GE Vernova slips as earnings miss clouds brighter sales forecast
Shares fell nearly 5% before the bell after second-quarter EPS missed Wall Street estimates, even as GE Vernova lifted its 2026 outlook.
By Sal Moretti · Money Reporter
2 min read
GE Vernova raised its full-year forecast, posted double-digit revenue growth and still got clipped in early trading after its quarterly profit landed below Wall Street’s target.
The Cambridge, Massachusetts-based energy equipment company’s shares were down almost 5% in premarket trading Wednesday, MarketWatch reported. The move came even though the stock remained up 65% for the year to date.
GE Vernova said second-quarter revenue rose 22% from a year earlier to $11.1 billion for the three months ended June 30. That was ahead of the $10.73 billion expected by analysts, according to London Stock Exchange Group data cited by MarketWatch.
The earnings line was the problem. The company reported earnings per share of $2.47, missing the Wall Street consensus estimate of $3.04.
Adjusted earnings before interest, taxes, depreciation and amortization came in at $1.25 billion, also short of analysts’ expectations for $1.28 billion, according to LSEG data reported by MarketWatch.
Guidance goes up
GE Vernova, which was separated from General Electric two years ago, lifted its 2026 revenue outlook by $1 billion. The company now expects annual revenue of $45.5 billion to $46.5 billion.
It also raised its free-cash-flow forecast to a range of $11.5 billion to $12.5 billion. Its previous projection was $6.5 billion to $7.5 billion, MarketWatch reported.
Chief Executive Scott Strazik said in a company statement that demand for GE Vernova’s products and services continued to grow during the quarter.
“We delivered strong financial results in the second quarter as global demand for our products and solutions continues to grow,” Strazik said. He added that the company had a $176 billion backlog and was raising its 2026 financial guidance as revenue, margins and cash generation improved.
Analysts watch the selloff
Oppenheimer analysts led by Colin Rusch said they remained positive on GE Vernova’s capital efficiency as the company pursues growth plans and buys back stock, according to MarketWatch.
The Oppenheimer team said it expected the stock to recover from the early drop, which it described as driven by headline numbers.
Strazik also said GE Vernova’s power business now expects to book contracts for at least 125 gigawatts of gas equipment by the end of the year. At the start of the year, the company had expected 110 gigawatts.
Goldman Sachs analysts led by Joe Ritchie wrote Wednesday that stocks in the sector often react negatively when companies raise capacity, MarketWatch reported.
The result was a mixed morning for investors: stronger revenue, a bigger annual outlook and a larger gas-equipment target on one side, with earnings per share and adjusted EBITDA misses on the other.
This story draws on original reporting from MarketWatch.