GE Vernova GEV is slated to release second-quarter 2026 results on July 22, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s EPS and revenues is pegged at $3.17 and $10.77 billion, respectively.
The earnings estimate for the to-be-reported quarter has moved up 7 cents over the past 60 days. In the year-ago period, the company reported EPS of $1.86. The Zacks Consensus Estimate for quarterly revenues indicates an 18.2% increase from the year-ago quarter’s figure.
For full-year 2026, the Zacks Consensus Estimate for GEV’s revenues is pegged at $45.36 billion, implying an increase of 19.2% year over year. The consensus mark for full-year EPS is pinned at $30.65, calling for a 73.3% year-over-year expansion. Moreover, the consensus mark for 2026 EPS points to a 0.8% upward revision over the past 60 days.
GEV’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark once). The average beat is 83.6%.
GE Vernova Price and EPS Surprise
GE Vernova price-eps-surprise | GE Vernova Quote
Factors Likely to Shape the Upcoming Results
We expect the company’s performance in the to-be-reported quarter to have been aided by the rising power, infrastructure and metal demand for AI data centers. AI-linked power demand and strong project wins should boost results. On the back of tailwinds like significant orders and backlog growth, margin expansion and cash generation, second-quarter performance is likely to have gotten a big lift.
The sharp rise in electricity demand owing to the rapid growth of data centers and the accelerating adoption of artificial intelligence is likely to drive results in the June quarter. This trend is creating wider growth opportunities for GE Vernova across its gas turbine business, grid solutions and broader power infrastructure, as governments and companies invest in more resilient and scalable energy systems to support increasing power consumption.
Favorable pricing and higher volumes are likely to have boosted EBITDA margins in the second quarter. For the second quarter of 2026, GEV expects continued year-over-year revenue growth and adjusted EBITDA margin expansion.
In the Power segment, the company expects continued strong growth in Gas equipment orders. We also anticipate 15% to 17% revenue growth driven by both higher equipment and services and an EBITDA margin of approximately 17% to 18%. The Zacks Consensus Estimate for power revenues is currently pegged at $5.5 billion, up 10.8% sequentially.
In the Electrification segment, management anticipates continued solid equipment orders with healthy margins. Second-quarter Electrification revenues are likely to be between $3.3 billion and $3.5 billion, per the company. GEV also expects strong year-over-year EBITDA margin expansion from higher volume, productivity and favorable pricing. The Zacks Consensus Estimate for power revenues is currently pegged at $3.5 billion, up 16.7% sequentially.
We also expect the company to continue adopting a shareholder-friendly stance, driven by its financial strength. Despite these positives, the offshore wind business remains a notable challenge. Project delays, higher costs and ongoing supply-chain issues continue to pressure performance. For the second quarter of 2026, management expects Wind revenues to decline at a mid-teens year-over-year rate due to lower onshore equipment deliveries, while EBITDA losses are projected between $200 million and $300 million. The ongoing economic turbulence also remains a key headwind.
Price Performance and Valuation
Shares of GE Vernova have surged roughly 63% year to date, handily outperforming the Zacks Alternate Energy – Other industry, ReNew Energy Global RNW and Montauk Renewables MNTK.
YTD Price Comparison
GE Vernova’s shares are currently trading at a premium, as suggested by the Value Score of F. The stock is trading at a premium, with a forward 12-month Price/Sales (P/S) of 5.86X compared with its industry’s 5.16X.
The company is also trading at a premium relative to ReNew Energy Global and Montauk Renewables. ReNew Energy Global and Montauk Renewables’ forward sales sit at 1.28X and 1.01X, respectively.
GEV Stock Looks Pricey
Investment Thesis
GE Vernova is benefiting from the widening gap between global demand for gas turbines and the industry's available supply, as utilities and independent power producers increasingly seek dependable power generation capacity to meet rapidly rising electricity demand.
GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing Small Modular Reactors. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification and grid expansion. GE Vernova is focusing on improving profitability in the wind division by tightening cost management, refining its project mix and enhancing operational efficiency.
Conclusion
GE Vernova is well-positioned for continued success. The company’s growth outlook for the second quarter is highly impressive. Strong Electrification and Power revenues should aid results, despite weakness in its Wind segment.
Backed by strong fundamentals, GEV looks like a compelling buy at current levels. The stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).