GE Vernova Q2 revenue beats estimates, lifts 2026 outlook

Overview

• U.S. power equipment maker's Q2 revenue grew 22% yr/yr, beating analyst expectations

• Company raised 2026 revenue and free cash flow guidance on strong demand and backlog growth

• Q2 orders surged 88% organically, led by Power and Electrification

Outlook

• GE Vernova raises 2026 revenue guidance to $45.5-$46.5 bln, up from $44.5-$45.5 bln

• Company increases 2026 free cash flow guidance to $11.5-$12.5 bln from $6.5-$7.5 bln

• GE Vernova maintains 2026 adjusted EBITDA margin guidance at 12%-14%

Result Drivers

• ORDER GROWTH - Q2 orders rose 88% organically, led by Power and Electrification segments

• BACKLOG EXPANSION - Backlog grew $13.0B sequentially, with gas power equipment backlog and slot reservations increasing from 100 to 116 GW

• ELECTRIFICATION DEMAND - Data center orders surpassed $5 bln year-to-date, more than double 2025 total, supporting Electrification growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 31 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for GE Vernova Inc is $1,235.00, about 14.5% above its July 21 closing price of $1,078.81

• The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 53 three months ago

Reuters Recommended Reads

• July 22 - GE Vernova raises annual revenue forecast as strong power demand boosts orders

• July 21 - Grid operator in US central states warns of potential rolling blackouts

• July 21 - Texas grid operator forecasts record-high electricity demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)