GE Vernova is riding the AI wave, as demand for electric-grid equipment builds

By Tomi Kilgore

The stock seesawed around the flatline, as investors weighed a big earnings beat and raised outlook against a weakening wind power business

GE Vernova beats earnings expectations and raised it full-year outlook, but the stock falters as the wind-power business lost a lot more money than feared.

Shares of GE Vernova swung between gains and losses on Wednesday, after the maker of energy-producing equipment reported strong quarterly results, but also losses as the Trump administration's disdain for wind power was mounting.

The company said its wind business lost $600 million in 2025 - 50% more than expected - driven by the U.S. government's announcement in December that it was halting all offshore wind activity.

On the bright side, the company continued to see strong demand for electric-grid and data-center equipment, given the need to fuel the boom in artificial intelligence. Ironically, some analysts said GE Vernova will be a key beneficiary of the Trump administration's push to lower electricity prices.

Looking ahead, the company raised its overall revenue outlook for 2026 and the next three years. For the first quarter, wind revenue is expected to decline at a high-teens percentage rate, while Wall Street had been expecting a high-single-digit decline.

The stock was little changed in recent morning trading. It was up 3.1% and down 2.7% since the opening bell. In the premarket session, the stock was up as much as 7.5% - in record territory - moments after results were released.

Net income for the quarter to Dec. 31 jumped to $3.66 billion from $484 million a year ago, including a $2.57 billion benefit from an income-tax provision. Earnings per share rose to $13.39 from $1.73. The average analyst EPS estimate compiled by FactSet was $2.93.

Total revenue grew 3.8% to $10.96 billion, well above the FactSet consensus of $10.21 billion.

Among the company's business segments, power revenue was up 5.9% to $5.75 billion, as orders for gas-power equipment tripled due to higher volume and prices. Electrification revenue charged up 35.7% to $2.96 billion, owing to particularly strong demand for grid equipment in the Middle East and North America, with orders surging 55%.

Meanwhile, wind revenue dropped 23.8% to $2.37 billion, as onshore-equipment deliveries declined, as President Donald Trump made it clear he wasn't a fan of wind power since the day he took office.

Free cash flow more than tripled to $1.81 billion, the highest since the company separated from the former General Electric in April 2024, and above expectations of $1.72 billion.

Shareholders benefited from the increase in free cash flow, as GE Vernova spent $1.1 billion during the fourth quarter on share repurchases, up from $700 million in the third quarter.

For 2026, the company raised its revenue guidance range to $44 billion to $45 billion from $41 billion to $42 billion, compared with the FactSet consensus of $42.13 billion.

The new outlook includes expected electrification revenue of $13.5 billion to $14 billion, which is above analysts' projections of $12.3 billion. It includes a potential negative impact of $250 million in wind revenue resulting from moves made by the Trump administration.

The long-term outlook for total revenue was also increased, as the target for revenue by 2028 was lifted to $56 billion from $52 billion.

The stock, which soared 98.7% in 2025, has gained about 6% to start 2026. In comparison, the S&P 500 index SPX rose 16.4% last year, and has tacked on 2% so far this year.

-Tomi Kilgore

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01-28-26 1120ET