Key Highlights
- Shares of GE Vernova climb 4.73% following third-quarter results showing $12.6 billion in revenue.
- Third-quarter orders surge 96% to $29.3 billion, pushing total backlog toward $197 billion.
- Company elevates 2026 revenue expectations after delivering strong Power segment performance.
- Free cash flow reaches $5.4 billion in Q3, marking substantial improvement from prior year.
- Board authorizes $20 billion share repurchase program, doubling previous authorization.
Shares of GE Vernova (GEV) advanced 4.73% to $895.08 during regular trading, adding $40.46 after the energy technology company disclosed robust third-quarter financial performance. The firm posted $12.6 billion in quarterly revenue, marking 27% expansion, while organic order intake jumped 96% to $29.3 billion. Pre-market activity showed shares declining 0.60% to $890.15 despite upgraded full-year projections and improved profitability metrics.
Third-quarter results showcase profitability expansion
GE Vernova delivered $1.3 billion in net income for the third quarter, a significant increase from $453 million in the same period last year. Diluted earnings per share rose 193% to $4.81, demonstrating improved operational execution across the business. Net income margin expanded to 10.2% from 4.5% in the year-ago quarter.
Adjusted EBITDA totaled $1.9 billion, with the corresponding margin widening to 15.4% versus 8.1% twelve months earlier. Cash generated from operating activities reached $6.1 billion, bolstering the company’s financial flexibility. Free cash flow surged to $5.4 billion compared with $732 million in the prior-year quarter.
The firm’s order backlog reached $197 billion after incorporating $20 billion in new bookings during the quarter. Equipment sales and long-term service agreements fueled expansion across both Power and Electrification operations. Management anticipates the backlog will surpass $200 billion by the end of the fourth quarter in 2026.
Power and Electrification segments post robust top-line gains
GE Vernova’s Power division posted $6.1 billion in quarterly revenue, up 25% year-over-year. Segment orders climbed to $21.8 billion, reflecting 178% organic expansion fueled predominantly by gas turbine equipment contracts. The company booked 11 gigawatts of new gas equipment orders during the three-month period.
Combined gas equipment backlog and slot reservations rose to 122 gigawatts from 116 gigawatts previously. The company projects this combined metric will reach at least 130 gigawatts by year-end. This growth reflects accelerating demand for electricity infrastructure from utilities, industrial operators, and data center developers.
Electrification division revenue jumped 51% to $3.9 billion, driven by grid infrastructure projects and transmission equipment sales. Equipment backlog for this segment increased 60% annually to $42.2 billion, including additions from the Prolec GE acquisition. Wind operations generated $2.7 billion in revenue, up 4%, though the segment continues working toward improved margins.
Company upgrades 2026 outlook and increases capital allocation
GE Vernova elevated its 2026 revenue guidance to a range of $46.5 billion to $47.5 billion, up from the prior forecast of $45.5 billion to $46.5 billion. The revision reflects sustained momentum across core operations. Leadership also raised the adjusted EBITDA margin outlook to 13.5%–14.5%, compared with the earlier projection of 12%–14%.
GE Vernova increased its annual free cash flow guidance to $16 billion–$17 billion from the previous range of $11.5 billion–$12.5 billion, underscoring confidence in cash generation capabilities. The company held $16.8 billion in cash at the end of September, providing substantial resources for growth initiatives and capital returns.
In October, the board doubled the share buyback authorization to $20 billion from $10 billion. Separately, the company announced plans to acquire Trench Group for $9 billion, strengthening its position in high-voltage equipment markets. Management expects to finalize the Trench Group transaction in late 2027, supporting the broader electrification growth strategy.
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