Cambridge, Massachusetts-based company reported adjusted ⁠core earnings of $1.25 billion for the quarter, missing analysts' estimates ​of $1.28 billion, according to LSEG data.

Its wind business continued to lag ​its faster-growing Power and Electrification segments, as weaker onshore equipment deliveries and higher offshore wind project costs weighed on results.

Revenue from the wind segment fell ​about 10% to $2.03 billion, while its core loss widened to ​about $275 million.

POWER DEMAND DRIVES OUTLOOK UPGRADEThe company raised its 2026 revenue forecast for ‌a ⁠second consecutive quarter, helped by strong power demand and rising orders.

It now expects $45.5 billion-$46.5 billion, up from $44.5 billion-$45.5 billion.

GE Vernova reported $24.2 billion in orders in the second quarter, compared with $12.4 billion ​a year earlier.

U.S. ​power consumption is ⁠forecast to rise in 2026 and 2027 as data center expansion and electrification drive demand, with ​commercial-sector demand expected to outpace residential this year.

It ​also raised ⁠its annual free cash flow forecast to $11.5 billion-$12.5 billion from its previous range of $6.5 billion-$7.5 billion.

The electrification unit reported a core profit ⁠of $671 ​million, up from $314 million a year ​ago, while the power unit posted $1.03 billion, nearly a 31.3% rise.

Reporting by Sumit Saha ​in Bengaluru; Editing by Vijay Kishore, Jonathan Ananda and Tasim Zahid

Our Standards: The Thomson Reuters Trust Principles., opens new tab

BofA Securities remains bullish on GE Vernova Inc. (NYSE:GEV) as strong demand for power-generation and grid equipment continues to support the company’s growth outlook.

Analyst Andrew Obin reiterated a Buy rating on the stock with a $1,310 price forecast.

• GE Vernova stock is showing notable weakness. What’s pressuring GEV stock?

Obin expects strong second-quarter order growth, driven by demand for gas-power and grid equipment. BofA Securities forecasts total orders of $19.6 billion, up 59% year over year and slightly above the $19.4 billion consensus estimate.

The projection includes $11.1 billion in Power orders, $7 billion in Electrification orders, and $1.6 billion in Wind orders.

Power: Gas Demand Drives OrdersBofA Securities expects GE Vernova to secure 13 gigawatts of gas-power equipment contracts during the quarter. The projection includes 9 gigawatts of firm orders and 4 gigawatts of net slot reservation agreements.

The firm forecasts Power revenue of $5.61 billion, up 17% year over year, with an adjusted EBITDA margin of 17.9%.

Power orders could rise 57% to $11.1 billion, supported by demand for gas-turbine equipment and services.

Electrification: Key Upside DriverObin views Electrification as the segment most likely to outperform expectations.

BofA Securities forecasts segment revenue of $3.47 billion, representing 60% reported growth. The estimate includes a 25-percentage-point contribution from GE Vernova’s acquisition of the remaining interest in the Prolec joint venture.

The firm projects an 18% adjusted EBITDA margin and believes management’s guidance for modest sequential margin expansion may prove conservative.

Wind: Weakness PersistsBofA Securities expects Wind revenue to decline 16% to $1.88 billion, reflecting continued weakness in the U.S. onshore wind market.

The firm forecasts an adjusted EBITDA loss of $280 million for the segment.

Financial Outlook and ValuationBofA Securities projects second-quarter revenue of $10.84 billion and adjusted EBITDA of $1.21 billion.

For 2026, the firm forecasts revenue of $45.49 billion, adjusted EBITDA of $6.27 billion, and free cash flow of $7.35 billion.

BofA Securities bases its $1,310 price forecast on 40 times estimated 2027 adjusted EBITDA. Obin believes the premium valuation reflects GE Vernova’s above-peer earnings growth and margin-expansion outlook.

Risks include changes to wind incentives, execution challenges, weaker gas turbine demand, and contract cost overruns.

Stromnetz Berlin: GE Vernova Wins Grid ContractsSeparately, GE Vernova said Thursday that it secured two contracts from Stromnetz Berlin GmbH to design, deliver and install 110-kilovolt gas-insulated substations in Wittenau and Neukölln.

The substations will use GE Vernova’s SF₆-free g³ technology, which reduces the insulating medium’s global warming potential by about 99% compared with SF₆.

The projects will modernize sections of Berlin’s high-voltage network serving homes, businesses and public infrastructure.

The contracts expand the company’s involvement in European grid modernization and support demand for its Electrification equipment.

GEV Stock Price Activity: GE Vernova shares were down 3.36% at $1,019.80 at the time of publication on Thursday, according to Benzinga Pro data.

Image by Saskia B via Shutterstock

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