GE Vernova (GEV) Stock Slips Despite Raised 2026 and 2028 Revenue Guidance

TLDR

• GE Vernova raised 2026 revenue guidance to $44.5 billion from $41.5 billion and 2028 guidance to $56 billion from $52 billion
• Fourth quarter orders hit $22.2 billion, crushing sales of $11 billion and analyst expectations
• Q4 Ebitda came in at $1.2 billion, slightly below Wall Street’s $1.3 billion estimate
• Stock fell 1.3% after initial 6% jump as investors wanted stronger 2025 profit guidance
• Prolec acquisition closing weeks ahead of schedule, adding to 2026 revenue boost

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GE Vernova dropped on Wednesday despite lifting its revenue targets for both 2026 and 2028. The stock opened up 6% before giving back gains to close down 1.3% at $683.91.

GE Vernova Inc., GEV

The power generation company reported fourth quarter Ebitda of $1.2 billion on sales of $11 billion. Analysts had projected $1.3 billion and $10.6 billion respectively.

The miss on Ebitda didn’t tell the whole story. Orders came in at $22.2 billion, crushing the $11 billion in sales and BofA analyst Andrew Obin’s $17.6 billion estimate.

Those strong orders led management to boost guidance. The company raised 2026 revenue expectations to a midpoint of $44.5 billion from $41.5 billion. The 2028 target moved up to $56 billion from $52 billion.

This marked the second guidance increase in less than two months. GE Vernova had just provided 2026 and 2028 outlooks at a December event.

The new orders came with better margins. Management expects 2026 Ebitda margins around 12%, up from 8.4% in 2025. By 2028, margins should hit 20%, translating to about $11.2 billion in Ebitda.

Profit Guidance Falls Short

The stock’s reversal likely stems from 2025 Ebitda guidance. The company’s outlook implies $5.34 billion for the year. Wall Street wants $5.47 billion.

Starting from a high bar didn’t help. Shares had climbed 95% over the prior 12 months. The stock trades at 51 times forward earnings.

Fourth quarter revenue grew 3.8% to $10.96 billion, beating the $10.22 billion consensus. The power unit saw orders jump 78%, with gas power equipment orders tripling year-over-year.

Data centers accounted for roughly one-third of fourth quarter turbine orders. Utilities are also shifting toward natural gas to meet rising electricity demand.

Strong Performance Across Divisions

Wind orders climbed 55% despite revenue declining in that segment. The electrification division posted a 55% increase in orders with revenue up 36%.

Net income hit $3.67 billion compared to $484 million a year earlier. A $2.57 billion tax benefit boosted the bottom line. Earnings per share of $13.39 crushed estimates of $3.28.

The Prolec acquisition will close in the coming days instead of mid-2026 as originally planned. The faster closing drove some of the 2026 revenue increase.

About 69% of analysts rate the stock a buy, above the S&P 500 average of 55%. The average price target sits at $768, up $76 since the December investor event. Obin maintains a buy rating with an $804 target.

The company now expects 2026 revenue between $44 billion and $45 billion, with the Prolec deal accounting for part of the increase. The 2028 forecast of $56 billion reflects continued growth across all business segments.

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