Earnings
Home›Earnings›Results›GE Vernova faces EPS miss as AI-driven power demand li…
GE Vernova faces EPS miss as AI-driven power demand lifts orders
Revenue rose 22% year over year to $11.1 billion, but adjusted EPS of $2.47 fell $0.57 below expectations, while backlog hit a record $176 billion.
GE Vernova, the power equipment company, reported second-quarter 2026 revenue of $11.1 billion, up 22% year over year and above the $10.79 billion Wall Street forecast, helped by demand for grid equipment tied to AI data centers. Yahoo Finance notes the report also highlighted a projected 22% year-over-year increase in US data center power consumption, with total grid demand nearing 134.4 GW by 2030.
Despite the top-line beat, the stock dropped more than 7% in pre-market trading after GE Vernova posted an adjusted earnings per share of $2.47, which was $0.57 below the expected $3.04. The miss amounted to an 18.8% earnings shortfall, driven in part by a warning that anticipated global tariff revisions could add $100 million to $200 million in 2026 cost headwinds.
The company pointed to strong demand trends underneath the earnings pressure, with total orders increasing 88% organically to $24.2 billion in the quarter and bringing backlog to a record $176 billion. The article says this backlog level reflected a $13 billion sequential increase and keeps GE Vernova on track for a $200 billion backlog target by 2027.
Operationally, GE Vernova said its Wind segment remains the biggest drag, with Wind revenue down 10% year over year to $2.03 billion and core EBITDA losses rising to $275 million due to reduced onshore equipment deliveries. At the same time, Power and Electrification posted margin expansion, and the company reported quarterly free cash flow of $5.1 billion.