Studsvik uzavřel dohodu s GE Vernova Hitachi Nuclear Energy a Samsung C&T o rozvoji prvního projektu nových jaderných bloků ve Švédsku o výkonu 1,2 GW. První jednotka BWRX-300 má být zprovozněna v polovině 30. let.
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
GE Vernova má na konci druhého čtvrtletí backlog 176 miliard USD a objednávky za 24,2 miliardy USD vzrostly meziročně o 88 %. Objednávky související s datovými centry za první polovinu roku 2026 přesáhly 5 miliard USD.
GE Vernova (GEV +2.60%) was spun off from General Electric a little more than two years ago. By 2036, we'll look back at that breakup as one of the better corporate decisions GE ever made.
If you're unfamiliar, GE Vernova sells gas turbines, wind turbines, nuclear technology, transformers, grid equipment, and the software and services needed to keep much of it running. That means the company doesn't have to predict exactly how the U.S. will generate electricity 10 years from now, because it can make money from nearly all of it. And with electricity demand accelerating, that's a very good business to be in.
Image source: Getty Images.
The numbers are already getting big GE Vernova generated $38 billion in revenue in 2025. Management now expects $45.5 billion to $46.5 billion in 2026, representing a pretty dramatic increase in just one year.
More recently, the company ended the second quarter with a huge $176 billion backlog. Orders reached $24.2 billion during the quarter, up 88%, with particularly strong demand coming from the Power and Electrification businesses.
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That backlog gives you something many industrial companies don't have: visibility. GE Vernova already has customers lining up years in advance for the equipment they'll need to generate and move electricity. And, of course, artificial intelligence (AI) adds another catalyst.
Data center-related orders exceeded $5 billion during the first half of 2026, more than double the company's total for all of 2025. If AI continues driving the construction of enormous data centers, utilities will need more generating capacity, transformers, substations, switchgear, and transmission equipment. GE Vernova sells all of it.
The natural gas angle GE Vernova's gas turbine backlog and slot reservations reached 116 gigawatts during the second quarter, up from 100 gigawatts just three months earlier. Management expects that number to reach at least 125 gigawatts by year-end.
The company is responding by expanding annual gas-turbine output from 20 gigawatts in 2026, with plans to reach 30 gigawatts by 2030. GE Vernova has more than 7,000 gas turbines installed worldwide, creating a deep recurring service business, too. Its total services backlog now stands at $88.5 billion. And I suspect that in 10 years, services will account for an even larger share of total revenue.
The grid could be the real winner Electrification may ultimately become GE Vernova's most important growth engine. Its equipment backlog in that business reached $35 billion in 2025, more than quadrupling in four years. Management expects it to roughly double again by 2028.
This is one of the easiest parts of the GE Vernova thesis to understand. Whether electricity comes from natural gas, solar, wind, or nuclear, somebody still has to move it from the power plant to the customer. The grid needs transformers, switchgear, and high-voltage equipment. GE Vernova supplies those products.
And then there's nuclear GE Vernova Hitachi's BWRX-300 small modular reactor (SMR) is now under construction in Ontario. The company expects to finish construction on this first SMR by the end of 2029 and begin commercial operations by the end of 2030.
If that project proves SMRs can be built economically and on schedule, GE Vernova could enter the 2030s with another substantial growth business. That's not something I'm factoring heavily into the stock today. But by 2036, nuclear power could be considerably more important to this company than the market currently appreciates.
Not everything will work GE Vernova's Wind business had a $275 million loss on an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) basis during the second quarter, compared with a $165 million loss a year earlier. Wind orders also fell roughly 40%. That's a reminder that growth hasn't been uniform.
The bigger concern, though, is valuation. GE Vernova today isn't the same bargain it was shortly after the 2024 spinoff. But I'm much more interested in what the business could look like in 2036 than what investors are willing to pay for it next quarter. By then, I expect GE Vernova to be a substantially larger company with a much bigger installed base, significantly more recurring service revenue, and major businesses spanning gas, grid infrastructure, and potentially nuclear.
I wouldn't be surprised to see annual revenue well above $70 billion by then. That's my estimate, not management's expectation, and it doesn't require spectacular growth. Going from roughly $46 billion in 2026 to $70 billion in 2036 requires only about 4.3% annualized growth.
The bigger opportunity, though, could come from margins and cash flow. GE Vernova is already targeting a 20% adjusted EBITDA margin by 2028, with revenue of $38 billion and an 8.4% adjusted EBITDA margin in 2025. If management can combine moderate long-term revenue growth with that level of profitability, GE Vernova could generate enormous cash flows during the next decade. And that's ultimately why I'm bullish on the stock for the long haul.
Anthropic varuje, že datová centra pro AI narážejí hlavně na nedostatek elektřiny; do roku 2028 může americký AI sektor potřebovat 50 GW. Z toho těží GE Vernova, jejíž objednávky těžkých plynových turbín ve druhém čtvrtletí vyskočily čtyřnásobně.
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.
Ceny plynových turbín od roku 2019 vzrostly o 195 % a těží z toho GE Vernova, Siemens Energy i Mitsubishi Heavy Industries. Poptávku žene hlavně energie pro datová centra s AI.
After an extremely difficult period at the end of the past decade, when the market wrote off fossil fuels in favor of renewable energy, natural gas has come back in a big way, driven by demand for power from artificial intelligence (AI) data centers. That's sent shares of the leading gas turbine and services companies GE Vernova (GEV +0.00%), Siemens Energy, and Mitsubishi Heavy Industries soaring in recent years. They still offer excellent ways to gain exposure, as does a lower-risk exchange-traded fund (ETF) such as the Global X MLP & Energy Infrastructure ETF (MLPX +0.49%). Here's why buying both gives balanced exposure to the investing theme.
The investment case for GE Vernova According to leading industry analyst Wood Mackenzie, gas turbine prices have increased by 195% since 2019. It's a remarkable turnaround, and it's evident in the growth of GE Vernova's remaining performance obligations (RPO) during that period. It currently stands at $176 billion and, based on its order pipeline, Chief Executive Officer Scott Strazik is confident it will reach $200 billion in 2027, representing a near-doubling from 2022.
Data source: GE Vernova. Chart by author.
In addition to RPO growth (largely driven by order growth), readers should note a couple of bullish points on top.
First, GE Vernova's services are higher-margin, and it offers long-term service agreements with its gas turbine equipment sales, allowing it to lock in an extended income stream. Every single piece of gas turbine equipment adds to its installed base and, consequently, to its long-term earnings and cash-flow potential.
Second, zeroing in on the power segment's equipment backlog, Strazik said it increased from 44 gigawatts (GW) to 53 GW in the second quarter, and its slot reservation agreements (SRAs) increased from 56 GW to 63 GW. SRAs involve upfront payments by customers to secure a manufacturing slot in the future, and their growth signals how hot demand is.
Putting these points together, every time GE Vernova wins more orders and increases its backlog, investors should pencil in more future cash flow (from service revenue) and more near-term cash flow (from SRAs).
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Is GE Vernova stock still a good value? To illustrate this point and demonstrate how GE Vernova's near- and long-term projections can increase on the back of continued earnings momentum, here's a look at how management and Wall Street analysts raised near- and long-term free-cash-flow (FCF) estimates after the recent strong earnings results.
Wall Street Analyst Average Estimate
Full Year 2026 (Before Results)
Full Year 2026 (After Results)
Full Year 2029 (Before Results)
Full Year 2029 (After Results)
Full Year 2032 (Before Results)
Full Year 2032 (After Results)
Free cash flow
$6.9 billion
$12.4 billion
$10.3 billion
$10.9 billion
$10.9 billion
$14.7 billion
Data source: Visible Alpha.
To be clear, GE Vernova's current market cap is about $240 billion, putting it at just under 20 times full-year 2026 FCF. This valuation is fine, but as you can see above, Wall Street sees 2026 FCF as a near-term peak (note the decline in 2029), driven by SRAs, before more services revenue kicks in (hence the increase by 2032) to drive FCF higher. Therefore, investors should buy the stock only if they are confident its orders and SRAs will continue to grow strongly in the coming years, as more SRAs drive near-term cash flow higher.
There's another growth story in natural gas The growth in the installed base of gas turbine equipment implies growth not only in gas turbine services but also in the natural gas used to fuel gas turbines.
That's great news for natural gas-focused companies, such as pipeline and storage facilities companies held in the Global X MLP & Energy Infrastructure ETF. Buying into the ETF obviates the need to pick winners in the sector and provides broad-based exposure to 29 relatively high-yielding stocks, with the ETF currently yielding more than 4%.
It's a relatively safe way to play the theme, as evidenced by its lower volatility than that of GE Vernova in recent years.
GEV Total Return Level data by YCharts
The ETF's exposure to midstream energy companies (transportation, storage, and infrastructure) that earn fee-based revenue gives it upside exposure to increased natural gas volumes as more heavy-duty gas turbines, such as GE Vernova's, are used. Combining an investment in GE Vernova with this ETF provides balanced exposure to growth in gas turbines and natural gas volumes.
That said, based on the valuations discussed above, GE Vernova is a stock to buy only if you believe in its order and backlog momentum. MLPX, by contrast, may better suit more conservative investors seeking lower-volatility, yield-oriented exposure to the same natural gas volume growth theme.
GE Vernova ve 2. čtvrtletí zvýšila objednávky organicky o 88 % na 24,2 miliardy USD a backlog vzrostl na zhruba 176 miliard USD. Objednávky pro datová centra v první polovině roku 2026 přesáhly 5 miliard USD, více než dvojnásobek celého roku 2025.
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 zvýšila celoroční výhled pro 2026 a backlog meziročně vyskočil o 88 % na 176 miliard USD. Slabý zůstává wind segment, kde objednávky ve čtvrtletí klesly o 40 % a letos má ztrátu 400 milionů USD.
GE Vernova's (GEV -0.95%) stock price shot up 80% in the first half of 2026, but has since retreated from its peak. The stock trades under $1,000 now, having declined more than 10% in just the past month. Is this recent pullback a signal that GE Vernova is a bargain or a trap? Let's have a look.
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GE Vernova's fundamentals are strong. The company beat second-quarter expectations while reporting an 88% year-over-year jump in its backlog. GE Vernova's $176 billion backlog provides significant visibility into near- and intermediate-term revenue. The company's profitability metrics have risen substantially.
Vernova also raised its full-year 2026 guidance in its latest earnings release, with free cash flow potentially reaching $12.5 billion.
So what's the problem? The answer is blowing in the wind, as the song goes. GE Vernova's wind segment is struggling mightily, and orders decreased 40% year over year in this latest quarter. The wind segment's losses are also widening. It's expected that the wind business will hit a staggering $400 million loss this year.
Image source: The Motley Fool.
Although the slumping wind division is a drag on GE Vernova, its power and electrification segments are more than pulling their weight and will continue to do so for quite some time. AI infrastructure needs are still in an early stage, and GE Vernova is capitalizing on the momentum.
The company's incredible backlog and AI-driven demand for power put GE Vernova in an enviable position. The stock still trades at a premium with a forward P/E ratio nearing 35. GE Vernova's market cap is nearly double what it was a year ago.
The honest answer is that GE Vernova under $1,000 is not a bargain, but it also can't be classified as a trap. The decline in the wind segment is real, but calling it a trap is too harsh. There's upside potential left as the AI build-out continues through 2027 and beyond, but volatility will remain as the pricing of GE Vernova's stock still doesn't leave much room for execution risks.
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.
GE Vernova má backlog 176 miliard USD, který je meziročně vyšší o 37 % a odráží silnou poptávku po energetických zařízeních. Backlog je rozdělen na zakázky na zařízení za 87,8 miliardy USD a služby za 88,4 miliardy USD.
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.
GE Vernova za první pololetí získala zakázky na datová centra za 5 miliard USD, více než dvojnásobek loňských tržeb z této oblasti. Celkový backlog vzrostl na 176 miliard USD.
It's no secret that the rapid proliferation of AI data centers has been a boon for GE Vernova (GEV -2.17%). As management highlighted during last month's earnings conference call, the second quarter's $2.7 billion worth of data center power equipment orders brings its year-to-date data center orders up to $5 billion, more than doubling all of last year's data center-related revenue.
Look for similar growth ahead as well. The company's total backlog now stands at $176 billion, up from just $150 billion as of the end of 2025, despite doing over $20 billion worth of business in the meantime. The stock has reflected this growth too. GE Vernova shares are up 57% year to date, and are higher to the tune of 450% for the past two years... when the AI data center industry took a keener interest in meeting its own electricity needs with on-site power plants.
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The question is, does this big move mean there's no upside left to reap?
Tailwinds are blowing Don't misread the message. It's unlikely GEV shares will be performing as well in the foreseeable future as they have in the recent past. The cat's out of the bag, so to speak -- almost everyone understands just how important natural gas power turbines have become to the artificial intelligence data center industry.
PwC expects AI data center-driven consumption of natural gas to more than quintuple between now and 2035. That expectation is largely what's reflected in this stock's recent run-up to a premium valuation of more than 40 times next year's consensus per-share profit of $24.87.
Image source: Getty Images.
Just don't pass up what's still an above-average prospect simply because most of that stock's biggest and best gains are in the rearview mirror. This company has plenty of upside ahead, even following its recent rally. Its current backlog represents nearly five years' worth of the company's current annualized revenue, and that backlog is sure to grow in the meantime.
For perspective, the International Energy Agency believes AI data centers' consumption of electricity will double from 2024's levels by 2030. The utility industry isn't in a position to meet that need. These technology companies are going to need to supply their own power with equipment like GE Vernova's.
Follow analysts' lead The tailwinds are undeniably blowing now, and will continue to do so. But does that alone make the stock a buy here and now at its lofty price? Arguably, yes. GEV has a long earnings growth runway ahead to justify its current valuation. Analysts with Morningstar expect this company's profits to reach $51.12 per share in 2030, roughly doubling next year's bottom line projection.
Data source: Morningstar. Chart by author.
This might help: Even with the stock's recent, sizable gains, the analyst community is still very much on board. Most of them still rate GEV stock as a strong buy, with a 12-month consensus price target of $1,247.66 that's more than 20% above this ticker's present price. That's not a bad way to start out a new longer-term position.
Morgan Stanley odhaduje, že americká datová centra budou mít do roku 2028 potenciální nedostatek 38 GW výkonu. Z toho mohou těžit GE Vernova, Eaton a Vertiv, které dodávají výrobu, distribuci a chlazení energie.
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 zakončila 2. čtvrtletí s backlogem 176 miliard USD, když organické objednávky vyskočily o 88 % na 24,2 miliardy USD. Tržby vzrostly o 22 % na 11,1 miliardy USD.
Key Takeaways GE Vernova's backlog reached $176 billion as orders surged 88% organically to $24.2 billion.Gas backlog and slot reservations rose to 116 GW, while data-center orders topped $5 billion year to date.GE Vernova's Q2 revenues grew 22%, while adjusted EBITDA rose 62% and free cash flow reached $5.1 billion. GE Vernova Inc. (GEV - Free Report) has entered into latter half of 2026 with a robust backlog that strengthens its revenue outlook. As electricity consumption continues to rise, growing demand for the company’s power-generation and grid technologies is translating into a stronger order pipeline and greater visibility into future business performance.
The company ended the second quarter of 2026 with a $176-billion backlog, up $13 billion sequentially, while orders increased 88% organically to $24.2 billion. Power and Electrification led the gains, reflecting accelerating demand for generation and grid infrastructure.
The strength of GE Vernova’s Power business is particularly notable. Gas equipment backlog and slot reservation agreements increased from 100 gigawatt (GW) to 116 GW, and management expects at least 125 GW by year-end. Electrification continues to benefit from grid investment and data-center demand, with data-center orders exceeding $5 billion year to date.
The company’s backlog expansion is already being accompanied by stronger financial results. GE Vernova generated $11.1 billion of revenues in the second quarter, up 22% year over year, while adjusted EBITDA increased 62% to $1.25 billion. Adjusted EBITDA margin expanded to 11.3% from 8.5% a year earlier. Free cash flow reached $5.1 billion in the quarter compared with just $194 million in the second quarter of 2025.
With electricity consumption, grid investment and generation requirements creating structural opportunities across its portfolio, the company’s growing backlog could remain one of its most important drivers of revenue and earnings growth over the next several years.
Companies Benefiting From the TrendThe broader industry is experiencing a similar investment cycle. U.S. utilities are increasing capital spending as data centers, industrial activity and electrification drive electricity demand.
Southern Company (SO - Free Report) : The company is positioned to benefit from rising electricity demand in its service territories and continued investment in generation and grid infrastructure.
Entergy Corporation (ETR - Free Report) : Its service territories include areas experiencing industrial and data-center-related load growth, creating opportunities for additional generation and grid investment.
Earnings Estimates for GEVThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 74.11% and that for 2027 EPS implies a decline of 21.2% 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 39.79X compared with the industry average of 25.39X.
Image Source: Zacks Investment Research
GEV Stock’s Price PerformanceIn the past six months, the company’s shares have risen 30% against the industry’s 4.2% 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 (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.
GE Vernova zvýšila celoroční výhled tržeb na 45,5 až 46,5 miliardy USD a volného cash flow na 11,5 až 12,5 miliardy USD po silném druhém čtvrtletí. Ziskovost však zaostala za odhady a větrná divize dál prodělává.
Two years after its spinoff from General Electric, GE Vernova NYSE: GEV has become a key player in the artificial intelligence buildout.
GE Vernova Today
$1,039.43 +27.55 (+2.72%)
As of 03:58 PM Eastern
52-Week Range$530.16▼
$1,195.94Dividend Yield0.19%
P/E Ratio29.75
Price Target$1,133.15
It doesn’t make chips or software. The giant industrial company makes the turbines, grid equipment, and nuclear technology that help keep AI data centers running.
Today, this nearly $270 billion company is showing up on lists of growth names to watch. Up about 55% this year, its stock still has some room to run, analysts believe.
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But while its latest earnings showed the strength of its business, there were some soft spots reported that are worth watching. Investors might want to know the full story rather than simply following the top numbers and mentions of AI.
Strong Revenue Growth Builds a Record BacklogGE Vernova reported second-quarter 2026 results on July 22, showing strong growth at the top line, but weaker toward the bottom.
Revenue rose 22% year-over-year (YOY) to $11.1 billion, comfortably ahead of Wall Street's consensus estimate of $10.79 billion. Orders more than doubled, surging 88% organically to $24.2 billion. That pushed the company's total backlog to $176 billion, up $13 billion in just three months, with management targeting $200 billion in 2027.
In other words, the outlook looks strong as the backlog represents years of future revenue already under contract. In particular, gas turbine capacity booked for slot reservations climbed from 100 gigawatts to 116 gigawatts in the quarter, with management now expecting to reach at least 125 gigawatts by year-end.
Profitability Falls Short of ExpectationsThen came the numbers further down the P&L. Adjusted earnings per share came in well below the roughly $3.17 analysts had modeled, even as net income still rose to $649 million, or $2.47 per diluted share, from $492 million, or $1.86 per share, a year earlier.
Adjusted EBITDA grew 62% YOY to $1.25 billion, with margin expanding 340 basis points organically to 11.2%. That was apparently below what Wall Street expected, as equipment revenue in electrification and power is growing faster than the more profitable services business right now.
The power segment reported orders of $16.7 billion increased 134% organically, while revenue of $5.5 billion was an increase of 14%, led by the gas power equipment sector. Electrification orders increased 66% organically to $6.3 billion.
Wind orders, however, dropped 40% organically to just $1.2 billion.
In other words, GE Vernova is growing faster than expected but converting that growth into profit more slowly than expected.
Cash Flow Provides a Major Bright SpotWhat was impressive was the quarter's cash. Free cash flow hit $5.1 billion in the quarter alone, up $4.9 billion, and more than all of 2025's total. This was driven largely by customers making bigger upfront payments to reserve turbine slots.
That cash pile helped push the cash balance sheet to $13.1 billion, up $4.3 billion in the year. Management has already returned $3.9 billion to shareholders this year through buybacks and a 50-cent quarterly dividend, which today yields just 0.2%.
Buoyed by that cash generation, management also raised full-year revenue guidance to a range of $45.5 billion to $46.5 billion and lifted free cash flow guidance to $11.5 billion to $12.5 billion.
Wind Losses and Valuation Create RisksThose big numbers, however, do not erase the problems. As noted, the first is wind. The segment's revenue of $2 billion represented a decline of 11% organically in the quarter, and it posted an EBITDA loss of roughly $275 million.
That’s part of an expected full-year loss of nearly $400 million as weak U.S. onshore demand, permitting delays, and tariffs continue to weigh on the business. Management has guided to a net tariff impact of $250 million to $350 million for 2026 across the whole company, a cost included in the guidance but still a painful hit to margins.
The second issue is valuation. At a trailing price-to-earnings ratio near 30, GEV trades well above levels that value investors favor, and that premium might be hard to maintain if this type of quarter repeats.
Competition also exists. GE Vernova sits at the center of the AI power story alongside NuScale Power NYSE: SMR in nuclear, traditional rivals Siemens Energy and Vestas Wind Systems battling for global turbine share, and Eaton NYSE: ETN, which competes in the electrification and grid equipment space that is one of GE Vernova's fastest-growing segments.
Analysts Remain Bullish on GE Vernova Health Indicator for GE Vernova TradeSmith's Health IndicatorA long-term volatility-based measure designed for securities held 12 months or longer.
Green: Strong and healthy uptrend with normal pullbacks.
Yellow: Significant pullback but still within expected volatility.
Red: Dropped beyond expected volatility; considered unhealthy.
Green Zone (2m+)
1-Year History
Aug 25 Nov 25 Feb 26 May 26 Aug 26
GEV's financial health is in the Green zone, according to TradeSmith. GEV has been in this zone for over 2 months.
Even with the risks, GE Vernova is a powerhouse that has analysts taking a positive view. The stock carries a consensus rating of Moderate Buy from 30 analysts, split among two Strong Buy ratings, 22 Buy ratings, five Holds, and only one Sell.
The average 12-month price target set by analysts is $1,133.15, implying roughly 10% upside from current levels at about $1,042. The high target is $1,450 while the lowest is set at $580, clearly indicating there might be more to the story.
Growth Potential Comes at a PremiumOverall, GE Vernova remains one of the more legitimate ways to invest in the electricity demands of artificial intelligence. Backed by a record backlog, the company’s orders are surging, and cash flow is accelerating.
But this is not a value stock trading at a discount. It is premium priced and just showed investors it can still stumble on profitability.
Investors should understand that wind losses, tariff costs, and a rich valuation leave little room for error. Revenue growth is likely coming, but the rest remains to be seen.
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Should You Invest $1,000 in GE Vernova Right Now?Before you consider GE Vernova, you'll want to hear this.
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GE Vernova oznámila, že objednávky ve 2. čtvrtletí vzrostly organicky o 88 % na 24,2 miliardy USD a backlog stoupl na zhruba 176 miliard USD. Zájem o plynová zařízení dál roste.
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 -1.00%), the former energy division of General Electric (GE -1.19%) that was spun off as a stand-alone company in 2024, has soared since its market debut. Its stock opened at $143 on the first day, and it's trading at around $994 as of this writing.
The rapid growth of the power-hungry cloud, artificial intelligence (AI), and data center markets generated strong tailwinds for GE Vernova's business, and its backlog swelled 37% year over year to $176.3 billion in the second quarter of 2026. Yet over the past month, its stock dipped by about 5% while the S&P 500 rose by 3%. Let's see why it lost momentum and whether that pullback represents a good buying opportunity for long-term investors.
Image source: Getty Images.
How fast is GE Vernova growing? GE Vernova operates three main segments: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). The Power segment develops gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants, and provides services for nuclear power plants. The Electrifification segment sells transformers, breakers, substations, high-voltage direct current systems, along with automation, optimization, and protection services for electrical grids. The Wind segment primarily sells onshore and offshore wind turbines.
GE Vernova's total orders grew 34% organically in 2025, accelerating from its 7% growth in 2024. Its Power and Electrification orders surged 51% and 23%, respectively, as more utilities expanded their infrastructure to support the growing cloud and AI markets. That robust growth offset the slower growth of its Wind segment, which grappled with supply chain issues.
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In the first half of 2026, its total orders grew 89% year over year. Its Power and Electrification orders rose 99% and 131%, respectively, easily offsetting its 11% decline in Wind orders. For the full year, it expects its revenue to rise 19% to 22%, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to expand from 8.4% to 12%-14%.
Why did GE Vernova's stock pull back? GE Vernova's business is firing on all cylinders, but a few issues weighed down its stock after its second-quarter report on July 22. First, its adjusted EBITDA and EPS missed Wall Street's expectations as it ramped up spending to increase its capacity and recognized additional losses from the Wind division's offshore and onshore segments. Second, GE Vernova was already priced for perfection. Therefore, any perceived imperfections would drive its stock lower.
With an enterprise value of $255 billion, GE Vernova still isn't cheap at 40 times this year's adjusted EBITDA. However, I believe the AI-driven growth potential of its Power and Electrification businesses justifies that higher valuation and makes it a great buy today.
GE Vernova v červenci klesla o 15,7 %, i když ve 2. čtvrtletí opět zvýšila celoroční výhled tržeb, zisku i volného peněžního toku. Trh připomněl, že při ocenění na 33násobek odhadovaného zisku na rok 2026 záleží na tempu objednávek.
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.
Morgan Stanley říká, že AI datová centra budou do roku 2028 potřebovat dalších 68 GW elektřiny a vznikne deficit 1 až 11 GW. Největším vítězem má být GE Vernova díky dominanci na trhu velkých plynových turbín.
The artificial intelligence investment boom has created an unexpected reality: building the world’s fastest chips is no longer the hardest part of expanding AI infrastructure. Finding enough electricity to power those chips has become the new challenge.
Utilities are racing to expand generation, electricity prices are climbing in many regions, and communities are pushing back against the rapid construction of power-hungry data centers. New York even became the first state to impose a one-year moratorium on new data center construction.
As investors look for the next phase of the AI buildout, the companies supplying electricity — not semiconductors — may offer a bigger opportunity.
AI’s Biggest Constraint Isn’t Chips — It’s Power Morgan Stanley believes U.S. data centers will require another 68 gigawatts (GW) of electricity between 2026 and 2028. Yet the investment bank estimates projects already under construction account for only 15 GW, while another 15 GW is covered through available or contracted grid capacity. That leaves a 38 GW gap before any alternative solutions are considered.
To put that into perspective, GPUs sitting in idle data centers generate no revenue. AI infrastructure only produces returns when electricity is available to run it. Power has become the scarce resource.
Morgan Stanley modeled several ways the industry could narrow that gap:
Solution Estimated Capacity Natural gas turbines 15 GW to 20 GW Fuel cells 5 GW to 8 GW Co-located nuclear plants 3 GW to 5 GW Repurposed Bitcoin mining sites 10 GW to 19 GW Even after assigning probabilities to each solution, Morgan Stanley’s base case still leaves a 1 GW to 11 GW supply deficit through 2028.
That matters because even a narrow shortfall means some planned AI deployments will likely face delays, higher construction costs, or cancellation. It also points to tighter regional electricity markets, higher wholesale power prices, greater demand for behind-the-meter generation, and a faster shift toward facilities that already have grid access.
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Why GE Vernova Has The Strongest Position Every company helping solve this bottleneck stands to benefit, but not every solution carries the same weight.
Morgan Stanley’s analysis identifies natural gas turbines as the largest contributor toward closing the power gap. That makes GE Vernova (NYSE:GEV | GEV Price Prediction) the clearest beneficiary because it dominates the market for large-frame gas turbines and already has a multiyear order backlog driven in part by data center demand.
Other companies also fit the theme.
Company Why It Benefits Bloom Energy (NYSE:BE) Fuel cells can be deployed faster than waiting years for grid interconnections. Constellation Energy (NYSE:CEG), Vistra (NYSE:VST), Talen Energy (NYSE:TALO) Existing nuclear fleets make co-location with hyperscale data centers possible. Core Scientific (NASDAQ:CORZ), IREN (NASDAQ:IREN), Cipher Mining (NASDAQ:CIFR) Existing grid connections at Bitcoin mining facilities can be converted to AI computing campuses. Ironically, some of the biggest AI infrastructure winners may not be AI companies at all. Owners of existing power assets suddenly possess something every hyperscaler desperately needs: electricity that can be delivered today instead of years from now.
Key Takeaway In short, Morgan Stanley’s research suggests the AI industry’s biggest obstacle has shifted from semiconductor supply to electricity supply. Even if every practical solution is deployed, the U.S. could still face a 1 GW to 11 GW power shortage through 2028, enough to delay portions of planned AI capacity and increase the value of companies that already control power generation or fast-to-market energy solutions.
Granted, Bloom Energy, Constellation, Vistra, Talen, Core Scientific, IREN, and Cipher Mining all have ways to capitalize on this trend. But the numbers point most directly toward GE Vernova. Natural gas turbines represent the largest lever for closing the projected capacity gap, and GE Vernova already leads that market with years of demand sitting in its backlog.
As the AI buildout moves from buying chips to finding electricity, GE Vernova looks positioned to capture one of the most durable opportunities of the next phase of the AI revolution.
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GE Vernova ve čtvrtletí zvýšila tržby o 22 % na 11,1 miliardy USD a backlog vzrostl na 176 miliard USD. Akcie po výsledcích klesly o 9 % po zveřejnění výsledků kvůli slabšímu zisku na akcii a nižší EBITDA.
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 po výsledcích za druhé čtvrtletí zvýšila celoroční výhled na tržby i volný peněžní tok. Tržby vzrostly o 22 %, zakázky o 88 % na 24,2 miliardy USD a backlog dosáhl rekordu 176 miliard USD.
Shares of GE Vernova (GEV -1.59%) fell roughly 6% on Wednesday after the company released its second-quarter earnings. While earnings per share missed Wall Street's expectations and the wind segment dragged down performance, investors are overlooking results that contained significant positive news.
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Revenue grew 22% while orders skyrocketed 88% to $24.2 billion. As a result, GE Vernova's backlog reached a record $176 billion. Free cash flow also increased to $5.1 billion. The company's management raised its full-year guidance on both revenue and free cash flow.
The wind segment's revenue decreased 10%, with orders falling another 40%. Wind is expected to lose GE Vernova about $400 million this year. Weak demand, rising expenses, and tariffs are the main culprits.
Image source: The Motley Fool.
While the wind story isn't good, it's an increasingly irrelevant piece of a much brighter narrative for GE Vernova. The company's power and electrification divisions are rapidly expanding and are the main drivers of revenue and future growth. Investors selling GE Vernova because of a struggling wind segment are missing a bigger opportunity. Growth in AI-related infrastructure needs will continue for several more years, and GE Vernova is well-positioned to capture much of it.
If anything, this slight price dip is an opportunity for investors to buy the stock for the long term. GE Vernova is currently trading well off its 52-week high of $1,195 at about $985 as of July 22. The stock is still up over 50% on the year.
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.
GE Vernova zveřejnila výsledky za 2. čtvrtletí 2026 a na konferenčním hovoru uvedla, že meziroční změny objednávek, tržeb a EBITDA jsou očištěné o akvizici Prolec GE.
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 uvedla, že je u plynových turbín „většinou vyprodána“ až do roku 2030 a do konce roku čeká nejméně 125 gigawattů v zakázkách. Firma už má podepsané dohody i na rok 2031.
Artificial intelligence has fueled a surge in demand for power infrastructure, but GE Vernova Inc. (NYSE:GEV) says investors may still be underestimating just how far into the future that demand now stretches.
Speaking on the company’s second-quarter earnings call Wednesday, CEO Scott Strazik said GE Vernova expects to finish the year with at least 125 gigawatts of gas turbines under contract—enough to leave the company “mostly sold out through ’30” while already filling production slots for the following year.
The comments offer one of the clearest signs yet that utilities, hyperscalers and other large customers are locking in electricity infrastructure years in advance as AI data centers, electrification and grid modernization reshape long-term power demand.
Production Slots Are Filling Years AheadGE Vernova’s gas power business continued to benefit from strong global demand during the quarter, signing 20 gigawatts of equipment orders and slot reservation agreements while increasing total contracted capacity from 100 gigawatts to 116 gigawatts. The company now expects that figure to reach at least 125 gigawatts before year-end.
Strazik said the company already has “agreements signed into ’31” and expects “to have sold more than half of the 30 gigawatts of ’31 production slots by the end of this year,” underscoring how customers are committing to capacity years before equipment is scheduled to ship.
The visibility extends even further. During the question-and-answer session, Strazik revealed there are already “active discussions for ’32 and beyond,” although he cautioned that it is too early to discuss the timing of future contracts.
Why Investors Should Pay AttentionThe headline isn’t simply that GE Vernova has a record backlog. It’s what that backlog says about the durability of electricity demand.
While much of Wall Street has tied the company’s momentum to AI data centers, management described a much broader investment cycle. Strazik said “the long-cycle electric power industry is in the early stages of a multi-decade growth opportunity,” adding that GE Vernova is “in the early stages of this electricity investment supercycle.”
That confidence is allowing the company to expand production capacity without building entirely new factories. GE Vernova now expects annual gas turbine output to reach 30 gigawatts by 2030 through lean manufacturing improvements and incremental investments within its existing footprint, with much of that expansion effectively supported by customer commitments already on the books.
Photo: Saskia B / Shutterstock
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GE Vernova oznámila za 2. čtvrtletí zisk na akcii 2,47 USD, což je pod odhadem 3,17 USD. Tržby činily 11,1 miliardy USD a překonaly konsenzus o 3,12 %.
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 zvýšila výhled tržeb na rok 2026 na 45,5 až 46,5 miliardy USD a volné cash flow na 11,5 až 12,5 miliardy USD. Tahounem jsou silné objednávky v Power a Electrification.
AI Data Centers Need Power, and These 2 Industrials Are Cashing InGE Vernova NYSE: GEV raised its 2026 revenue and free cash flow outlook after reporting sharply higher second-quarter orders, expanded backlog and stronger margins, as management said demand for power generation and grid equipment continues to accelerate globally.
Chief Executive Officer Scott Strazik said the company is benefiting from what he described as the early stages of a multi-decade growth opportunity in the electric power industry. GE Vernova’s total backlog reached $176 billion at the end of the quarter, up $13 billion sequentially, with management saying it remains on track to reach $200 billion in 2027.
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MarketBeat Week in Review – 07/06 - 07/10“Our team is executing well as the demand for our solutions in power and electrification accelerates,” Strazik said. He noted that equipment orders more than doubled in the quarter, while service orders grew 15%.
Orders Rise 88% as Backlog Expands Chief Financial Officer Ken Parks said GE Vernova booked $24.2 billion of orders in the second quarter, an 88% year-over-year increase, with a book-to-bill ratio of slightly more than two times. Revenue rose 12%, including 14% growth in equipment revenue and 10% growth in services revenue.
GE Vernova’s Power Surge Turns the Grid Into an AI TradeAdjusted EBITDA increased 61% year-over-year to $1.2 billion, and adjusted EBITDA margin expanded 340 basis points. Parks attributed the margin improvement to more profitable volume, higher pricing and productivity gains that more than offset inflation.
Free cash flow was $5.1 billion in the quarter, up $4.9 billion from a year earlier. Parks said working capital provided a $6.4 billion cash benefit, mainly from higher down payments tied to increased orders and slot reservations in Power and higher orders in Electrification.
The company ended the quarter with approximately $13 billion in cash, up $3 billion from the end of the first quarter, after returning $2.5 billion to shareholders through dividends and share repurchases during the quarter. Under its $10 billion share repurchase program, GE Vernova has repurchased about $7 billion of stock, representing 12.4 million shares at an average price of $560 per share.
Power Segment Fueled by Gas Turbine Demand In Power, orders more than doubled, driven by Gas Power equipment orders that increased approximately four times year-over-year. GE Vernova shipped three gigawatts of gas equipment during the quarter while signing 20 gigawatts of orders and slot reservation agreements in markets including the U.S., Brazil and Qatar.
Strazik said the company’s total gigawatts under contract increased sequentially from 100 to 116 gigawatts, including orders for 52 heavy-duty units and 61 aeroderivative units in the quarter. He said more than half of the gigawatts under contract are for GE Vernova’s HA turbines, which are expected to run at baseload and support services growth in the next decade.
Power revenue increased 14%, and segment EBITDA margin expanded 320 basis points to 18.8%. Parks said the improvement was mainly driven by favorable pricing and higher volume, partially offset by inflation and expenses tied to capacity and research and development investments.
For the third quarter, GE Vernova expects Power revenue growth of 17% to 19% and EBITDA margin of approximately 17% to 18%.
Electrification Backlog Grows on Grid and Data Center Demand Electrification orders increased 66% year-over-year to approximately $6.3 billion, or about 1.7 times revenue, as demand grew for substations, switchgear and transformers. Parks said equipment orders growth was particularly strong in North America, rising approximately four times year-over-year.
Strazik said GE Vernova booked $2.7 billion of data center orders in Electrification during the second quarter, bringing first-half data center orders in the segment to more than $5 billion, more than double the full-year 2025 level. Electrification equipment backlog rose to $41 billion, up 69% from the second quarter of 2025.
Revenue in Electrification increased 68% on a reported basis, including the impact of Prolec, and 29% organically. Prolec contributed nearly $900 million of revenue in the quarter. Segment EBITDA more than doubled, with margin expanding 700 basis points to 18.4%.
For the third quarter, the company expects Electrification revenue of $3.8 billion to $4 billion and continued year-over-year EBITDA margin expansion, with margins modestly above second-quarter levels.
Wind Losses Continue, but Services Improve GE Vernova’s Wind segment remained under pressure. Orders declined 40%, mainly due to lower onshore equipment orders in North America, partially offset by higher services orders. Revenue declined 11%, reflecting lower onshore equipment deliveries, partly offset by higher onshore services and offshore revenue tied to Dogger Bank B activity.
Wind reported EBITDA losses of $275 million in the quarter, which Parks said was in line with expectations. The loss widened year-over-year because of lower onshore equipment deliveries and higher offshore project costs, partially offset by improved onshore services.
For the third quarter, management expects Wind revenue to decline at a low double-digit rate year-over-year, while EBITDA is expected to be approximately break-even. For the full year, GE Vernova continues to expect Wind EBITDA losses of about $400 million.
2026 Guidance Raised on Strong First Half GE Vernova raised its 2026 revenue outlook to $45.5 billion to $46.5 billion, up $1 billion from its previous forecast, citing additional growth in Electrification and Power. The company maintained its adjusted EBITDA margin guidance of 12% to 14%.
The company also increased its 2026 free cash flow guidance to $11.5 billion to $12.5 billion, up from a prior range of $6.5 billion to $7.5 billion. Parks said the higher forecast reflects stronger orders and down payments, along with higher adjusted EBITDA.
Power organic revenue is now expected to grow 18% to 20% in 2026, with EBITDA margins of 17% to 19%. Electrification revenue guidance was raised by $500 million to $14.5 billion to $15 billion, with EBITDA margins still expected at 18% to 20%. Wind organic revenue is still expected to decline at a low double-digit rate. During the question-and-answer session, Strazik said GE Vernova remains on track to increase Gas Power output from roughly three gigawatts per quarter to five gigawatts per quarter starting in the third quarter, reaching a 20-gigawatt annualized run rate. He said the company now sees an opportunity to reach 30 gigawatts of annual output in 2030 through lean initiatives, incremental machinery and use of existing factory space.
Strazik also said the company expects to end 2026 with at least 125 gigawatts under contract and that it is “mostly sold out” through 2030, with more than half of 2031 production slots expected to be contracted by year-end.
Management said GE Vernova continues to invest in capacity, research and development, robotics and automation. Strazik said the company completed the acquisition of Robotech Automation in early July, describing it as a small transaction that could help improve productivity across the business.
About GE Vernova (NYSE:GEV)GE Vernova is the energy-focused company formed from the energy businesses of General Electric and operates as a publicly listed entity on the NYSE under the ticker GEV. It is organized to design, manufacture and service equipment and systems used across the power generation and energy transition value chain, bringing together legacy capabilities in conventional power, renewables and grid technologies under a single corporate platform.
The company’s offerings span large-scale power-generation equipment such as gas and steam turbines and associated generators and controls, as well as renewable energy technologies including onshore and offshore wind platforms and hydro solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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GE Vernova zvýšila celoroční výhled tržeb na 45,5–46,5 miliardy USD díky silné poptávce po elektřině a růstu objednávek. Zároveň očekává, že cla v roce 2026 zvýší náklady o 100–200 milionů USD.
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
GE Vernova zveřejní 22. července výsledky za 2. čtvrtletí; konsensus počítá s tržbami kolem 10,7 miliardy USD a EPS 3,23 USD. Firma těží z boomu AI datacenter a modernizace sítí.
GE Vernova (GEV +1.89%) stock has been on a tear, up 62% already so far in 2026. All eyes are now locked on July 22, when the turbine giant reports its second-quarter earnings before the opening bell.
Expectations are running sky high, and for good reason. From artificial intelligence (AI) data center power boom to the massive grid upgradation and modernization projects, GE Vernova is sitting right in the sweet spot of multiple megatrends.
Here's why its upcoming earnings report could be another big catalyst for GE Vernova stock.
Image source: The Motley Fool.
GE Vernova is firing on all cylinders Consensus estimates are pointing to a blockbuster quarter, projecting around $10.7 billion in revenue and $3.23 in earnings per share. That would be an 18% top-line surge and a 74% leap in profits, year over year.
Can a company this big deliver that kind of explosive growth? For GE Vernova, the answer is a resounding yes, backed by management's own projection of 18% revenue growth at the midpoint for fiscal year 2026.
Hyperscalers are spending hundreds of billions on AI infrastructure, but legacy electrical grids can't move fast enough. Rather than waiting years for grid interconnects, tech giants and data center operators are seeking faster alternatives, such as natural gas turbines, to generate cleaner, reliable "behind-the-meter" power on-site and begin operations quickly.
GE Vernova is the world's largest gas turbine maker. Demand is so intense that its factory slots are already getting booked for 2030. Companies are willing to pay a premium to get the nearest possible slot, and that's showing up on GE Vernova's margins. It reported a net margin of 51% in Q1.
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1,077.82
Beyond turbines, GEV also makes critical electrical equipment, including transformers, circuit breakers, switchgear, and high-voltage transmission systems, needed to connect everything.
Industry lead times for some equipment now stretch to years, giving GE Vernova massive pricing leverage. Again, that's showing up in the numbers – its electrification segment, which sells equipment, bagged more orders from data centers in Q1 last quarter than it did in all of 2025.
Why GE Vernova stock could soar on July 22 and beyond GE Vernova is approaching July 22 with immense operational momentum. While a revenue and earnings beat could easily pop the stock, three other numbers in particular will dictate how high it can go next.
Order and backlog velocity is a no-brainer. Order intake has been on fire, with GEV's Q1 orders surging 71% organically. Its total backlog surged to a whopping $163 billion in Q1, and it now expects it to hit $200 billion in 2027, up from its earlier estimate of 2028.
If they keep ripping at a torrid pace, GE Vernova will lock in high-volume production for years to come.
The next is services within the total backlog. While equipment orders keep the factories humming, services and aftermarket are the actual high-margin profit engine. There's nothing like it if service backlog can grow faster than equipment backlog, because that's where the real cash is to be made.
Finally, will management hit ius with another guidance upgrade? When demand is running this hot, Wall Street doesn't just expect a beat -- it expects a beat and raise. If management hikes its full-year cash flow outlook, in particular, investors can expect much greater value from their GE Vernova shares in the long run. Last quarter, the company projected 2026 free cash flow of $6.5 billion to $7.5 billion.
GE Vernova získala od Stromnetz Berlin dvě zakázky na návrh, dodávku a instalaci 110kV plynem izolovaných rozvoden ve Wittenau a Neuköllnu v Berlíně. Akcie ve čtvrtek klesly o 3,36 %.
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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Trh čeká, že GE Vernova za čtvrtletí vykáže EPS 3,17 USD a tržby 10,77 miliardy USD, tedy meziroční růst o 70,4 % a 18,2 %. Výsledky mají být zveřejněny 22. července.
Wall Street expects a year-over-year increase in earnings on higher revenues when GE Vernova (GEV - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis the energy business spun off from General Electric is expected to post quarterly earnings of $3.17 per share in its upcoming report, which represents a year-over-year change of +70.4%.
Revenues are expected to be $10.77 billion, up 18.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.41% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for GE Vernova?For GE Vernova, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -8.69%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that GE Vernova will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that GE Vernova 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 beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
GE Vernova doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
GE Vernova plánuje do roku 2028 investovat 11 miliard USD do kapitálových výdajů a výzkumu a vývoje. V Itálii dokončila modernizaci laboratoře v Noventa di Piave a rozšiřuje i závod v Sesto San Giovanni za více než 30 milionů USD.
Key Takeaways GE Vernova plans $11B in capex and R&D through 2028 as it scales investments for long-term growth. Its upgraded Noventa lab will test transformers and disconnectors for tougher, renewable-heavy grids. Italy investments include a $30M-plus Sesto expansion, with Noventa adding about 15 workers annually. GE Vernova (GEV - Free Report) is entering a phase of elevated investment, with plans to invest $11 billion in capex and research and development in the 2025-2028 timeframe. As part of this plan, the company recently announced the completion of the modernization of its high-voltage R&D laboratory at the Noventa di Piave site, near Venice, Italy.
The project is part of a broader four-year investment of about $7.2 million to strengthen the site's role in developing technologies that make power grids more reliable, flexible and resilient. As electricity demand increases and more renewable energy is added to the grid, utilities need modern equipment that can operate under tougher conditions. The upgraded laboratory will enable GE Vernova to test critical equipment, such as transformers and disconnectors, before it is installed in power networks.
The investment adds to GE Vernova's ongoing spending across its electrification business in Italy, including the recently announced expansion of the manufacturing facility in Sesto San Giovanni, which is valued at more than $30 million. The Noventa di Piave facility is part of GE Vernova's Electrification segment. With more than 50 years of experience, it has become an important part of the company's operations in Italy.
The site currently employs more than 300 people and plans to hire about 15 additional employees annually in the coming years. The modernization project supports the facility's long-term growth, helps attract skilled workers and strengthens its contribution to the local economy.
Together, the Noventa di Piave and Sesto San Giovanni facilities form an important part of GE Vernova's operations in Italy. They provide manufacturing, research and testing capabilities that support the country's power infrastructure while serving customers in export markets worldwide. GE Vernova has supported Italy's power sector for more than 100 years. Today, its technology helps power about 25% of Italy's electricity generation capacity.
To conclude, GE Vernova's aggressive investment strategy reflects confidence. Going forward, we are likely to see higher capex spending. This also appears to mark a turning point as the company positions itself for growth, stronger margins and long-term value creation.
Taking a Look at the R&D Plans of CompetitorsEmerson Electric (EMR - Free Report) continues to increase investments in research and development to strengthen its automation, software and intelligent industrial technologies portfolio. Following the acquisitions of National Instruments and AspenTech, the company is focusing its R&D efforts on AI-enabled automation, industrial software, machine vision, test and measurement systems, digital twins and advanced process control.
These technologies are designed to help manufacturers improve productivity, optimize energy use and accelerate digital transformation across industries such as power generation, chemicals, life sciences and semiconductors. Emerson spent $771 million on R&D in fiscal 2025, reflecting its continued commitment to product innovation.
Emerson plans to deepen the integration of hardware, software and industrial AI across its automation platform. The company is expanding research into autonomous operations, edge computing, predictive maintenance, cybersecurity and cloud-based industrial software.
Eaton Corporation (ETN - Free Report) continues to prioritize research and development as demand grows for electrification, grid modernization and intelligent power management. The company's innovation strategy focuses on next-generation switchgear, circuit protection, transformers, digital substations, power distribution equipment and energy storage integration.
ETN is also investing in software, power electronics and intelligent electrical systems that help utilities and commercial customers improve grid reliability while supporting renewable energy, electric vehicles and AI-driven data centers. Eaton's long-term investment strategy is centered on the structural growth opportunities created by electrification and digitalization.
ETN's R&D pipeline increasingly targets connected and software-enabled electrical infrastructure. The company is expanding development of digital monitoring platforms, predictive maintenance tools, microgrid technologies and energy management solutions that improve efficiency and resilience across power networks.
GEV Price Performance, Valuation and EstimatesShares of GE Vernova have surged in double digits (% wise) so far this year, easily surpassing the Zacks Alternate Energy – Other industry’s growth.
YTD Price Comparison
Image Source: Zacks Investment Research
GE Vernova trades at a forward 12-month price-to-sales (P/S) ratio of 5.74, above the industry’s reading.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for GEV’s earnings has been revised over the past 30 days.
Image Source: Zacks Investment Research
GEV’s Zacks RankGEV currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Vernova v poslední obchodní den klesla o 6,51 % na 1 077,08 USD. Trh čeká výsledky za 22. července 2026, s odhadovaným EPS 3,23 USD a tržbami 10,78 mld. USD.
GE Vernova (GEV - Free Report) closed the most recent trading day at $1,077.08, moving -6.51% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
The the energy business spun off from General Electric's shares have seen an increase of 23.36% over the last month, surpassing the Oils-Energy sector's loss of 5.87% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company's upcoming EPS is projected at $3.23, signifying a 73.66% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.78 billion, up 18.32% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $30.64 per share and a revenue of $45.34 billion, representing changes of +73.21% and +19.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for GE Vernova. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% higher. GE Vernova currently has a Zacks Rank of #2 (Buy).
In terms of valuation, GE Vernova is presently being traded at a Forward P/E ratio of 37.6. Its industry sports an average Forward P/E of 18.07, so one might conclude that GE Vernova is trading at a premium comparatively.
We can also see that GEV currently has a PEG ratio of 2.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Alternative Energy - Other was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
GE Vernova (GEV - Free Report) closed at $1,134.35 in the latest trading session, marking a -3.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the the energy business spun off from General Electric had gained 21.16% in the past month. In that same time, the Oils-Energy sector lost 4.76%, while the S&P 500 lost 1.21%.
The investment community will be closely monitoring the performance of GE Vernova in its forthcoming earnings report. The company is scheduled to release its earnings on July 22, 2026. The company is forecasted to report an EPS of $3.16, showcasing a 69.89% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $10.78 billion, indicating a 18.29% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $30.59 per share and a revenue of $45.34 billion, signifying shifts of +72.92% and +19.09%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for GE Vernova. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.07% higher. GE Vernova is currently a Zacks Rank #2 (Buy).
From a valuation perspective, GE Vernova is currently exchanging hands at a Forward P/E ratio of 38.41. This denotes a premium relative to the industry average Forward P/E of 18.22.
It's also important to note that GEV currently trades at a PEG ratio of 2.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Alternative Energy - Other industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
GE Vernova těží z boomu investic do AI datacenter; backlog vzrostl na 76 miliard USD a smlouvy o rezervaci kapacity na 56 GW. To podporuje budoucí tržby ze servisu i hotovostní tok.
The stock of GE Vernova (GEV 2.93%) is up almost 60% in 2026 as of this writing. The capital investment boom in artificial intelligence (AI) data centers has proved stronger than the market expected going into the year, and the benefits are immediately visible in the company's guidance and backlog growth. Still, can the good run continue in 2026?
The GE Vernova investment analysis Ultimately, the answer comes down to ongoing market conditions for investment in AI data centers (GE Vernova makes gas turbines that power them and electrification equipment essential to their operation), growth in its equipment backlog, and something called slot reservation agreements (SRAs). These events are key to the investment case for the stock and help differentiate the company from many other AI-related stocks.
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First, despite being known as an equipment company, GE Vernova generates the bulk of its profit from services. The company sells gas turbines (and wind turbines) that come with long-term service agreements attached, which generally run for 5 to 25 years and "generally include maintenance associated with major outage events," according to the company's Securities and Exchange Commission filings. So the company locks in long-term services revenue as equipment deliveries grow.
Moreover, it generates service revenue from its electrification segment, as grid solutions, power conversion, and software will need upgrades and replacements over time. The good news is that across all three segments (power, electrification, and wind), its services margin is much higher than its equipment margin.
2025
Sales
Cost
Gross Profit
Gross Profit Margin
Equipment
$20.93 million
$18.76 million
$2.17 million
10.4%
Services
$17.13 million
$11.77 million
$5.36 million
31.3%
Data source: GE Vernova presentations. Table by the author.
All together, when GE Vernova increases its equipment backlog, as it did in the first quarter by reporting a $76 billion backlog, compared to a $64 billion backlog at the end of 2025, then investors need to start penciling in increased long-term earnings and cash flow from servicing gas power turbines (particularly heavy-duty gas power turbines used for data centers), and wind turbines.
Slot reservation agreements SRAs are contracts under which customers pay up-front to secure future manufacturing slots for equipment. Their growth is a key marker of surging demand, and they increased to 56 gigawatts (GW) in the first quarter from 43 GW at the end of 2025. That increase implies more up-front cash flow for GE Vernova, and given that its billing agreements "are generally based on achieving specified milestones," it's likely to result in more near-term cash flow for the company as those milestones are hit.
Image source: Getty Images.
A stock worth buying? As long as GE Vernova's equipment orders and backlog keep growing, the stock is likely to do well as investors price in more near-term SRAs and long-term recurring, higher-margin services revenue -- something to watch in the coming earnings reports.
An exclusive look inside GE Vernova's largest gas turbine plant in Greenville, South Carolina, offers fresh evidence that the artificial intelligence boom is going strong.
Inside, engineers are working alongside factory workers to speed up production of this complex machine. The company hired 200 workers last year, and 300 more are expected to start working at this factory by the end of the year.
Fueling the growth is AI.
Hyperscalers — companies like Amazon, Google, Microsoft and Oracle — are lining up to buy the company's gas turbines. With AI data centers requiring a considerable amount of energy and bottlenecks in the grid emerging, these companies are increasingly relying on standalone energy sources, like gas turbines.
"Right now, when you need power at scale and you need firm power, the industrial gas turbine is one of the leading solutions for that," Pablo Koziner, chief commercial and operations officer at GE Vernova, told CNBC.
The AI opportunity is prompting leaders from OpenAI and other companies to gain a deeper understanding of industrial design and power generation.
Executives from nearly every major hyperscaler have walked the floor of the factory, according to a person familiar with the visits, who asked not to be named because the details are not public.
Read more CNBC tech newsOracle stock has worst week since 2001 dot-com bust as AI financing concerns escalateOpenAI hasn't held pre-IPO investor meetings or set timeline yet, sources sayOpenAI and Anthropic face new AI reality as users shift from 'tokenmaxxing' to efficiencyOpenAI limits new AI models to 'trusted partners' at request of U.S. governmentThe turbines are massive, at 31 feet tall and weighing 280 tons. One turbine can power roughly half a million homes.
"When we think of what the world needs for electrification and what we need to power this AI surge that we're living, a lot of that stuff comes right out of this factory," said Koziner.
Microsoft just bought seven of them to power its data center in Texas. At 2.7 gigawatts, it's enough electricity to power about 3 million homes.
GE Vernova turbines are already online at Elon Musk's xAI Colossus 1 campus in Tennessee, and nearly a gigawatt more are being deployed at OpenAI's Stargate project in Texas, according to Cleanview, an organization that tracks data center development.
Demand for these machines far outstrips supply, with the order book full through 2029. Koziner added that the company is booking more into 2030 and even 2031.
"Today, about 20% of our gas power order book is going to a data center, artificial intelligence-type of application," he said.
One turbine can cost more than $250 million, according to industry estimates. The price has soared, up 300% in the last 3 years, according to analysts at Melius. The steep rise in prices underscores why AI capital expenditure budgets continue to move up, a leading concern among tech investors.
That spending surge has been a boon for GE Vernova, with its stock gaining nearly 60% in the past six months.
Public pushback on data center development and growing environmental concerns could challenge the AI buildout.
GE Vernova said it's working on making its turbines more environmentally friendly.
"We also put a lot of time and effort into the sustainability of these machines," Koziner said. "And the turbine that you're looking at here is two times more efficient than a turbine that we would have produced 20 years ago."
Ceny plynových turbín GE Vernova za tři roky vzrostly asi o 300 % a kapacity jsou vyprodané na roky dopředu. Firma zároveň zvýšila celoroční výhled tržeb na 44,5 až 45,5 miliardy USD.
Power has become the bottleneck in the AI buildout. CNBC’s Seema Mody walked the floor of GE Vernova‘s (NYSE:GEV | GEV Price Prediction) 400-acre South Carolina plant on June 24, 2026, and her reporting captured the single most important pricing signal in the energy supercycle: gas turbine pricing has risen roughly 300% over the last three years, with the order book sold out for years.
That single data point reframes the GE Vernova thesis. Here is what investors need to take away.
Inside the World’s Largest Gas Turbine Plant The machine at the center of Mody’s segment is GE Vernova’s most powerful gas turbine. It is roughly 30 feet long, weighs about 280 tons, uses controlled explosions to spin its rotors, and generates enough electricity to power about half a million homes. Hyperscalers are buying them in fleets.
The marquee example: Microsoft recently bought seven of these turbines for its Texas data center project, totaling roughly 2.7 gigawatts of capacity. That aligns with the Microsoft and Chevron Project Kilby announcement, a 2.67 gigawatt facility in West Texas tied to a 20-year power purchase agreement using GE Vernova turbines, with first power expected in 2028.
The demand picture goes well beyond Microsoft. According to Mody’s reporting, executives from every hyperscaler, including OpenAI’s head of power, have walked the floor to vet the plant’s output. The order book is full through 2029, with orders extending to 2031. A GE executive in the segment acknowledged the supply-demand imbalance and pointed to higher manufacturing throughput and lean discipline as the response.
The Numbers Behind the Surge The pricing power shows up in the financials. In Q1 2026, GE Vernova reported revenue of $9.30 billion, up 15.8% year over year, with orders of $18.30 billion, up 71% organically. The Electrification segment alone booked $2.4 billion in data center equipment orders in the quarter, more than all of 2025. Gas Power combined backlog and slot reservations moved from 83 GW to 100 GW, with management targeting at least 110 GW by year-end 2026.
CEO Scott Strazik framed it directly in the Q1 2026 release: “Demand is accelerating for our Power and Electrification solutions from a diverse set of customers, with our backlog growing by more than $13 billion quarter-over-quarter.” Management raised 2026 guidance to $44.5 to $45.5 billion in revenue, 12% to 14% adjusted EBITDA margin, and $6.5 to $7.5 billion in free cash flow.
Investor Lens: Is GEV Still a Top Stock to Buy? The stock has already priced in much of this. Shares trade at $1,066.01 as of June 24, 2026, with a market cap near $303 billion. GEV is up 58.65% year to date and 107.6% over one year. Valuation sits at 33x trailing earnings and 40x forward (as a note, trailing earnings were inflated by one-time sale benefits, so forward earnings are a better measure for GEV), with analyst sentiment skewed positive: 6 Strong Buy, 23 Buy, 7 Hold, 0 Sell ratings, and a $1,211.72 average target. Bernstein recently initiated with an Outperform rating and a $1,206 price target.
Bull case: a multi-year sold-out backlog, demonstrated pricing power, hyperscaler validation across every major buyer, and 2028 targets of $56 billion in revenue at a 20% EBITDA margin. Natural gas remains the cheapest, most deployable bridge fuel for AI campuses that cannot wait on grid interconnect queues.
Risk case: the stock’s five-year return of 691.87% leaves little room for execution slips. The Wind segment is still guided to roughly $400 million in EBITDA losses in 2026. Demand visibility past 2031 thins out as small modular reactors and other nuclear options come online. Recent retail sentiment has cooled from bullish on May 26, 2026 to bearish by June 9, 2026, and shares fell 7.32% on June 23 on broader AI-infrastructure risk-off flows.
Power generation has become the choke point of the AI arms race, and GE Vernova sits at the narrowest part of that funnel through the end of the decade. The question for investors is whether a sold-out 2029 justifies paying for the uncertain 2032.
