GE Vernova Inc. (NYSE:GEV) reported its first-quarter 2026 results on Wednesday, with shares trading higher following the release, after beating analyst expectations on both earnings and revenue.
Earnings Beat, Margin Expansion, and Cash Flow Strength
Adjusted EPS was $2.06, topping the $1.88 estimate, while revenue of $9.339 billion exceeded the $9.173 billion consensus. GAAP diluted EPS was $17.44.
Revenue rose 16% year over year, with organic growth of 7%, while net income reached $4.7 billion, including $4.5 billion in pre-tax M&A gains primarily from Prolec GE.
Adjusted EBITDA nearly doubled to $0.9 billion, with margin expanding to 9.6%, driven by price, volume, and productivity.
Orders surged 71% organically to $18.3 billion, with backlog increasing by $13.0 billion sequentially to $163 billion.
Cash from operating activities totaled $5.2 billion, and free cash flow reached $4.8 billion, more than quadrupling year over year. The company ended the quarter with $10.2 billion in cash and returned $1.4 billion to shareholders.
Backlog Surge Signals Strong Demand Outlook
CEO Scott Strazik said, “We had a solid start to 2026 as we continue to serve the growing, long-cycle electric power market. Demand is accelerating for our Power and Electrification solutions from a diverse set of customers, with our backlog growing by more than $13 billion quarter-over-quarter.”
He added the company now expects to reach at least 110 GW of combined gas turbine backlog and slot reservation agreements by year-end 2026, up from 100 GW currently.
Power Segment Fueled by Gas Equipment and Services
The Power segment generated $5.0 billion in revenue, up 12%, with orders rising 59% organically to $10.0 billion. Segment EBITDA margin expanded 470 basis points to 16.3%.
The segment signed 21 GW of new gas equipment contracts, converted 6 GW of reservations to orders, and increased backlog to 44 GW.
Gas Power backlog rose from 83 GW to 100 GW and may reach at least 110 GW by year-end 2026.
Electrification Surges on Grid and Data Center Demand
Electrification revenue climbed 61% to $3.0 billion, with orders up 86% organically to $7.1 billion and a book-to-bill ratio of about 2.5. Segment EBITDA margin improved 670 basis points to 17.8%. T
The segment booked $2.4 billion in equipment orders tied to data centers. It increased the backlog to $38.6 billion, including $5 billion from Prolec GE.
Wind Segment Pressured by Tariffs and Lower Volumes
Wind revenue declined 23% to $1.4 billion, while segment EBITDA loss widened to $0.4 billion.
Lower onshore equipment volumes, tariffs, and higher offshore contract losses impacted results following soft orders in early 2025.
Guidance Raised on Strong Outlook
CFO Ken Parks said, “Given our strong results and continued business momentum, we are increasing our guidance for 2026 revenue, adjusted EBITDA margin, and free cash flow.”
GE Vernova raised its full-year 2026 revenue outlook to $44.5 billion to $45.5 billion from $44.0 billion to $45.0 billion, versus a $44.474 billion estimate.
The new forecast includes an adjusted EBITDA margin of 12%–14%, and free cash flow of $6.5–$7.5 billion.
Power is projected to deliver 16%–18% organic revenue growth and 17%–19% EBITDA margin.
Electrification revenue is expected to be $14.0–$14.5 billion, with a 18%–20% margin, including about $3 billion from Prolec GE.
Wind revenue is forecast to decline in the low double digits, with around $400 million in EBITDA losses.
GEV Price Action: GE Vernova shares were up 7.74% at $1068.00 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Image by Saskia B via Shutterstock
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