GE Vernova Inc. GEV is increasingly positioning itself as a key beneficiary of the global grid modernization wave, fueled by the rapid expansion of artificial intelligence, accelerating industrial electrification, and increasing global electricity demand.
The company’s Electrification segment is experiencing strong momentum as utilities and major data center operators modernize aging power infrastructure and expand transmission capacity. In the first quarter of 2026, Electrification orders increased 86% organically year over year to $7.1 billion, while revenues rose 61%, highlighting robust demand across North America and Asia.
GE Vernova is also benefiting from increasing grid equipment shortages. The company’s completed acquisition of the remaining 50% stake in Prolec GE expands its ability to serve utilities and industrial customers facing growing grid infrastructure constraints.
GEV’s remaining performance obligation (RPO) reached nearly $163.3 billion as of March 31, 2026, highlighting strong long-term revenue visibility across both equipment and services. This backlog reflects increasing demand for grid modernization projects, gas power systems, and electrification technologies. GE Vernova’s Power segment is also benefiting from rising electricity demand from AI data centers.
Apart from utilities, industrial operators and hyperscalers are increasingly investing in high-voltage transmission systems, power conversion technologies, and grid automation software to improve reliability and efficiency. GE Vernova’s broad portfolio across generation, transmission, and grid orchestration positions it to benefit from multiple layers of the electrification trend.
Companies Expanding Grid and Power Infrastructure
Several other companies positioned to benefit from growing electricity demand and grid investment are discussed below.
Quanta Services PWR continues to benefit from rising utility infrastructure spending as utilities expand transmission networks and modernize aging grid systems to support electrification and renewable integration.
Eaton Corporation ETN is witnessing strong demand for electrical equipment and power management solutions as data center operators and industrial customers invest heavily in energy infrastructure upgrades.
GEV Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 EPS indicates an increase of 71.91% and that for 2027 EPS implies a decline of 19.94% year over year.
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GEV Stock Trading at a Premium
GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 36.02X compared with the industry average of 21.31X.
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GEV Stock’s Price Performance
In the past three months, the company’s shares have risen 21.9% compared with the industry’s 3.5% growth.
Image Source: Zacks Investment Research
GEV’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Quanta Services, Inc. (PWR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).