GE Vernova Raises 2026 and 2028 Outlook on Data Center Power Boom, but Stock Slips
 |
| GE Vernova Raises 2026 and 2028 Outlook on Data Center Power Boom |
GE Vernova raised its 2026 and 2028 outlook after strong Q4 earnings driven by gas turbine demand from data centers. Here’s why GEV stock still fell
What Happened to GE Vernova Stock?
GE Vernova (NYSE: GEV) surprised investors early Wednesday by raising both its 2026 and 2028 outlook following a blowout fourth-quarter earnings report. Despite the strong results and upgraded long-term guidance, GEV stock fell in premarket trading, a day after rallying 4% and trading near an early technical entry point.
The stock’s pullback highlights a familiar market dynamic: investors often “sell the news” after a strong run-up, especially when expectations are already elevated.
When and Where Did This Occur?
The announcement came early Wednesday morning, alongside GE Vernova’s Q4 earnings release. The reaction played out in U.S. premarket trading, with the stock slipping despite the company delivering results that exceeded Wall Street expectations across earnings, revenue, and orders.
Why Did GE Vernova Raise Its Outlook?
GE Vernova’s improved outlook is driven primarily by surging demand for power generation equipment, especially natural-gas turbines and energy storage systems. This demand is being fueled by the rapid expansion of data centers, which require reliable, scalable power to support cloud computing and artificial intelligence workloads.
In the fourth quarter, GE Vernova reported:
Diluted EPS of $13.39, up sharply from $1.73 a year ago and far above the $3.28 consensus estimate
Revenue of $10.96 billion, nearly 4% higher year over year and well above analyst expectations of $10.21 billion
These results gave management confidence to lift its long-term financial targets.
How Strong Was Demand in the Gas Power Segment?
The gas power segment was the clear standout. GE Vernova said orders surged 52% year over year to $32.8 billion in Q4 alone. The company also signed 24 gigawatts (GW) of new gas equipment contracts, including:
21 GW of slot reservation agreements
3 GW of firm equipment orders
Slot reservation agreements are particularly important, as they lock in future production capacity and signal sustained long-term demand.
As a result, GE Vernova’s gas power equipment backlog and slot reservations expanded from 62 GW to 83 GW during the quarter, strengthening revenue visibility well into the second half of the decade.
Why Did the Stock Fall Despite Strong Results?
Although the fundamentals were strong, the stock had already rallied sharply ahead of earnings, setting a high bar. Investors may also be cautious about:
Execution risks tied to fulfilling a rapidly growing backlog
Long lead times and cost pressures in large-scale energy equipment manufacturing
Broader market volatility affecting S&P 500 stocks
In short, the outlook improved—but expectations were already pricing in much of the good news.
What Does This Mean for GE Vernova Going Forward?
GE Vernova’s results underscore its strategic position at the intersection of energy reliability and digital growth. As AI, cloud computing, and hyperscale data centers expand, demand for efficient gas power and grid-stabilizing equipment is likely to remain strong.
By raising its 2026 and 2028 guidance, the company signaled confidence that this demand is not a short-term spike, but a multi-year structural trend.
Final Takeaway
GE Vernova’s upgraded outlook reflects booming demand from data centers and a rapidly expanding gas power backlog. While the stock dipped on profit-taking, the underlying story remains one of strong earnings momentum, long-term visibility, and rising global power needs—key factors that continue to shape the company’s growth trajectory.
