GE Vernova’s stock surged to a record high following an optimistic 2026 revenue outlook and an expanded share buyback plan. On Wednesday, the power equipment manufacturer’s shares soared after raising its 2026 revenue forecast and increasing its stock repurchase program by $4 billion.
The rising electricity demand from AI and other data-intensive industries is driving robust growth in the company’s grid and gas turbine businesses. William Blair analyst Jed Dorsheimer described GE Vernova’s investor day as "exceptionally strong," noting that all bookable gas turbine capacity is sold out through 2028, with order visibility extending to 2030. The company also expects to sign contracts for 80 gigawatts of combined-cycle gas turbines by year-end.
GE Vernova doubled its quarterly dividend to 50 cents per share, with shares hitting an all-time intraday high of $725 before closing up over 12%. Since its spin-off from GE Aerospace in March 2024, the stock has surged more than 430%. At least six brokerages raised their price targets, with JPMorgan setting the highest projection at $1,000.
The company increased its share repurchase authorization to $10 billion and expects annual gas turbine production to reach 20 gigawatts by mid-2026 and 24 gigawatts by 2028. Dorsheimer noted that GE Vernova’s delivery growth aligns with competitors Siemens Energy and Mitsubishi Heavy Industries raising their own targets.
GE Vernova forecasts 16%-18% organic revenue growth for its power segment and 20% for electrification in 2026. RBC Capital analysts stated, "This outlook leaves room for further upside surprises." The company anticipates free cash flow of $4.5-$5 billion next year, up from $3.5-$4 billion in 2025.
CEO Scott Strazik highlighted efforts to boost U.S. yttrium reserves, reducing reliance on external suppliers for energy, aerospace, and semiconductor applications.
Since 2025, GE Vernova (GEV) has surged over 115%, reflecting strong demand driven by AI-related power consumption, electrification initiatives, and global decarbonization. The company’s diversified portfolio—spanning power generation, grid transmission, and energy storage—positions it for sustained growth amid rising infrastructure investments.
Operationally, GE Vernova shows no signs of slowing. Following consecutive strong quarters, management raised its mid-term outlook, projecting revenue to reach $52 billion by 2028 (up from $36-$37 billion in 2025) and EBITDA margins of ~20% (versus 8%-9% in 2025). Power and electrification are expected to lead growth, with margins around 22%.
Robust cash flow is anticipated, with cumulative free cash flow of $22 billion from 2025-2028, even after nearly $10 billion in capex and R&D. This combination of structural demand, margin expansion, and strong cash generation reinforces the bullish case.
JPMorgan recently raised its price target to $1,000—implying ~60% upside from December 9’s close of $625.30—citing GE Vernova’s multi-year energy investment cycle. Management expects 2026 revenue of $41-$42 billion, with adjusted EBITDA margins rising to 11%-13% on higher-margin order conversions and favorable pricing.
Gas-fired power is driving growth in the power segment, supported by higher output, steady service demand, and pricing power. Electrification is poised to accelerate in 2026, with margin expansion as more profitable orders are fulfilled.
Global power demand is boosting orders for advanced generation and grid solutions, particularly for gas turbines in North America and the Middle East. Electrification orders are also surging, led by grid modernization in Europe and rising demand across North America, the Middle East, and Asia.
With AI, data center expansion, and electrification fueling power consumption, GE Vernova’s growth trajectory appears sustainable. If the company delivers on its multi-year targets, JPMorgan’s $1,000 forecast may prove less speculative and more reflective of fundamental strength. While the timeline remains uncertain, the bullish thesis is gaining credibility.
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