GE Vernova raised its 2026 revenue forecast after strong earnings beat expectations

The energy company lifted its 2026 revenue outlook to a range of $45.5 billion to $46.5 billion, a $1 billion increase from what it had previously guided. The company also guided higher on free cash flow and its adjusted EBITDA margin.

Revenue in the second quarter reached $11.1 billion, up 22% from a year earlier. That exceeded analyst projections of $10.79 billion, according to the Wall Street Journal. Net income came in at $649 million, or $2.47 per share, compared with $492 million, or $1.86 per share, in the same period a year ago.

Orders of $24.2 billion grew 88% organically in the quarter, driven by the Power and Electrification segments. Free cash flow reached $5.1 billion, exceeding the total for all of 2025, the company said. The adjusted EBITDA margin expanded 340 basis points organically to 11.3%.

"With a backlog of $176 billion, continued revenue growth and margin expansion, and significant free cash flow generation, GE Vernova's momentum is building, and we are raising our 2026 financial guidance," chief executive Scott Strazik said in a statement.

The Power segment posted orders of $16.7 billion, up 134% organically, with revenues rising 14% to $5.5 billion. GE Vernova signed 20 gigawatts of new gas equipment contracts in the quarter and said it now anticipates having at least 125 GW of gas equipment under contract by year-end 2026. The company said it remains on track to deliver 20 GW of annual gas turbine output in the third quarter of 2026, targeting 24 GW in 2028 and 30 GW in 2030.

The Electrification segment posted orders of $6.3 billion, up 66% organically, with revenues climbing 68% to $3.6 billion. The company said data center orders have reached more than $5 billion year-to-date, more than double its 2025 total. Equipment backlog in the segment rose to $40.6 billion, up 69% year-over-year.

Wind was a weak point. Orders fell 40% organically to $1.2 billion, and revenues declined 10% to $2.0 billion, with losses widening due to lower Onshore Wind equipment volume and higher Offshore Wind project costs, the company said.

GE Vernova said it returned $3.9 billion to shareholders through the first half of the year and held a cash balance of $13.1 billion at the end of the quarter.