GE Vernova lifts outlook as shares retreat

GE Vernova (GEV) reported second-quarter 2026 revenue of $11,104 million, supported by solid demand across its portfolio. Diluted earnings per share for the period were $2.47. Adjusted EBITDA came in at $1,250 million, representing an 11.3% margin, while free cash flow totaled $5,107 million, indicating strong cash generation during the quarter.

Order activity was a key feature of the quarter. Total orders reached $24.2 billion, an 88% organic increase, and the company cited a total backlog of about $176 billion. This elevated order intake reflected robust demand in core power markets and infrastructure linked to data centers.

In response to the strong top-line trajectory and cash performance, management raised its full-year 2026 revenue guidance. The company now expects revenue between $45.5 billion and $46.5 billion. Full-year free-cash-flow guidance was also lifted to a range of $11.5 billion to $12.5 billion.

Despite these upward revisions, GE Vernova (GEV) left its adjusted EBITDA margin guidance unchanged. The target margin for the full year remains between 12% and 14%. The unchanged profitability outlook, alongside elevated expectations for AI- and data-center-driven demand, formed an important backdrop for how the market received the update.

Performance across segments was uneven. The Power segment delivered revenue of about $5.48 billion in the quarter, with orders of roughly $16.7 billion, highlighting strong demand for generation equipment and related services. Electrification also contributed meaningfully, posting revenue of about $3.64 billion and orders of around $6.35 billion, supported in part by activity tied to data centers and grid infrastructure.

These segments were central to the surge in overall orders and the expansion of the company’s backlog. Their growth underpinned the decision to lift revenue and free-cash-flow guidance, underscoring the importance of conventional and electrification-focused assets in meeting rising power needs.

In contrast, the Wind business remained a drag on results. Wind orders fell by about 40% in the quarter, signaling weaker demand and project activity. The segment posted a Q2 EBITDA loss of about $275 million, and management expects roughly $400 million of Wind EBITDA losses for full-year 2026.

The mixed performance across segments, combined with unchanged margin guidance, weighed on investor sentiment. Shares of GE Vernova (GEV) slid after the earnings release, even as the company raised its revenue and free-cash-flow outlook and reported strong orders linked to power and data-center demand. The reaction reflected the tension between robust growth indicators and ongoing profitability and execution challenges, particularly in Wind.