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GE Vernova shares drop after Q2 EPS miss, despite stronger orders
Orders and backlog rose, data center orders totaled $2.7 billion, and management lifted full-year 2026 revenue guidance to $45.5 billion to $46.5 billion.
GE Vernova, the GE spin-off focused on energy equipment, fell nearly 9% after reporting Q2 2026 results that included an earnings per share miss, even as demand indicators remained firm for data center power tied to AI.
The company said orders and backlog increased to $24.2 billion and $176 billion, respectively, supporting nearly 22% year over year revenue growth and a top-line beat of about $325 million versus analyst expectations. Gas power, a segment linked to AI-driven usage, added 20 gigawatts of new orders during the quarter, with production slots reportedly sold years in advance. GE Vernova also reported $2.7 billion in data center orders, alongside adjusted EBITDA margin expansion of 10.5%.
In cash flow, Q2 free cash flow came in at $5.1 billion, and the company raised its full-year 2026 revenue guidance by $1 billion versus last year to a range of $45.5 billion to $46.5 billion. However, investors reacted negatively to the EPS shortfall, with EPS of $2.47 landing about $0.70 below predictions.
GE Vernova also pointed to pressure from its wind business, where segment losses widened and it expects to lose $400 million in the segment over the full year. It further flagged additional 2026 cost increases of $100 million to $200 million due to global tariff headwinds.