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GE Vernova Posts Revenue Beat, Deepens AI Ties as Shares Fall on Cautious Signals

Investor jitters reflect capacity limits, policy headwinds and towering expectations despite surging AI-driven demand.

Overview

  • Q3 revenue reached $9.969 billion, topping estimates, while GAAP EPS of $1.64 missed the $1.92 consensus; full‑year guidance was reaffirmed toward the high end for revenue of $36–$37 billion with 8%–9% adjusted EBITDA margin and $3.0–$3.5 billion in free cash flow.
  • Orders accelerated: Power rose 50% to $7.8 billion and Electrification jumped 102% to $5.1 billion, with year‑to‑date backlog up $16 billion and gas power backlog and reservations increasing to 62 gigawatts.
  • Capacity remains tight as turbines are largely sold out through 2028 and the company is taking 2029 orders; transformer manufacturing slots are filling into 2027.
  • Hyperscaler demand is expanding with about $900 million in electrical‑equipment orders year to date and roughly one‑third of paid turbine reservations linked to hyperscalers; CEO Scott Strazik said he met multiple times with OpenAI’s Sam Altman to discuss power needs.
  • GE Vernova agreed to buy the remaining 50% of Prolec GE for about $5.275 billion, targeting a mid‑2026 close, as it flags $300–$400 million of tariff impacts and permitting risks that could pressure onshore wind in 2026; shares fell as much as 9% intraday despite an ~$8 billion cash balance and no debt.