Shares of GE Vernova surged on Wednesday after the energy company raised its full-year outlook and reported strong first-quarter results, underscoring the growing impact of artificial intelligence-driven data center demand on its business.
The stock climbed about 13%, extending its rally to nearly 70% year-to-date, as investors responded to accelerating growth in the company’s power and electrification segments.
Data center demand drives electrification growth
GE Vernova’s electrification business has emerged as a key growth engine, benefiting from rising investment in infrastructure needed to support AI and large-scale data centers.
The unit’s backlog has expanded sharply to around $42 billion, up from approximately $9 billion at the end of 2022, reflecting sustained demand for transformers, grid equipment, and high-voltage systems.
“We expect substantially more growth moving forward,” Chief Executive Scott Strazik said on a call with analysts, highlighting the strength of the company’s order pipeline.
Strazik noted that data centers accounted for roughly $2.4 billion in electrification orders during the latest quarter, exceeding the segment’s total for the entire previous year.
“Just to repeat that, our 1Q electrification orders to data centers were more than full-year 2025 results,” Strazik said. “We expect to continue growing this portion of our backlog, as we benefit from accelerating demand and invest in new products to expand our offerings for data centers.”
Strong earnings and raised outlook
The company’s financial performance in the first quarter reflected broad-based strength across its core businesses.
GE Vernova reported a profit of $4.8 billion, or $17.44 per share, compared with $264 million$264 million, or 91 cents per share, a year earlier. The results were significantly above analyst expectations of $1.95 per share, according to FactSet.
The latest quarter included a $4 billion pre-tax gain related to the Prolec GE acquisition.
Revenue rose 16% to $9.34 billion, surpassing Wall Street estimates of $9.25 billion, supported by strong order growth and services demand.
Total orders jumped 71% to $18.3 billion, while overall backlog reached $163 billion, driven by growth across all segments and contributions from the Prolec GE acquisition.
Reflecting the momentum, the company raised its 2026 revenue outlook to a range of $44.5 billion to $45.5 billion, up from a prior forecast of $44 billion to $45 billion. It also lifted expectations for free cash flow and adjusted EBITDA margins.
Chief Financial Officer Ken Parks attributed the improved outlook to robust equipment orders across all business units and continued strength in services.
Power strength offsets wind weakness
GE Vernova’s power segment also delivered solid growth, benefiting from strong global demand for gas turbines and related services.
Revenue in the power unit rose 12% year over year to $5 billion, helping offset continued weakness in the wind division, where revenue declined 23% to $1.4 billion due to softer onshore equipment deliveries.
The electrification segment remained the fastest-growing division, with revenue climbing 61% to $3 billion.
Analysts at JPMorgan described the quarter as another “beat-and-raise” performance, noting that revenue, EBITDA, orders, and free cash flow all exceeded expectations in the company’s core power and electrification businesses.
They added that investors would be watching for further updates on manufacturing capacity, engagement with hyperscalers, and developments in the wind segment.
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