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Shares of GE Vernova declined in premarket trading after the energy company missed analysts’ expectations for earnings per share.
The Cambridge, Mass.-headquartered company reported EPS of $2.47 in its second quarter, falling short of the Wall Street consensus for $3.04.
GE Vernova’s stock fell almost 5% in premarket trading, with shares up 65% overall since the start of the year.
The company, which was spun off from General Electric two years ago, posted earnings before interest, taxes, depreciation and amortization of $1.25 billion, below expectations for $1.28 billion, according to data collected by the London Stock Exchange Group.
Despite the misses, the maker of energy equipment upgraded its outlook for revenue for the year by $1 billion, to between $45.5 billion and $46.5 billion, with free cash flow in a range of $11.5 billion to $12.5 billion, up from a previous forecast of $6.5 billion to $7.5 billion.
“We delivered strong financial results in the second quarter as global demand for our products and solutions continues to grow,” CEO Scott Strazik said in a statement. “With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova’s momentum is building, and we are raising our 2026 financial guidance.”
Analysts at Oppenheimer led by Colin Rusch said they “continue to be encouraged by the company’s capital efficiency as it executes against growth initiatives while buying back stock.” They expect shares to rebound after the initial sell-off, which they see as headline-driven.
GE Vernova reported that its revenue increased 22% year over year to $11.1 billion in the three months that ended June 30, higher than analysts’ estimates for $10.73 billion.
Strazik also announced that GE Vernova’s power segment now expects to secure contracts for at least 125 gigawatts of gas equipment by the end of the year, compared with the 110 gigawatts expected at the start of the year. Analysts at Goldman Sachs led by Joe Ritchie wrote in a note on Wednesday that a negative share reaction typically follows industry participants raising capacity.
