General Electric (GE) Vernova (GEV) stock has been on a remarkable rally in 2026, building on its strong performance from the previous year. The stock has surged by 34% since the beginning of the year, reaching a record high of $894.93 on Feb. 25. This impressive growth, amounting to a 160% increase over the past 12 months, has been primarily driven by the surging demand for electricity.
GE Vernova is a key player in the power generation equipment and services industry, offering grid solutions and energy storage systems. The company has been experiencing a significant uptick in demand for its offerings, fueled by the increasing investment in artificial intelligence infrastructure, particularly in data centers. Additionally, the ongoing electrification of transportation and commercial buildings is leading to a rise in power consumption. The transition towards cleaner and more resilient energy systems is also contributing to a sustained capital investment cycle in power infrastructure, creating long-term growth opportunities for GE Vernova.
The company’s growing backlog and strong margins provide a solid foundation for future growth, instilling confidence in investors. GE Vernova recently announced plans to double its dividend in 2026 compared to the previous year and increased its share repurchase authorization to $10 billion from $6 billion. These strategic moves, coupled with the favorable demand and pricing trends, position GE Vernova well for continued growth and reinforce its investment case.
In 2025, GE Vernova witnessed a 34% organic growth in orders, reaching $59.3 billion, driven by robust equipment demand in the power and electrification segments, along with steady services growth. This surge propelled the total backlog to $150 billion, providing substantial revenue visibility. The company’s revenue for the same year increased by 9% year-over-year to $38.1 billion, with notable strength in electrification and gas power. Moreover, profitability improved significantly, supported by higher price realization, increased volumes, and operational productivity gains.
GE Vernova’s profitability is further supported by the substantial expansion in equipment backlog margin dollars. The company added $8 billion in equipment backlog margin dollars in 2025, exceeding the total from the previous two years combined. The equipment backlog ended the year at $64 billion, marking a 50% year-over-year increase, with a six-point improvement in equipment margins. Notably, margins within the Power segment increased by 11 points, predominantly driven by the strong performance in the gas power business.
Moving forward, GE Vernova anticipates its growth momentum to continue in 2026. The company expects higher-priced gas slot reservation agreements to convert into orders, while grid equipment demand remains robust. Operationally, GE Vernova is focusing on variable cost productivity, lean manufacturing, and capacity expansion to capitalize on sustained demand. The company is set to increase its gas turbine production capacity to approximately 20 gigawatts annually by mid-2026, positioning itself for further growth. Additionally, the integration of the Prolec GE acquisition is expected to enhance electrification margins through pricing and volume leverage.
The guidance for 2026, now inclusive of the Prolec GE acquisition, reflects increased confidence in GE Vernova’s prospects. Revenue is projected to range between $44 billion and $45 billion, up from the previous estimate of $41 billion to $42 billion. Adjusted EBITDA margins are anticipated to expand to 11% to 13%, compared to 8.4% in 2025, driven by the conversion of higher-priced backlog into revenue and improved execution. Earnings are expected to be weighted towards the second half of the year, with the fourth quarter representing the peak in revenue and EBITDA.
Looking ahead to 2028, GE Vernova has raised its outlook, targeting at least $56 billion in revenue by that year, implying a low-teens compound annual growth rate from current levels. Adjusted EBITDA margins are projected to reach 20%, more than double the levels seen in 2025. With a rapidly expanding backlog, improving margins, and increasing cash generation, GE Vernova is well-positioned to deliver sustained and profitable growth, which could provide substantial support for its share price.
The rally in GE Vernova’s stock to record highs is underpinned by strong demand and improving profitability. With order growth, a $150 billion backlog, expanding equipment margins, and raised guidance for 2026 and 2028, the company is expected to deliver robust earnings in the future. Furthermore, the company’s accelerating free cash flow, dividend growth, and expanded buyback authorization all support its potential for further upside.
While investors may consider taking partial gains after the stock’s strong rally, GE Vernova’s underlying growth trajectory suggests that its momentum is likely to continue. Analysts are also bullish on GEV stock, maintaining a “Strong Buy” consensus rating. As the company continues on its growth trajectory and capitalizes on the increasing demand for its offerings, GE Vernova remains a compelling investment opportunity for those looking to capitalize on the energy sector’s growth.
