GE Vernova Inc. (NYSE: GEV) shares traded near $917 on Wednesday, October 28, up about 2.5%, after the company exceeded third-quarter estimates and raised its 2026 outlook. The stock closed Tuesday at $895.08, gaining 4.67% during the session.

The move was not linear. Shares initially fell about 2% before turning higher, while premarket trading showed the stock at $909.85 at one point.

GE Vernova reported adjusted earnings per share of $4.81, compared with analyst expectations of about $4.00. Revenue reached $12.64 billion, above the $12 billion consensus estimate and up 27% from a year earlier. Organic revenue growth was 18%.

GE VERNOVA $GEV Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $12.6B (Est. $11.99B) 🟢; +27% YoY 🔹 Organic Revenue Growth: +18% YoY 🔹 EPS: $4.81 🔹 Orders: $29.3B; +96% organically 🔹 Backlog: $197B Raises FY26 Guide: 🔹 Revenue: $46.5B-$47.5B (Est. $46.24B) 🟢; from $45.5B-$46.5B 🔹… pic.twitter.com/C8HAtfdG6I — Wall St Engine (@wallstengine) October 28, 2026

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Net income was $1.3 billion, representing a 10.2% margin. Adjusted EBITDA was $1.9 billion, with a 15.4% margin.

Orders were the strongest part of the quarterly report. They increased 96% organically to $29.3 billion, or approximately $29 billion, compared with the $21 billion expected by BofA analyst Andrew Obin. That sell-side firms model the company's order intake at all reflects GE Vernova's standing as a bellwether for electricity-infrastructure spending: spun off from General Electric in April 2024, the company builds and services the power-generation and grid equipment that utilities and data-center operators rely on.

Cash Flow, Backlog and Guidance

GE Vernova generated $6.1 billion in cash from operations during the quarter, while free cash flow totaled $5.4 billion. Backlog — contracted work to be delivered or serviced in future periods — increased by $20 billion from the previous quarter to $197 billion.

Orders have exceeded sales for several quarters. The company said equipment demand in its Power business and strength in services contributed to the latest increase, as hyperscalers compete to secure electricity capacity for artificial-intelligence data centers. That dynamic has put power-equipment suppliers at the center of the AI buildout, which is why GE Vernova's bookings are read as a gauge of how the computing boom is translating into physical infrastructure.

The company raised its full-year 2026 revenue guidance to $46.5 billion-$47.5 billion, from $45.5 billion-$46.5 billion. The new midpoint of $47 billion is above the analyst consensus of $46.2 billion, or $46.24 billion in the earnings highlights.

GE Vernova now expects an adjusted EBITDA margin of 13.5%-14.5%, compared with its previous range of 12%-14%. Free cash flow guidance increased to $16 billion-$17 billion from $11.5 billion-$12.5 billion.

Chief Executive Officer Scott Strazik said demand for electricity infrastructure is growing worldwide. The latest increase marks the second consecutive quarter in which GE Vernova has raised its guidance. The company also lifted its outlook following its July 22 report, although the stock did not rally at that time.

Trench Acquisition and Share Repurchase Authorization

GE Vernova also agreed to acquire Trench Group for $9 billion. Trench manufactures high-voltage equipment for the electrical grid, and the transaction is expected to close in late 2027. The acquisition extends the company's reach across the power chain, adding grid-level transmission equipment to a business whose $197 billion backlog already far exceeds its $12.64 billion in quarterly revenue.

The purchase price represents about 18 times expected 2026 EBITDA, while GE Vernova itself trades at approximately 36 times EBITDA. The company's board also doubled its share-repurchase authorization to $20 billion from $10 billion.

Share Performance and Analyst Views

GE Vernova shares reached a 52-week high of $1,195.96 in early July. Concerns about artificial-intelligence financing, permitting delays and political backlash have since weighed on the stock. Before Wednesday's trading, the shares were down roughly 25% from that peak and had declined 17% since the July report, underperforming the S&P 500 by about 20 percentage points.

The quarter therefore arrives at a sensitive moment for the name: with investors split over whether AI-linked power orders can keep climbing, the second straight guidance raise and the $197 billion backlog offer fresh data points on the durability of demand, while the late-2027 expected close of the Trench transaction gives the market a dated milestone for tracking execution.

Jefferies analyst Julien Dumoulin-Smith described GE Vernova as a “battleground stock.” Some investors are concerned that orders could peak, but Dumoulin-Smith called that view short-sighted and pointed to the company's backlog as support for demand into the 2030s.

He rates the stock Buy and has a $1,185 price target. According to FactSet, about 75% of analysts covering GE Vernova rate the shares Buy, while the average price target is almost $1,200.

Source: https://coincentral.com/ge-vernova-gev-stock-climbs-3-after-earnings-beat-is-the-selloff-over/