GE Vernova reported a very strong Q2 2026 with orders doubling and backlog reaching $176bn. Management raised full-year revenue and FCF guidance significantly, citing accelerating demand in power and electrification, driven by data centers and grid modernization. Capacity expansion to 30 GW annual gas turbine output by 2030 was announced, with most 2030/2031 slots already sold. Wind remains a drag but improving services. Equipment orders more than doubled YoY; total backlog grew to $176bn (+$13bn QoQ).
GE Vernova reported a very strong Q2 2026 with orders doubling and backlog reaching $176bn. Management raised full-year revenue and FCF guidance significantly, citing accelerating demand in power and electrification, driven by data centers and grid modernization. Capacity expansion to 30 GW annual gas turbine output by 2030 was announced, with most 2030/2031 slots already sold. Wind remains a drag but improving services. Equipment orders more than doubled YoY; total backlog grew to $176bn (+$13bn QoQ).
Management's tone was confident, driven by accelerating demand, record backlog growth, margin expansion, and raised guidance; no notable shift in confidence from prior quarters.
Guidance · revenue to $46B
GE Vernova raised its 2026 free cash flow guidance and noted an 'approximately 30% year-over-year combined increase in R&D and CapEx to support innovation and growth.' Capacity expansions in gas power and electrification are being funded by customer down payments and lean…
125 gigawatts under contract by year-end. Management's tone was confident, driven by accelerating demand, record backlog growth, margin expansion, and raised guidance; no notable shift in confidence from prior quarters.
Management discussed investing in AI, robotics, and automation to drive productivity, with Ken stating 'we continue investing in AI, robotics, and automation to drive productivity over the medium and long term.' Scott also noted 'investing in R&D, robotics and AI to work smarter and continue driving financial and operational performance through lean.'
125 gigawatts under contract by year-end. Management's tone was confident, driven by accelerating demand, record backlog growth, margin expansion, and raised guidance; no notable shift in confidence from prior quarters.
GE Vernova raised its 2026 free cash flow guidance and noted an 'approximately 30% year-over-year combined increase in R&D and CapEx to support innovation and growth.' Capacity expansions in gas power and electrification are being funded by customer down payments and lean investments, with no mention of major new greenfield facilities.
Management's tone was confident, driven by accelerating demand, record backlog growth, margin expansion, and raised guidance; no notable shift in confidence from prior quarters.
“we now see further opportunity to serve this growing demand with 30 gigawatts of annual output in 30 in a capital efficient manner, utilizing lean and incremental machinery in our existing factory footprint”
“We reached 4 million operating hours for HA this quarter, up 1 million hours in just over a year, a significant milestone since its launch nearly 10 years ago.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Free cash flow | FY2026 | $11.5B–$12.5B | $12B | RAISED |
| Op margin | FY2026 | 12%–14% | 13% | MAINTAINED |
| Revenue | FY2026 | $45.5B–$46.5B | $46B | RAISED |
| RevenueELECTRIFICATION | FY2026 Q3 | $3.8B–$4B | $3.9B | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2025 Q3 | Free cash flow | FY2025 | $3B–$3.5B | $3.7B | Met / beat |
| FY2025 Q3 | Revenue | FY2025 | $36B–$37B | $38B | Met / beat |