GE Vernova had another strong quarter and raised its full-year outlook for the second time in a row. Order growth was the main highlight of Wednesday’s report. The stock rose in premarket trading.
The company reported second-quarter earnings before interest, taxes, depreciation, and amortization of $1.2 billion on sales of $11.1 billion. Analysts had expected Ebitda of $1.3 billion on sales of $10.8 billion. Last year, Ebitda was about $800 million on sales of $9.1 billion.
Orders reached $24.2 billion, which is 88% higher than a year ago and up from $18.3 billion in the first quarter, when orders had grown 71% year over year. For 2026, GE Vernova now expects sales of about $46 billion and Ebitda of around $6 billion, up from its previous forecast of $45 billion in sales and about $5.9 billion in Ebitda given in April.
Shares rose nearly 5% in premarket trading, even though S&P 500 and Dow Jones Industrial Average futures were down.
Strong demand for GE Vernova’s power generation equipment, driven by the growth of AI data centers, has pushed the stock to levels few expected. The shares have jumped about 700% since the company separated from GE Aerospace in 2024. Investors are watching Wednesday’s earnings reaction closely to see if the broader AI trade will continue or if more volatility is ahead for AI-related stocks.
Higher electricity demand has kept GE Vernova’s factories busy, improved pricing, and increased its order backlog. This has made the company an important indicator for the health of the AI sector. Wall Street’s average price targets for the stock have risen sharply since the spinoff, showing that few analysts expected the rally to go this far.
