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Earnings miss overshadows strong sales growth
GE Vernova Inc. (NYSE:GEV) shares fell 2.7% in premarket trading after the company reported second-quarter 2026 results that fell short of earnings expectations, despite delivering stronger-than-expected revenue and raising its full-year financial guidance.
Adjusted earnings per share came in at $2.47, missing Wall Street’s consensus estimate of $3.04.
Revenue rose 22% year over year to $11.1 billion, exceeding analysts’ expectations of $10.73 billion. The increase was driven by solid organic growth across the company’s Power and Electrification businesses, which expanded 12% from the prior year.
Backlog and demand continue to strengthen
Chief Executive Officer Scott Strazik pointed to continued demand for the company’s products and services as a key driver of performance.
“With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova’s momentum is building.”
Although earnings disappointed investors, management increased its outlook for the full year.
The company now expects 2026 revenue to range between $45.5 billion and $46.5 billion, up from previous guidance of $44.5 billion to $45.5 billion. The midpoint of the new forecast is slightly above the current analyst consensus of $45.45 billion.
GE Vernova also significantly raised its free cash flow forecast to between $11.5 billion and $12.5 billion, compared with its previous outlook of $6.5 billion to $7.5 billion. The company maintained its adjusted EBITDA margin guidance of 12% to 14%.
Orders surge as power demand accelerates
Total orders increased 88% organically to $24.2 billion during the quarter, supported by strong demand across both the Power and Electrification divisions.
The Power segment secured contracts for 20 gigawatts of new gas generation equipment, lifting its total backlog to 116 gigawatts. Management now expects that figure to reach at least 125 gigawatts before the end of 2026.
Electrification orders climbed 66% organically to $6.3 billion. Orders related to data centres have already exceeded $5 billion so far this year, more than double the level recorded during 2025.
Free cash flow reached $5.1 billion during the quarter, surpassing the company’s total free cash flow generated throughout 2025. The improvement reflected stronger adjusted EBITDA and more efficient working capital management.
Wind business remains under pressure
The Wind division continued to weigh on overall performance.
Revenue from the segment declined 10% year over year, while EBITDA losses widened to $275 million as lower onshore wind equipment deliveries and higher offshore wind project costs continued to pressure profitability.
GE Vernova stock price
