GE Vernova Raises Outlook

GE Vernova raised its 2026 revenue outlook on April 22 after a surge in orders tied to data centers and grid equipment. (usnews.com) The company now expects 2026 revenue of $44.5 billion to $45.5 billion, up from its prior range of $44 billion to $45 billion. First-quarter orders reached $18.3 billion, up more than 71% organically. (usnews.com) Shares rose more than 13% to an all-time high in early trading after the update. Reuters reported the company also lifted its adjusted core profit margin forecast as demand strengthened across its power and electrification businesses. (reuters.com) Data centers are large warehouses full of servers, and those servers need steady electricity around the clock. That demand is pushing utilities and developers to buy more turbines, transformers, switchgear and other equipment that moves power from plants to buildings. (reuters.com) GE Vernova sits in the middle of that buildout because it sells both generation equipment and grid hardware. The company says customers using its technologies generate about 25% of the world’s electricity, and its electrification business is focused on modernizing the grid. (gevernova.com) The first-quarter numbers showed that shift most clearly in the businesses tied to power delivery. Reuters reported core profit in electrification rose to $528 million from $205 million a year earlier, while power unit profit climbed to $811 million, nearly 57% higher. (usnews.com) The company’s April 22 investor materials also said first-quarter revenue rose to about $9.3 billion and free cash flow reached about $4.8 billion. GE Vernova posted net income of about $4.7 billion, helped by a large gain tied primarily to the Prolec GE transaction. (sec.gov) That mix matters because the artificial intelligence boom has mostly been told through chip stocks and cloud spending. GE Vernova’s results point to a second bill coming due in substations, transmission gear and gas-fired generation that can keep data centers running when renewable output changes. (reuters.com) GE Vernova was spun out of General Electric in April 2024 as the company split into separate aerospace, health-care and energy businesses. Two years later, its strongest signal to investors is that the race to build computing capacity is also turning into a race to build enough power around it. (gevernova.com; reuters.com)