From Investor's Business Daily, January 28:
GE Vernova Raises 2026 And 2028 Outlook For These Reasons; S&P 500 Stock Falls
GE Vernova (GEV) early Wednesday raised its 2026 outlook, while also hiking its 2028 guidance, as it reported fourth-quarter earnings. GEV stock fell before the stock market open after rallying 4% Tuesday, within a base and near an early entry.
GE Vernova saw diluted earnings balloon to $13.39 per share, up from $1.73 per share a year ago and well above the $3.28 expectation. The company also reported fourth-quarter revenue increase nearly 4% to $10.96 billion. Prior to Wednesday's release, analysts expected the maker of natural-gas turbines to report revenue of $10.21 billion, according to FactSet.
The strong quarterly performance was underpinned by strong sales of gas turbines and storage equipment to power generation firms amid booming demand from data centers.
In Q4, GE Vernova reported orders in its gas power segment increased 52% to $32.8 billion, and that it signed 24 gigawatts of new gas equipment contracts, including 21 gigawatts of slot reservation agreements and 3 gigawatts of orders.
Overall in Q4, GE Vernova's gas power equipment backlog and slot reservation agreements grew from 62 to 83 gigawatts.
"We delivered strong financial performance in 2025 with continued momentum in power and electrification while focusing on what we can control in wind," GE Vernova CEO Scott Strazik said in Wednesday's earnings release, noting that the company's backlog increased to $150 billion, "with better equipment margins, and are entering 2026 with significant momentum."
GE Vernova Outlook
Based on this, GE Vernova updated its 2026 and 2028 guidance to include ProlecGE, the Mexico-based transformer manufacturer which it announced in October it was acquiring.For 2026, GE Vernova now expects revenue of $44 billion to $45 billion, up from $41 billion to $42 billion, with adjusted EBITDA margin of 11%-13% and free cash flow of $5 billion to $5.5 billion, up from the previous $4.5 billion to $5 billion view.
The company forecasts 16% to 18% organic revenue growth in 2026 for its gas power segment.
Looking further out, GE Vernova expects that by 2028, it will have revenue of $56 billion, up from its prior $52 billion view, with adjusted EBITDA margin of 20%. Cumulative free cash flow is expected to be at least $24 billion, up from around $22 billion.
"Our platform of advanced solutions is well-positioned to serve the growing, long-cycle electric power market, and there is substantial opportunity to deliver even better performance ahead. I'm grateful for our team's dedication and confident in our ability to meet our full potential today and for the long-term," Strazik said.
GE Vernova Stock
Shares of GE Vernova declined around 2% prior to Wednesday's stock market open. The S&P 500 stock is currently in a consolidation that began on Dec. 10, 2025, when the stock shot up almost 16% after the company raised its guidance.So far, GE Vernova's stock has been one of the prime beneficiaries of the data-center buildout. Over the past 12 months, the stock is up about 110%. However, its recent gains have been more muted. In the last six months, the stock is up just under 7%....
....MUCH MORE including some IBD-style chartology
Earlier, IBD's confreres at Barron's:
"GE Vernova Stock Jumps After Earnings. It Raises Guidance Again" (GEV)
