GE Vernova Lifts Outlook on Surge From Data Center Demand — Update

By Connor Hart

GE Vernova is riding the data-center boom, lifting its outlook for the year as demand for the power and grid equipment needed to support artificial intelligence surges.

The energy company, formed from the breakup of General Electric, said Wednesday that accelerating investments in electrification infrastructure helped drive a sharp increase in orders and backlog during the recent quarter.

Shares jumped 15%, to $1,137.47, shortly after the opening bell. The stock is up nearly 70% since the beginning of the year.

GE Vernova's electrification unit has grown its backlog to about $42 billion, up from roughly $9 billion at the end of 2022.

"We expect substantially more growth moving forward," Chief Executive Scott Strazik said on a call with analysts, noting that data centers accounted for roughly $2.4 billion in orders during the latest quarter--more than in all of last year.

The company's power business is also benefiting from strong global demand for gas turbines and related services, helping offset continued weakness in its wind division and driving overall profit and revenue higher.

GE Vernova now expects revenue of $44.5 billion to $45.5 billion in 2026, up from a prior outlook of $44 billion to $45 billion. The company also raised its outlooks for free cash flow and adjusted Ebitda margin.

During the first quarter, total orders jumped 71% to $18.3 billion, and backlog grew to $163 billion. The increases were driven by growth across all segments and its recent acquisition of Prolec GE.

In the first quarter, GE Vernova posted a profit of $4.75 billion, compared with $264 million a year ago. Quarterly earnings of $17.44 a share topped analyst expectations for $1.95 a share, according to FactSet. The recent quarter included a $3.99 billion pre-tax gain related to the Prolec GE acquisition.

Revenue climbed 16% to $9.34 billion, ahead of Wall Street models for $9.25 billion.

GE Vernova's electrification unit remained the fastest-growing part of the business, with revenue rising 61% on strong demand for transformers, grid equipment and high-voltage systems used in large-scale power networks and data centers. The power unit posted 12% revenue growth, while wind revenue fell 23% amid weaker onshore equipment deliveries.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

April 22, 2026 10:07 ET (14:07 GMT)