GEV US S&P 500Russell 1000 Earnings call

GE Vernova (GEV) · Q2 2026 results and valuation

Share price: $808.24 · 2026-11-11

GE Vernova provides products and services for the electric power industry, including technologies for power generation, wind energy, and electrification. The company serves utilities, industrial customers, and governments globally to manage and distribute electricity. It operates in international markets to support the transition to a more sustainable power system. Source: 10-K annual report (2026-01-29)

Results Q2 2026 vs Q1 2026 · previous quarter · published 22 Jul 2026 and 22 Apr 2026

Net income down 85.9% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.

1 · Numbers

−85.9%

Net income vs Q1 2026

Outlook given

Net income 668.0M vs 4.75B

Revenue +18.9%

Against the same quarter last year (Q2 2025) it is +30.0%, so the move on last quarter looks seasonal or timing-related rather than a trend.

Why Against the same quarter last year (+30.0%), net income rose because EBITDA margins expanded 320 basis points due to favorable price and higher volume, which more than offset inflation and additional expenses for capacity investments and R&D.

2 · How management spoke

Upbeat

More upbeat than 83% of company calls

Answers to analysts: restrained, but clearly less so than the script.

Similar to last call.

3 · What stood out

GE Vernova increased its 2026 free cash flow guidance to $11.5 billion to $12.5 billion from $6.5 billion to $7.5 billion due to stronger orders, down payments, and higher adjusted EBITDA.

Valuation

Is GE Vernova undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 8.7% growth a year (3-year revenue growth), the model's fair value is $288.27 a share — the stock trades 180% above it. Today's price assumes 22.4% growth a year.

Current price

$808.24

close of 2026-11-11

Market implies growth of i

+22.4% for 10 yrs

Fair value / share

$288.27

Buy below

$216.20

Price vs fair value

Overvalued 180%

Price vs buy-below price

Overvalued >200%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

The revenue guidance was raised by $1 billion to a range of $45.5 billion-$46.5 billion due to additional growth at Electrification and Power.
Key theme

GEV expects 2026 EBITDA losses of approximately $400 million because growth in offshore wind and onshore wind services offset lower onshore equipment volume.

Source quote
“We still expect EBITDA losses to be approximately $400 million in 2026, as improvement in onshore wind services and offshore wind offset the lower onshore equipment volume.”
Figure

GEV anticipates 17%-19% revenue growth driven by higher equipment shipments for gas power and continued higher services.

Source quote
“We also anticipate 17%-19% revenue growth driven by higher equipment as we increase our annualized run rate for gas power equipment shipments and continued higher services.”
Guidance

GEV increased its 2026 free cash flow guidance to $11.5 billion to $12.5 billion from $6.5 billion to $7.5 billion due to stronger orders, down payments, and higher adjusted EBITDA.
Guidance

GEV expects at least 125 gigawatts under contract by the end of the year.

4 more

Figure

Margins grew to 10.5% in the first half of 2026, up 360 basis points from the first half of 2025, despite equipment revenue growing faster than services.

Source quote
“In the first half of 2026, we have grown margins to 10.5%, up 360 basis points from the first half of 2025, even as equipment revenue grows faster than services and becomes a larger percentage of total revenue.”
Figure

Adjusted EBITDA grew 61% year-over-year to $1.2 billion, driven by Power and Electrification.

Source quote
“Adjusted EBITDA grew 61% year-over-year to $1.2 billion, led by Power and Electrification.”
Figure

Adjusted EBITDA and working capital management drove $5.1 billion of free cash flow in the second quarter.

Source quote
“The strong adjusted EBITDA and working capital management drove $5.1 billion of free cash flow in the second quarter.”
Figure

Electrification equipment orders outpaced revenue to increase the equipment backlog to $41 billion, which is up 69%, or roughly $17 billion, compared to the second quarter of 2025.

Source quote
“Electrification equipment orders continued outpacing revenue and further increased our equipment backlog to $41 billion, up 69%, or roughly $17 billion compared to the second quarter of 2025.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was upbeat)

Answers to analysts Restrained (was restrained)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 92% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Turning to Power on Slide 6, the segment delivered another strong quarter with robust demand, strong revenue growth, and solid EBITDA margin expansion.”

“Turning to slide five, we delivered strong results in 2Q 2026 with robust orders, growing backlog and revenues, margin expansion, and significant free cash flow generation.”

“With our strong cash position, we'll continue to seek opportunities to utilize cash proactively when those opportunities generate solid economic returns.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	11.10B	9.34B	+18.9%	9.11B	+21.9%
Gross profit	2.36B	1.78B	+32.5%	1.85B	+27.8%
Operating income	653.0M	179.0M	+264.8%	378.0M	+72.8%
Net income	668.0M	4.75B	−85.9%	514.0M	+30.0%
EPS	2.47	17.44	−85.8%	1.86	+32.8%
P/E today 20.3	33.7	25.5	+8.2	128.1	−94.4

Topics

Most discussed now

GE Vernova justs closed on the Robotech Automation acquisition in July, and it is making real progress with automation into its factories...
A lot of this comes down to how many years out are customers ready to contract, and also, from peak...
In power, GE Vernova continues to see strong global demand for its equipment and services.
Equipment backlog margins remain healthy, reflecting favorable price and GE Vernova's continued focus on disciplined underwriting.
This includes investing in capacity expansions to meet growing demand from GE Vernova's customers, investing in R&D, robotics and AI to...

Faded since Q1 2026

Fading As the opportunity for it to serve this growing market expands, GE Vernova's humility and hunger to meet this moment only...
Fading When you take a step back—and it is why GE Vernova has invested real money into the EMS solution—when you are...
Fading GE Vernova is making progress with a stability block solution that complements what it is doing—that is an MV UPS solution,...
Fading I have seen—and GE Vernova has been iterating with its customers on—some of what you could be citing in the press...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-28 Results of operations · SEC 8-K
2026-08-27 Director or officer change · SEC 8-K
Claire McDonough will succeed Kenneth Parks as Chief Financial Officer of GE Vernova on January 1, 2027, with a base salary of $1,000,000 and a target LTIP equity award of $5,225,000.
2026-07-22 Results of operations · SEC 8-K
GE Vernova Inc. released its second-quarter 2026 financial results on July 22, 2026, as detailed in the attached Exhibit 99.
2026-05-22 Shareholder vote results · SEC 8-K · routine
2026-04-22 Results of operations · SEC 8-K
GE Vernova Inc. released its first-quarter 2026 financial results on April 22, 2026, as detailed in the attached Exhibit 99.
2026-02-04 Other events · SEC 8-K
2026-01-28 Results of operations · SEC 8-K
GE Vernova Inc. released its fourth-quarter 2025 financial results on January 28, 2026, as detailed in the attached Exhibit 99.
2026-01-21 Director or officer change · SEC 8-K
Mavi Zingoni resigned as CEO of the Power Segment effective January 21, 2026, and Eric Gray was appointed to the role on the same date.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.

Dilution

weighted-average basic shares, per quarter. Change: -1.5% YoY, -0.4% QoQ.

Quarter	Shares
Q3 2024	275.0M
Q1 2025	275.0M
Q2 2025	272.0M
Q3 2025	272.0M
Q1 2026	269.0M
Q2 2026	268.0M

Shares outstanding: 266.3M (2026-06-30)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 31 filings parsed.

Sold by insiders

12.5K shares

$11.5M · 3 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

2027

total backlog to reach $200 billion

Source quote
“This is up $13 billion from last quarter and is on track to reach $200 billion in 2027.”
the next decade

units expected to run base load and provide substantial services growth

Source quote
“More than half of the gigawatts that are now under contract are for our largest, most efficient HA turbines, units expected to run base load and provide substantial services growth for us in the next decade.”
by the end of the year

expect at least 125 gigawatts under contract

Source quote
“We now expect at least 125 gigawatts under contract by the end of the year.”
into 2031

agreements signed

Source quote
“We had a strong first half and now have agreements signed into 2031.”
In the second half of the year

expect to convert many of these SRAs into orders

Source quote
“In the second half of the year, we expect to convert many of these SRAs into orders, driving continued growth in our backlog while achieving an important inflection point with gigawatts and backlog greater than SRAs.”