January 29, 2026
Finance

GE Vernova Revises Upward Forecasts Following Fourth-Quarter Financial Results

Positive momentum in Power and Electrification bolsters revenue and cash flow outlook for 2026 and beyond

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Summary

GE Vernova Inc. posted a revenue increase in its fourth-quarter results, surpassing sales expectations, while earnings per share fell short of forecasts. Despite the mixed outcomes, the company upgraded its revenue and free cash flow guidance for 2026 and projected higher revenue for 2028, signaling solid growth prospects underpinned by a bolstered backlog and improved equipment margins.

Key Points

GE Vernova's fourth-quarter revenue grew 4% year-over-year, totaling $10.956 billion and exceeding analyst expectations of $10.213 billion.
Fourth-quarter earnings per share were $2.79, missing the forecast of $3.18, while GAAP diluted EPS rose notably to $13.39 from $1.73 the previous year.
The company expanded its backlog to $150 billion and reported improved equipment margins, contributing to confidence in its growth strategy.
GE Vernova raised its 2026 revenue guidance to $44-45 billion and free cash flow expectations to $5.0-5.5 billion, alongside a 2028 revenue target of $56 billion.

GE Vernova Inc. (NYSE: GEV) disclosed its financial performance for the fourth quarter, reflecting a combination of robust revenue growth and earnings challenges. The company reported total revenue of $10.956 billion for the quarter, marking a 4% increase from $10.559 billion reported in the same prior-year period. This top-line figure also exceeded analyst projections, which were set at $10.213 billion.

Despite this positive revenue trend, the company's earnings per share (EPS) for the fourth quarter were $2.79, falling short of the $3.18 consensus estimate among analysts. In contrast, GAAP diluted EPS significantly increased to $13.39 compared to $1.73 from the prior year, indicating gains on a different accounting basis.

Chief Executive Officer Scott Strazik emphasized the strength of GE Vernova's financial metrics in 2025, particularly highlighting continued momentum within the Power and Electrification segments. However, he pointed out a tempered outlook in the Wind segment, indicating a strategic focus on controllable factors within that area.

Further reinforcing the company's positive trajectory, GE Vernova has expanded its backlog size to $150 billion and reported improvements in equipment margins. Such factors, according to the CEO, establish a solid foundation as the company progresses into 2026.

Reflecting confidence in ongoing growth, GE Vernova revised its full-year 2026 revenue guidance upwards to a range of $44 billion to $45 billion, exceeding prior expectations. The company also enhanced its free cash flow forecast, targeting between $5.0 billion and $5.5 billion for 2026. Moreover, longer-term revenue projections saw an upward adjustment, with the company now anticipating $56 billion in revenue by 2028.

Market reaction to the announcement was favorable, with GE Vernova shares rising 0.8% during pre-market trading sessions, reaching $716.93 per share.

Following these results, equity analysts have updated their ratings and price targets for GE Vernova. James West, an analyst with Evercore ISI Group, sustained an Outperform rating on the stock and elevated his price target from $860 to $905. Similarly, Susquehanna analyst Charles Minervino retained a Positive rating and increased the price target to $820 from the prior $800.

GE Vernova’s stock currently reflects a managed market presence, capturing investor interest driven by solid financial fundamentals in the core Power and Electrification businesses. The outlook is underpinned by substantial backlog growth and improved operational efficiencies, which form the basis for the company’s elevated revenue and cash flow guidance.


As an entity operating amid dynamic market variables, GE Vernova continues to balance strong segments with areas requiring cautious management, especially the Wind business which demands focus on controllable factors to sustain performance.

Risks
  • Fourth-quarter EPS results fell short of analyst estimates, indicating potential earnings volatility.
  • The Wind segment remains a focus area with uncertainty, requiring the company to manage what it can control effectively.
  • Elevated revenue and cash flow guidance depend on sustained momentum in key business segments, which may face market or operational challenges.
  • The increased backlog and margin improvements, while positive, must be realized effectively to meet growth projections.
Disclosure
Education only / not financial advice
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