General Electric (GE) Vernova, a power and electrification company listed on the New York Stock Exchange under the ticker symbol GEV, had an exceptional year in 2025, delivering a total return of nearly 99%. The company’s stock has already risen by close to 10% in 2026, following its latest earnings report.
GE Vernova’s Q4 2025 earnings report, released on January 28, showcased impressive growth. The company reported sales of just under $11 billion, representing a 3.8% increase from the previous year. This figure surpassed analyst estimates of $10.2 billion, implying a revenue decline of 3.4%. Additionally, GE Vernova posted a significant earnings per share (EPS) beat, reporting $13.39 compared to estimates of $2.99. However, it’s important to note that this substantial beat was primarily due to a one-time $2.9 billion tax benefit, which boosted the company’s net income.
Despite the EPS beat, GEV shares only rose by 2.7% on the day of the earnings release. The company’s underlying metrics, such as orders and backlog, also showed strong performance. Orders surged to $22.2 billion, a 43% increase from the previous quarter, while the backlog rose by $15 billion to $150 billion. The Power and Electrification segments were key drivers of this growth, with orders and backlogs in these areas increasing significantly.
GE Vernova’s profitability also improved, with adjusted EBITDA margin rising to 10.7% and free cash flow increasing by 118% to $3.7 billion for the full year. The company raised its guidance projections to reflect its planned acquisition of GE Prolec, anticipating revenue of $56 billion by 2028 and cumulative free cash flow of over $24 billion from 2025 to 2028.
Following the earnings report, Wall Street analysts upgraded their forecasts on GE Vernova shares. Citigroup raised its price target by 10% to $779, while TD Cowen increased its projections by nearly 15% to $780. The MarketBeat consensus price target for GE Vernova is around $731, suggesting a potential 2% upside. However, updated price targets between January 28 and 29 are more bullish, averaging $842 and indicating a potential 17% increase in share price.
Despite trading at a forward P/E ratio of approximately 54x, which is double the S&P 500’s and industrial sector’s forward P/E ratios, GE Vernova remains attractive due to its strong demand and projected free cash flow growth. However, investors should be cautious of the stock’s premium valuation, as any unexpected setbacks could impact its performance.
In conclusion, GE Vernova’s strong Q4 performance and optimistic outlook have positioned the company for continued growth in the power and electrification sector. Investors should closely monitor the company’s progress and industry trends to make informed investment decisions.
