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GE Vernova earnings for the second quarter fell short early Wednesday while revenue topped. In morning trade, GE Vernova stock plunged, falling below key support.
GE VernovaGEV confirmed in June that its massive, heavy-duty gas turbines are basically sold out through 2029. Big Tech companies aggressively purchased the gas turbines to power their artificial-intelligence (AI) data-center campuses by themselves, with regionals grids unable to meet massive electricity demand.
Early Wednesday, the AI energy player also slightly raised full-year 2026 guidance, but left EBITDA margin guidance unchanged. Vernova reported wider losses in the wind energy segment as well and still sees the troubled business losing $400 million in 2026. A swelling backlog signaled massive demand for energy infrastructure, but possible execution risk.
GE Vernova Earnings Miss; Sales Growth Accelerates
GE Vernova earned $2.47 a share in Q2, up 33% vs. a year earlier but far below views for $3.18. Revenue grew 22% to $11.1 billion, driven by demand for both gas power equipment and grid equipment. The results marked the third straight quarter of accelerating sales growth and modestly beat FactSet consensus of $10.79 billion. Margins also expanded.
Data-centers orders in the electrification segment exceeded $5 billion in the first half of 2026, more than double the 2025 total, an earnings release showed.
Orders were $24.2 billion, up 88% vs. a year earlier and up from $18.3 billion in Q1.
Backlog surged, reaching $1786 billion and growing by $13 billion from Q1's $163 billion. Analysts had expected backlog growth to $167 billion.
The gas turbine backlog now is on track to reach $125 billion by the end of 2026, up from $110 billion.
Right now, backlog conversion (into recognized revenue) matters more to investors than new orders and backlog growth. Wall Street's main concern has shifted significantly from demand to execution.
For full-year 2026, Vernova now expects sales of $45.5 billion-$45.6 billion and EBITDA of $6 billion. It had seen sales of $45 billion and EBITDA of $5.9 billion. The company kept margin guidance steady across the gas power and electrification segments.
GEV Stock Plunges
Shares of GE Vernova sank more than 6% in Wednesday stock market trading, back below their 50-day moving average. On Tuesday, shares gave up solid gains to end fractionally lower, at 1,079.03.
An 88 RS Rating, out of a best-possible 99, points to GEV stock's outperformance over the past year. The huge AI winner soared 93% over this period through Tuesday.
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More Room For Huge AI Winner To Run?
GE Vernova's rivals in the gas-turbine market include Siemens EnergySMERY. Challengers in the transformer market include EatonETN. Besides AI data centers, their products enjoy higher demand from bitcoin mining and grid modernization.
Ahead of Vernova earnings, Deutsche Bank analysts on Friday hiked their price target to $1,309, among the highest on Wall Street. The firm reportedly cited multiyear pricing power in a supply-constrained market, as well as massive scaling of free cash flow.
On Monday, Guggenheim analysts maintained a $1,300 target on GEV stock. They highlighted the rotation out of software tech stocks and into the AI energy landscape.
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