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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 below a key support level.
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 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 Estimates
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 $176 billion and growing by $13 billion from Q1's $163 billion. Analysts had expected backlog growth to $167 billion.
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The company said its gas turbine backlog it is on track to reach $125 billion by the end of 2026, up from a previous forecast for $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 said Wednesday that it 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 maintained margin guidance across the gas power and electrification segments.
GEV Stock Plunges Below Key Level
Shares of GE Vernova gapped down 8.5% at 987.43 in Wednesday stock market trading. GEV stock slid below the 50-day moving average. On Tuesday, shares gave up solid gains to end fractionally lower. They are down more than 6% for the week so far.
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.
Year to date, GEV stock remains 51% higher despite Wednesday's slump on earnings.
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