GE Vernova Lifts 2026 Revenue and Cash Flow Forecast on Surging Power Orders

GE Vernova on Wednesday raised its full-year financial forecasts for the second consecutive quarter, signaling robust demand for its power generation equipment and services fueled by the expansion of data centers and broader electrification trends.

Updated Financial Outlook

The company now expects full-year 2026 revenue to be between $45.5 billion and $46.5 billion, an increase from its previous guidance of $44.5 billion to $45.5 billion. This revised forecast aligns with analysts' consensus estimates of $45.45 billion, according to LSEG data.

More significantly, GE Vernova substantially increased its free cash flow projection. It now anticipates generating $11.5 billion to $12.5 billion in free cash flow for the year, a major upward revision from the prior range of $6.5 billion to $7.5 billion.

Surging Orders Drive Growth

The upgraded guidance is underpinned by a sharp increase in customer demand. The company reported $24.2 billion in orders for the second quarter, nearly double the $12.4 billion recorded in the same period last year.

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This demand is largely driven by forecasts for rising U.S. power consumption in 2026 and 2027. CEO Scott Strazik noted the company expects to have at least 125 gigawatts of gas equipment under contract by the end of 2026. He also reaffirmed that GE Vernova is on track to reach an annual gas turbine output of 20 GW in the third quarter of 2026, with plans to increase that to 24 GW in 2028.

Segment Performance and Headwinds

Both of the company's main divisions showed strong profitability in the quarter. The electrification unit reported a core profit of $671 million, more than doubling from $314 million a year ago. The power unit posted a core profit of $1.03 billion, a nearly 31.3% increase.

Despite the strong performance, the company anticipates that global tariffs will increase its costs by approximately $100 million to $200 million in 2026. GE Vernova stated it is working to recover some of these costs through contract protections and other efforts.