With a market cap of $12 billion, Wisconsin-based Generac Holdings Inc. (GNRC) is a global energy technology company specializing in backup power generation systems, energy storage, and energy management solutions. Its product portfolio includes residential standby generators, portable generators, commercial and industrial power systems, battery storage solutions, and smart energy management technologies.
The backup power giant is expected to announce its fiscal third-quarter earnings for 2026 before the market opens on Wednesday, Oct. 28. Ahead of the event, analysts expect GNRC to report a profit of $2.38 per share on a diluted basis, up 30.1% from $1.83 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters, while missing the forecast on two other occasions.
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For the current year, analysts expect GNRC to report EPS of $9.74, up 53.6% from $6.34 in fiscal 2025. Its EPS is expected to rise 27% year over year to $12.37 in fiscal 2027.
www.barchart.comGNRC stock has surged 2.7% over the past year, underperforming the S&P 500 Index’s ($SPX) 14.4% gains, and the State Street Industrial Select Sector SPDR ETF’s (XLI) 9.1% gains over the same time frame.
www.barchart.comGenerac has trailed the broader market over the past year as modest sales growth, declining operating margins, and weakening earnings have weighed on its performance. Revenue grew at an annual rate of just 5.1% over the past two years, while its operating margin contracted by 6.7 percentage points over five years. Additionally, earnings per share fell by 1.9% annually over the same period, signaling profitability challenges that may have dampened investor sentiment.
On the bright side, Generac is expanding its presence in AI infrastructure through a major deal with Amazon.com (AMZN) to supply approximately $2.4 billion worth of generators in 2027 and 2028, with the partnership potentially growing to $8 billion. Amazon also received a warrant to purchase up to 1.69 million Generac shares, with a potential exercise value of about $340 million.
Analysts’ consensus opinion on GNRC stock is highly bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and six give a “Hold.” GNRC’s average analyst price target is $288.95, indicating a potential upside of 53.7% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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