GE Vernova Inc.’s GEV sizable and expanding services franchise is one of the company's most underrated strengths. Although GE Vernova is primarily known for its gas turbines, grid equipment and renewable energy technologies, its large installed base serves as a significant source of recurring revenues.
The company's equipment helps generate approximately 25% of the world's electricity, creating a substantial opportunity to provide maintenance, upgrades, repairs and operational support throughout the life cycle of these assets.
Utilities and power producers rely on GE Vernova's expertise to maintain the reliability and efficiency of critical power infrastructure, resulting in long-term customer relationships and recurring service contracts.
The company continues to see strong demand across its Power segment, supported by both equipment and services. As customers seek to maximize the performance of existing generation assets while meeting rising electricity demand, service agreements are becoming increasingly important. These contracts not only generate recurring revenues but also provide greater visibility into future cash flows and earnings.
GE Vernova's growing backlog further highlights the strength of its service franchise. The company ended the first quarter of 2026 with remaining performance obligations of approximately $163.3 billion, reflecting substantial long-term commitments across both equipment and services. The service component of this backlog provides an important foundation for future revenue generation.
With utilities extending the life of existing power assets and global electricity demand continuing to rise, GE Vernova's services business appears well positioned to provide a durable source of growth across economic and industry cycles.
Utilities Benefiting From Long-Term Power Demand
Several utility companies are also positioned to benefit from rising electricity demand and the need to maintain and optimize critical power infrastructure, as discussed below:
Vistra Corp. VST is leveraging its diversified generation portfolio to capitalize on rising power consumption and increasing demand for dependable electricity supply.
Duke Energy DUK continues to invest in grid modernization and generation assets to support long-term electricity demand growth across its regulated service territories.
GEV Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 72.92% and that for 2027 EPS implies a decline of 20.31% 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 33.88X compared with the industry average of 21.22X.
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GEV Stock’s Price Performance
In the past three months, the company’s shares have risen 13.7% against the industry’s 2% decline.
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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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Duke Energy Corporation (DUK): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).