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GE Vernova (GEV - Free Report) ended the recent trading session at $951.04, demonstrating a -2.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.

Heading into today, shares of the the energy business spun off from General Electric had lost 4.01% over the past month, lagging the Oils-Energy sector's gain of 8.39% and the S&P 500's loss of 0.97%.

Investors will be eagerly watching for the performance of GE Vernova in its upcoming earnings disclosure. On that day, GE Vernova is projected to report earnings of $4.08 per share, which would represent year-over-year growth of 148.78%. At the same time, our most recent consensus estimate is projecting a revenue of $12.07 billion, reflecting a 21.11% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $30.49 per share and revenue of $46.29 billion, indicating changes of +72.36% and +21.61%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for GE Vernova. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.34% lower. GE Vernova currently has a Zacks Rank of #3 (Hold).

Looking at valuation, GE Vernova is presently trading at a Forward P/E ratio of 31.85. This expresses a premium compared to the average Forward P/E of 18.12 of its industry.

One should further note that GEV currently holds a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Alternative Energy - Other was holding an average PEG ratio of 2.32 at yesterday's closing price.

The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% 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.

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

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

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

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

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

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

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

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

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

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

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

- Karl Thedéen, President and Chief Executive Officer, Studsvik

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

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

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

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

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

About Studsvik

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

About Samsung C&T

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

About GE Vernova Hitachi

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

About DS Investment Partners

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

About GE Vernova

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

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

Disclosure

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

Forward-Looking Statements

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

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

For more information, please contact

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

Media enquiries: [email protected]

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

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

The following files are available for download:

https://mb.cision.com/Public/4019/4391372/8a778a2d5b07e45b.pdf

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

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

JasonCooper SeChulOh KarlThedeen SeungSuKang PatrickLeahy

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

GVH BWRX-300

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

SMR Campus 9units Illustration

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

SMR Campus Illustration

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

Karl Thedeen CEO Studsvik

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

Christian Sjölander Head Of New Build Projects Studsvik

SOURCE Studsvik AB

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.

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.

When the former General Electric conglomerate completed the spin-off of its energy business as GE Vernova (GEV -0.78%) in April 2024, its wind component accounted for nearly one-third of revenue. That business has continued to decline since then, but GE Vernova shareholders probably don't mind too much.

Wind orders decreased another 40% year over year in Q2, and the stock has dropped about 15% since that report on July 22. Some of that selling may have been profit-taking, as the stock is still up 40% this year. But I wouldn't sell GE Vernova stock based on that report, or even after that big gain. In fact, the company is very well positioned with its diversified business.

Image source: The Motley Fool.

Investors can look at the wind business as a bonus now. That's because the company's power and electrification segments are booming. Despite the sharp drop in wind business orders, GE Vernova reported 88% organic order growth overall in the second quarter.

That's why the stock price drop presents an opportunity. GE Vernova is poised to generate significant value. Management took on a manageable amount of debt earlier this year to acquire the remaining 50% stake of ProlecGE, formerly a joint venture with a Mexican industrial group. That company is a major producer of power transformers and electrical equipment essential for the generation, transmission, and distribution of electric power.

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Demand is clearly accelerating and driving margin expansion at GE Vernova. While some investors took profits recently, I would instead take a long-term approach and remain a buyer of GE Vernova stock.

Howard Smith 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.

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.

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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.

Most investors understand that technology giants like Alphabet (GOOG +1.53%) (GOOGL +1.74%), Microsoft (MSFT +1.68%), and Facebook parent Meta Platforms (META +1.21%) are spending a fortune on artificial intelligence infrastructure. What they may not fully appreciate is just how much money these companies have earmarked for AI infrastructure investments.

That's the big takeaway from recent reporting from The Wall Street Journal. Digging deeper into all of the industry titans' disclosure documents, reporters Peter Rudegeair and Peter Santilli found that artificial intelligence powerhouses like Amazon (AMZN +3.97%) and the aforementioned Alphabet collectively have an additional $3 trillion in AI-related liabilities -- like data center leases and technology purchase commitments -- that aren't reflected on their balance sheets.

For perspective on that number, the biggest names in the business are jointly budgeting on the order of $750 billion worth of infrastructure this year alone, and that's been viewed by investors as a jaw-dropping figure.

Sheer shock rattled shares of the companies implicated by the WSJ's reporting -- but not just those companies' stocks. Companies like GE Vernova (GEV -4.39%) and Vertiv (VRT -4.53%) that benefit directly from the massive AI build-out saw their stocks stumble in response to the news as well, and understandably so.

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However, maybe shares of these ancillary outfits didn't actually deserve their knee-jerk punishment.

Investors know companies can't spend money they don't have Off-balance-sheet obligations and liabilities are neither illegal nor immoral. These planned commitments shouldn't yet be on these companies' balance sheets, in fact, according to GAAP (generally accepted accounting principles). For the sake of complete transparency, these companies disclosed these additional future obligations in their most recent quarterly Securities and Exchange Commission (SEC) filings anyway.

What exactly are these liabilities that will eventually be moved to actual balance sheets in the future?

Some of them are commitments to future purchases of technology like AI-capable processing chips, data center networking solutions, or even the electricity that power-hungry data centers require.

Image source: Getty Images.

Another chunk of this $3 trillion worth of off-balance-sheet liabilities represents future leases of these data centers themselves. Many of these companies would rather rent access to them and walk away from a lease if need be -- even with a penalty for doing so -- than commit to the cost of outright ownership of a massive technology facility they may not want to actually own in the long run.

Some of the facilities that could potentially be leased in the future have yet to even be built.

That's where and why Vertiv and GE Vernova enter the picture. The former makes cooling solutions and power-management equipment for data centers. The latter makes onsite electricity-production solutions, including, most notably, natural gas power turbines. GE Vernova's orders soared 88% last quarter, largely due to AI data center-driven demand for power-production equipment. Vertiv's second-quarter sales grew 24% year over year, largely for the same reason. Both companies and their investors are looking for more of the same for the foreseeable future.

However, if that $3 trillion worth of off-balance-sheet planned spending never makes it to an actual balance sheet because it's canceled before being deployed, demand for Vertiv's and GE Vernova's wares could be upended in an instant.

Those are the dots investors are connecting, and to be fair, it's not an unreasonable concern.

For a handful of reasons, however, The Wall Street Journal's suggested number doesn't necessarily expose a new, potentially bearish problem for AI infrastructure players like GE Vernova and Vertiv.

One of these reasons is simply that -- while $3 trillion worth off-balance-sheet commitments is an admittedly huge figure -- it's not actually a shocking one.

Most investors understand that Big Tech's collective capital expenditure budget of $750 billion for 2026 is only the beginning of a multiyear spending spree of comparable annual amounts. And prior to the WSJ's reporting, a similar assessment published by Nikkei in late July put the artificial intelligence industry's off-balance-sheet liabilities in the same ballpark, at $1.65 trillion. Whether they readily realize it or not, The Wall Street Journal's calculation is within the scope of the amount that most investors have tacitly understood for some time now was going to be committed to investments in AI infrastructure. We now just have another specific working number, which initially jarred the market, but arguably didn't actually surprise it.

Another reason Vertiv and GE Vernova shares were arguably unduly punished by the WSJ's report is the argument that the earmarked $3 trillion is still very likely to be spent exactly how the artificial intelligence industry's top dogs say they're planning on spending it, for a couple of reasons.

One of them AI's newly proven value.

Despite its rocky start and revenue growth that's yet to keep up with its cost growth, there's a proverbial light at the end of the tunnel for the customers that "big tech" has been building AI platforms to serve. In its recently published "The State of AI in 2026" report, consulting firm McKinsey explains that enterprises' investments in artificial intelligence solutions are finally "on the road to ROI [return on investment]."

That doesn't mean all of it is paying off well enough yet. However, it does highlight that the latest iterations of AI tech and institutions' understanding of how to best use it are finally what was hoped for in artificial intelligence's infancy. Now that it's (reasonably) well-proven to add value, look for demand for AI solutions to pull that $3 trillion in off-balance-sheet commitments onto balance sheets with actual investments in actual artificial intelligence infrastructure.

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The other reason this earmarked money is going to be spent regardless? While no agreement is entirely unbreakable, many of these off-balance-sheet commitments are indeed contracts that must be honored, or be resolved by sizable penalties or potential litigation, which can still result in high costs. Affordability or reason aren't really factors in the matter.

Perhaps more important to interested investors, although it's a dynamic that will take years to fully play out, their recent setbacks are all the more reason to step into GEV and VRT. Both are currently trading below analysts' current consensus price targets, by the way, and both are currently considered strong buys by the analyst community as well.

GE Vernova Inc. earns a Buy rating due to its dual exposure to Power and Electrification, capitalizing on surging electricity and data center demand. GEV's integrated model, robust backlog, and customer-funded capacity expansion drive margin improvement and position it for strong earnings growth. Electrification segment, bolstered by full Prolec GE ownership, is poised for mid-teens growth and premium margins, with data center orders already doubling last year's total.

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.

Time to upgrade GE Vernova to Buy, as the thesis is supported by robust backlog growth and strong demand from AI-driven data center expansion. GEV's $176B backlog provides multi-year revenue visibility, with execution risks primarily still the main bugbear. Forward earnings multiple at 46x remains a premium, justified if GEV successfully converts backlog and sustains margin expansion toward 25% by decade's end.

The 2026-so-far story in industrial machinery has been about who owns the electrification stack.

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.

Key Takeaways GE Vernova posted 22% revenue growth and 88% organic order growth, led by Power and Electrification.GEV's backlog rose $13 billion sequentially to about $176 billion, boosting visibility into future revenues.GE Vernova raised 2026 revenue guidance to $45.5-$46.5 billion and FCF guidance to $11.5-$12.5 billion. GE Vernova Inc.’s (GEV - Free Report) second-quarter 2026 results suggest that the company is entering a stronger earnings growth phase. The company delivered significant growth in orders and revenues, expanded margins and generated substantial free cash flow during the quarter. With demand continuing to build across its Power and Electrification businesses, GE Vernova is increasingly benefiting from a combination of higher volumes, favorable pricing and improved execution.

The company’s second-quarter performance was particularly strong on the top line. Revenues reached $11.1 billion, representing a 22% year-over-year increase and 12% organic growth. Orders were even stronger, reaching $24.2 billion, up 88% organically, driven primarily by Power and Electrification. GE Vernova’s backlog also increased $13 billion sequentially to approximately $176 billion, providing substantial visibility into future revenues.

Profitability is another important part of the earnings story. Adjusted EBITDA increased to $1.2 billion, while adjusted EBITDA margin reached 11.3%, marking an improvement of 340 basis points organically. The improvement reflects stronger volumes, favorable pricing and disciplined execution. As more of GE Vernova’s growing backlog converts into revenues, continued operating leverage could provide additional support to earnings and margins.

GE Vernova’s raised 2026 guidance further highlights the strength of its current momentum. The company now expects revenues of $45.5-$46.5 billion compared with its previous outlook of $44.5-$45.5 billion. Free cash flow guidance was also raised to $11.5-$12.5 billion from $6.5-$7.5 billion, while adjusted EBITDA margin guidance remained unchanged at 12-14%.

Companies Benefiting From the Same TrendRising electricity demand, data-center expansion and tight power markets are creating a favorable earnings environment for utilities with growing generation capacity and strong power portfolios.

Vistra (VST - Free Report) is benefiting from higher power and capacity prices, an expanding generation portfolio and growing demand from large electricity users.

Constellation Energy (CEG - Free Report) is positioned to benefit from rising demand for reliable, carbon-free power, particularly from data centers and other large customers.

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 38.82X compared with the industry average of 24.81X.

Image Source: Zacks Investment Research

GEV Stock’s Price PerformanceIn the past six months, the company’s shares have risen 30.4% against the industry’s 5.5% decline.

Image Source: Zacks Investment Research

GEV’s Zacks Rank

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.

Get GE Vernova alerts:

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 (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.

© Courtesy of GE via Facebook

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.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

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

Over the past month, shares of this the energy business spun off from General Electric have returned -19.7%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Alternative Energy - Other industry, which GE Vernova falls in, has lost 12.2%. The key question now is: What could be the stock's future direction?

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

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

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, GE Vernova is expected to post earnings of $4.00 per share, indicating a change of +143.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.

The consensus earnings estimate of $30.74 for the current fiscal year indicates a year-over-year change of +73.8%. This estimate has changed +1.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $24.25 indicates a change of -21.1% from what GE Vernova is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

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

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

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of GE Vernova, the consensus sales estimate of $11.95 billion for the current quarter points to a year-over-year change of +19.9%. The $46.27 billion and $52.49 billion estimates for the current and next fiscal years indicate changes of +21.5% and +13.4%, respectively.

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

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

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

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

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

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

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

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

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.

Today's Change

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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 Inc (NYSE:GEV) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

Understanding the Power Inflow Signal

Order flow analytics examine real-time buying and selling behavior by analyzing volume, timing, and order size across both retail and institutional participants. These insights provide a deeper understanding of price action and market sentiment, allowing traders and institutions to make more informed decisions.

GEV Performance

At the time of the Power Inflow alert, GEV was trading at $1,001.20. Following the signal:

• Intraday High: $1,041.79 (+4.05%)

This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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23.7.2026 22:08

Index Dow Jones -0,97 % na 51711,65 b. S&P 500 -1,21 % na 7408,3 b. Nasdaq Composite -2,15 % na 25137,69 b.

Obchodní den končí v USA v červeném. Široký index S&P 500 odepisuje 1,2 % pod tlakem poklesů v sektoru komunikačních služeb a zbytné spotřeby. V komunikační službách se negativní sentiment propsal do akcií Alphabet, které po kvartálních výsledcích odepisují 6,89 %. Rudá barva se prolila i do telekomunikačních služeb, kde reportoval T-Mobile US (- 10,75 %). Ten se chce v následujícím kvartálu zaměřit na vyšší výnosy z každého zákazníka a méně řešit přírůstky nových klientů. Vedení očekává slabší přírůstky a společnost se snaží převádět zákazníky na dražší tarify, což by mohlo vést k dočasnému úbytku zákazníků. Za minulý kvartál firma meziročně zvýšila čistý zisk o 5 % a díky silnému cash flow byl zvýšen celoroční výhled na USD 18,4 -18,8 mld. Zveřejněný zisk na akcii USD 2,99 překonal odhady trhu.

Nedařilo se ani aerolinkám. American Airlines Group (- 8,35 %) klesá kvůli slabšímu výhledu. Společnosti v uplynulém kvartálu významně rostla cena leteckého paliva. I když se zvýšené náklady povedlo částečně přesunout na zákazníka, tak trh negativně reaguje na zvýšený tlak na marže do budoucna. Management očekává v dalším kvartálu ztrátu až do výše USD 0,1 na akcii. V reportu za minulý kvartál dosáhl zisk na akcii na USD 0,15.

Kladně končí sektor průmyslu. GE Vernova posílila o 4,69 % a o 10,54 % posílil Lockheed Martin.

Z indexu Dow Jones posílila třetina titulů na čele s Honeywell Technologies (5,7 %).

Komoditní trhy se soustředí na černé zlato. Futures na ropu Brent se nyní obchodují těsně pod hranicí USD 100 a WTI při růstu o 5,3 % překonává cenovku USD 91,5.

Index S&P 500 -1,21 % na 7408,3 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Průmysl +1,8 % Komunikační služby -5,2 % Zdravotní péče +1,3 % Zbytná spotřeba -5,1 % Energie +0,6 % Nezbytná spotřeba -1,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lockheed Martin Corp (LMT) +11 % Tesla (TSLA) -15 % Allegion (ALLE) +10 % T-Mobile US (TMUS) -11 % United Rentals (URI) +10 % Rollins (ROL) -9,3 % Thermo Fisher Scientific (TMO) +8,7 % Dover Corp (DOV) -7,8 % Quest Diagnostics (DGX) +8,6 % Alphabet (GOOGL) -7,1 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

Key Takeaways GE Vernova grew Q2 revenues 22%, expanded margins and raised 2026 revenue and free cash flow guidance. GEV posted $24.2B in orders and added $13B to backlog, supported by Power and Electrification demand. GEV said data center orders topped $5B year to date, more than double the 2025 level. GE Vernova (GEV - Free Report) reported mixed results in the second quarter of 2026, missing on the bottom line but surpassing the Zacks Consensus Estimate for revenues. Both top and bottom lines expanded year over year, driven by robust equipment growth in Power and Electrification units. Significant orders and backlog growth, margin expansion and cash generation were witnessed in the June quarter. In the second quarter, GEV witnessed backlog growth of $13 billion sequentially from equipment and services.

During the June quarter, orders increased 88% organically to $24.2 billion. Revenues of $11.1 billion increased 22%, led by equipment growth at Electrification and Power, along with higher services. Margins expanded significantly owing to higher volume, price and productivity.

In the Power segment, orders surged 134% organically and revenues of $5.5 billion increased 14%, led by Gas Power equipment. In Electrification, revenues surged 66% organically to $6.3 billion, driving a book-to-bill ratio of approximately 1.7, with continued strong demand for grid equipment. Revenues of $3.6 billion increased significantly, driven by Power Transmission and Grid Systems Integration.

The company expects the Power and Electrification units to continue performing well and has raised its 2026 guidance. GE Vernova now expects revenues in the band of $45.5-$46.5 billion, up from $44.5-$45.5 billion. Free cash flow is now expected in the band of $11.5-$12.5 billion, up from $6.5-$7.5 billion. In the Power segment, 18-20% organic revenue growth is now anticipated, up from 16-18%. 

Revenues in the Electrification unit are now expected in the band of $14.5-$15 billion, inclusive of approximately $3.1 billion from Prolec GE, up from $14-$14.5 billion, inclusive of approximately $3 billion from Prolec GE. Driven by demand growth in Electrification, data center orders have reached more than $5 billion year to date, more than double the 2025 number.

GE Vernova's Power and Electrification equipment businesses are expected to be major growth drivers in the coming years, supported by rising global electricity demand, grid modernization and the accelerating adoption of artificial intelligence. Companies like GEV are investing heavily in new gas-fired generation to ensure reliable baseload power while integrating renewable energy, creating sustained demand for its advanced gas turbines and related services.

Moreover, rapid data center expansion and increasing electrification of transportation and industry are placing unprecedented pressure on aging power grids, driving robust demand for the company's Electrification segment. GE Vernova is well positioned to capitalize on this trend through its portfolio of grid equipment, including high-voltage switchgear, transformers, substations, power conversion systems and grid automation solutions.

The combination of a multi-year equipment backlog, strong service opportunities from its expanding installed base and favorable long-term investment trends in power infrastructure should support sustained revenue growth, margin expansion and earnings momentum over the next several years.

Taking a Look at the Backlog Growth of GEV’s PeersEaton’s (ETN - Free Report) backlog continues to expand rapidly, supported by strong demand for electrical equipment used in data centers, utilities, commercial facilities and industrial applications. At the end of the first quarter of 2026, the company’s total Electrical-sector backlog was 48% higher than a year earlier. Backlog in Electrical Americas increased 44%, while Electrical Global recorded a sharper 73% rise.

The backlog expansion should provide Eaton with substantial revenue visibility as investments in electrification, grid modernization and artificial-intelligence infrastructure accelerate. Data-center construction is creating demand for switchgear, power-distribution systems, backup-power equipment and thermal-management solutions, while utilities are upgrading networks to accommodate higher electricity consumption and renewable generation.

Eaton is investing in additional production capacity to address this demand, which should support sales growth and manufacturing utilization. However, the eventual benefit to earnings will depend on the company’s ability to expand capacity, manage supply constraints and deliver projects without eroding margins.

Vertiv’s (VRT - Free Report) backlog has risen sharply as hyperscale and colocation customers increase spending on power and cooling infrastructure for artificial-intelligence data centers. At the end of 2025, the company’s backlog reached $15 billion, representing an increase of 109% from the prior-year period.

Vertiv’s record backlog gives it strong visibility into future sales as data-center operators deploy increasingly power-intensive computing systems. Higher rack densities require advanced electrical distribution, uninterruptible power supplies, liquid cooling and prefabricated infrastructure, all of which play directly to Vertiv’s product portfolio. Vertiv is consequently expanding manufacturing capacity and increasing technology investments to accelerate deliveries and capture additional market share. While the backlog provides a solid foundation for growth, successful conversion will depend on execution, component availability and the timing of large data-center projects, which can cause quarterly order and revenue patterns to fluctuate.

GEV's 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 ComparisonImage Source: Zacks Investment Research

GE Vernova trades at a forward 12-month price-to-sales (P/S) ratio of 5.4, above the industry’s 5.21.

GEV's Shares Look a Tad PriceyImage 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 (GEV) fell 5.48% premarket after reporting second-quarter diluted earnings of $2.47 a share, well short of the $3.18 Wall Street analysts expected, e

Ed Butowsky and Tom Essaye discuss their takeaways from GE Vernova (GEV) earnings. Tom explains why the company is under pressure following earnings, noting that there was little room for error following a parabolic run in shares.