GE Vernova Q2 Revenue Tops Estimates as Earnings Miss, Shares Slide Despite Higher 2026 Outlook

GE Vernova (NYSE: GEV) reported mixed second-quarter 2026 results, with revenue beating Wall Street expectations but earnings falling short, sending the company's shares more than 6% lower in trading. Investors focused on the earnings miss despite strong order growth and an improved full-year outlook.

The energy equipment maker posted adjusted earnings per share of $2.47, missing analyst estimates of $3.04. Revenue climbed 22% year over year to $11.1 billion, exceeding the consensus forecast of $10.73 billion. Growth was primarily fueled by strong demand across the company's Power and Electrification businesses, which delivered 12% organic revenue growth.

CEO Scott Strazik highlighted the company's expanding momentum, pointing to a record $176 billion backlog, rising revenue, improving margins, and robust free cash flow generation as evidence of sustained global demand for power infrastructure.

Despite the earnings disappointment, GE Vernova raised its full-year 2026 guidance. The company now expects revenue between $45.5 billion and $46.5 billion, up from its previous forecast of $44.5 billion to $45.5 billion. It also significantly increased its free cash flow outlook to $11.5 billion-$12.5 billion, compared with the prior range of $6.5 billion-$7.5 billion, while maintaining its adjusted EBITDA margin forecast of 12%-14%.

One of the quarter's standout achievements was a surge in orders. Total orders jumped 88% organically to $24.2 billion, driven by exceptional demand for gas turbines and electrification projects. The Power segment secured 20 gigawatts (GW) of new gas equipment contracts, increasing its backlog to 116 GW, with management expecting at least 125 GW by the end of 2026. Electrification orders rose 66% organically to $6.3 billion, while data center-related orders surpassed $5 billion year-to-date.

Free cash flow reached $5.1 billion, exceeding the company's total free cash flow generated during 2025, supported by stronger profitability and improved working capital management.

However, the Wind segment remained a weak spot. Revenue declined 10%, and the business posted a $275 million EBITDA loss due to lower onshore wind equipment shipments and rising offshore project costs.

Analysts viewed the record order intake positively but raised concerns about GE Vernova's long-term capacity expansion plans. Goldman Sachs noted the record $24.2 billion in orders and management's new target to expand gas turbine capacity to 30 GW by 2030, up from its previous goal of 24 GW by 2028. BNP Paribas cautioned that investors may worry leading manufacturers are expanding production too aggressively, creating uncertainty about demand beyond the end of the decade.