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GE Vernova Lifts Outlook After Q1 Beat as AI Data Centers Drive Orders

Backlog growth points to a multi-year buildout of power gear for AI data centers.

Overview

  • GE Vernova, which reported first-quarter results Wednesday, topped estimates with earnings of $17.44 per share on about $9.3 billion in sales and raised its 2026 targets for revenue, profit margin, and free cash flow.
  • Orders reached $18.3 billion in Q1, up 71% year over year, pushing total backlog to roughly $163 billion, with management now aiming for $200 billion by 2027.
  • The company booked about $2.4 billion in data center electrification orders, more than its 2025 total, as hyperscalers ramp spending on transformers, switchgear, and high-voltage gear to power AI computing.
  • Free cash flow came in at roughly $4.8 billion for the quarter, and the stock jumped nearly 14% after the report in a broad re-rating of GE Vernova’s role in the AI energy buildout.
  • Power and Electrification are lifting margins, but the Wind unit posted a roughly $382 million Q1 loss and is still expected to weigh on 2026 results, with execution, supply chains, and permitting timelines flagged as delivery risks.