GE Vernova (GEV) Stock Drops As Q2 Earnings Miss Overshadows Revenue Beat

TLDR

• GEV stock fell 2.7% premarket after Q2 adjusted EPS of $2.47 missed the $3.04 consensus
• Revenue hit $11.1 billion, up 22% year-over-year, beating the $10.73 billion estimate
• Full-year 2026 revenue guidance raised to $45.5–$46.5 billion
• Free cash flow outlook nearly doubled, raised to $11.5–$12.5 billion from $6.5–$7.5 billion
• Orders surged 88% organically to $24.2 billion, led by Power and Electrification segments

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GE Vernova reported Q2 2026 results on Wednesday that beat on revenue but missed on the bottom line. The stock dropped 2.7% in premarket trading after the print.

GE Vernova Inc., GEV

Adjusted EPS came in at $2.47, well below the analyst consensus of $3.04. Revenue reached $11.1 billion, topping estimates of $10.73 billion and rising 22% from the same period last year.

The growth was driven by the Power and Electrification segments, which were up 12% organically. Those two units have been the core of GEV’s story for the past several quarters.

$GEV Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $11.10B (Est. $10.7B) 🟢; +22% YoY
🔹 Orders: $24.2B; +88% organic
🔹 Backlog: $176B; +$13B QoQ
🔹 Data Center Orders: Over $5B YTD, more than double 2025 total

FY Guide:
🔹 Revenue: $45.5B-$46.5B (Est. $45.45B) 🟢
🔹 Free Cash Flow:… pic.twitter.com/jXoghJLt1W

— Wall St Engine (@wallstengine) July 22, 2026

Despite the earnings miss, management raised full-year 2026 revenue guidance to $45.5–$46.5 billion. That’s up from the prior range of $44.5–$45.5 billion and puts the midpoint just above the $45.45 billion analyst consensus.

Free Cash Flow Nearly Doubled

The bigger surprise may have been on cash flow. GEV raised its annual free cash flow forecast to $11.5–$12.5 billion, up sharply from the prior range of $6.5–$7.5 billion.

In Q2 alone, free cash flow hit $5.1 billion — more than the company generated in all of 2025. Management cited improved working capital and stronger EBITDA as the drivers.

Orders were another bright spot. Total orders surged 88% organically to $24.2 billion in the quarter, compared with $12.4 billion in the same period last year. The Power segment signed 20 GW of new gas equipment contracts, bringing its backlog to 116 GW.

CEO Scott Strazik said the company now expects to have at least 125 GW of gas equipment under contract by year-end 2026, and remains on track to reach annual gas turbine output of 20 GW in Q3 2026, rising to 24 GW by 2028.

Wind Segment Remains a Drag

Not everything was moving in the right direction. The Wind segment continued to struggle, with revenues down 10% and an EBITDA loss of $275 million. Higher Offshore Wind project costs and lower Onshore Wind equipment volume were the key factors.

The Electrification segment was a different story. Core profit jumped to $671 million from $314 million a year ago. Data center orders exceeded $5 billion year-to-date, more than double the full-year 2025 total.

The Power segment posted $1.03 billion in core profit, a rise of roughly 31% year-over-year.

GEV flagged that global tariffs are expected to add $100–$200 million in costs in 2026, even after contract protections and recovery efforts.

The company maintained its adjusted EBITDA margin guidance of 12%–14% for the full year.

The backlog now stands at $176 billion.