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Investor focus will be mainly on recovery in the residential business and data center inflection. Fourth quarter 2025 revenues declined 12% due to weaker demand for home standby and portable generators amid a softer outage environment. However, increases in sales to data center customers and higher shipments of residential energy technology products acted as tailwinds.
Within residential energy technology, ecobee is emerging as a strategic asset, with roughly 5 million connected homes and increased energy services and subscription sales. With the integration of PWRcell 2, PowerMicro microinverter and next-gen standby generators with ecobee, Generac aims to create a differentiated residential energy ecosystem.
Coming to the Commercial & Industrial (C&I) segment sales, the most compelling element is GNRC’s expanding exposure to the data center market. Management expects its entry in the data-center vertical to be a strong business opportunity in the long term for the C&I segment amid accelerating investment in data centers and the proliferation of artificial intelligence.
At the end of 2025, Generac’s data center backlog reached $400 million, and management updated this metric to $700 million at its Investor Day held in March. Management sounded upbeat about the data center opportunity and noted massive hyperscaler capex spending as a major catalyst. The company highlighted that the scale of modern data centers is expanding rapidly, with facilities moving from hundreds of megawatts toward gigawatt-level campuses. Generac outlined a path to approximately $1 billion in data center-related business by 2028. The company is focused on capacity expansion for large megawatt generators to support accelerating demand.
Management reiterated all its previous guidance for 2026 at the Investor Day event. For the first quarter, the company expects overall revenue growth of 11-13%, driven by elevated portable generator demand following winter storm Fern and increasing shipments into data center customers.
The Zacks Consensus Estimate for the first quarter of Residential products' revenues is pegged at $518 million. C&I segment sales are expected to be $439 million.
Nonetheless, sales mix shift toward C&I, new product transition and C&I plant start-up costs could weigh on margins. Within the residential segment, Generac continues to face inherent demand volatility tied to weather patterns.
Also, on the last earnings call, GNRC noted that residential energy growth in 2025 was largely driven by Puerto Rico’s energy grant-related program. However, with the completion of the program, Generac expects energy storage systems’ shipments to decline in 2026. The company is also looking to “recalibrate” its investments and expects the solar and storage market to contract in 2026 due to reduced U.S. federal incentives. This might have weighed on the first-quarter performance
Volatile macroeconomic conditions, including tariff troubles, stiff competition and increasing operating costs (mainly due to higher marketing spending), remain additional concerns for Generac.
Key Highlights
On March 18, 2026, Generac introduced its latest industrial-grade diesel generators, the SD1250 and SD1500. Designed specifically for high-demand, mission-critical environments, these generators aim to bridge a crucial gap in the industrial power market by offering enhanced efficiency, reliability and performance. With increasing reliance on digital infrastructure, healthcare systems and heavy industrial operations, power outages can lead to substantial financial losses, operational disruptions and even safety risks.
Generac’s SD1250 and SD1500 generators are strategically designed to address these challenges. By targeting applications such as data centers, healthcare facilities, water and wastewater utilities and heavy commercial and industrial operations, the company is positioning these generators as dependable backbone systems for critical infrastructure.
On Feb. 19, 2026, Generac announced an agreement to acquire Enercon Engineering, Inc to enhance its C&I manufacturing capacity. The company is a designer and manufacturer of custom power equipment and industrial enclosures, used mainly for high-reliability applications.
What Does Our Model Unveil for GNRC?
Our proven model predicts an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.
Generac has an Earnings ESP of +4.78% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
Sandisk is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SNDK’s to-be-reported quarter’s earnings and revenues is pegged at $13.92 per share and $4.55 billion, respectively. Shares of SNDK have skyrocketed 2,759.3% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. MPWR is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $781.1 million, respectively. Shares of MPWR are up 171.8% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2 at present. SIRI is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for SIRI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $2.07 billion, respectively. Shares of SIRI are up 29.2% in the past year.
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Generac Holdings to Report Q1 Earnings: Here's What to Expect
Key Takeaways
Generac Holdings Inc. (GNRC - Free Report) will report first-quarter 2026 results on April 29, before the market opens.
The Zacks Consensus Estimate for revenues is pinned at $1.04 billion, up 10.8% from the prior-year reported number.
The consensus estimate for earnings is pinned at $1.33 per share, up 5.6% year over year. The estimate has gone up 4 cents in the past 60 days.
GNRC’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 5.4%.
Image Source: Zacks Investment Research
In the past year, shares of the company have gained 93.1% compared with the Zacks Manufacturing-General Industrial industry’s growth of 26.4%.
Factors at Play Ahead of GNRC’s Q1 Results
Investor focus will be mainly on recovery in the residential business and data center inflection. Fourth quarter 2025 revenues declined 12% due to weaker demand for home standby and portable generators amid a softer outage environment. However, increases in sales to data center customers and higher shipments of residential energy technology products acted as tailwinds.
Within residential energy technology, ecobee is emerging as a strategic asset, with roughly 5 million connected homes and increased energy services and subscription sales. With the integration of PWRcell 2, PowerMicro microinverter and next-gen standby generators with ecobee, Generac aims to create a differentiated residential energy ecosystem.
Coming to the Commercial & Industrial (C&I) segment sales, the most compelling element is GNRC’s expanding exposure to the data center market. Management expects its entry in the data-center vertical to be a strong business opportunity in the long term for the C&I segment amid accelerating investment in data centers and the proliferation of artificial intelligence.
At the end of 2025, Generac’s data center backlog reached $400 million, and management updated this metric to $700 million at its Investor Day held in March. Management sounded upbeat about the data center opportunity and noted massive hyperscaler capex spending as a major catalyst. The company highlighted that the scale of modern data centers is expanding rapidly, with facilities moving from hundreds of megawatts toward gigawatt-level campuses. Generac outlined a path to approximately $1 billion in data center-related business by 2028. The company is focused on capacity expansion for large megawatt generators to support accelerating demand.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
Management reiterated all its previous guidance for 2026 at the Investor Day event. For the first quarter, the company expects overall revenue growth of 11-13%, driven by elevated portable generator demand following winter storm Fern and increasing shipments into data center customers.
The Zacks Consensus Estimate for the first quarter of Residential products' revenues is pegged at $518 million. C&I segment sales are expected to be $439 million.
Nonetheless, sales mix shift toward C&I, new product transition and C&I plant start-up costs could weigh on margins. Within the residential segment, Generac continues to face inherent demand volatility tied to weather patterns.
Also, on the last earnings call, GNRC noted that residential energy growth in 2025 was largely driven by Puerto Rico’s energy grant-related program. However, with the completion of the program, Generac expects energy storage systems’ shipments to decline in 2026. The company is also looking to “recalibrate” its investments and expects the solar and storage market to contract in 2026 due to reduced U.S. federal incentives. This might have weighed on the first-quarter performance
Volatile macroeconomic conditions, including tariff troubles, stiff competition and increasing operating costs (mainly due to higher marketing spending), remain additional concerns for Generac.
Key Highlights
On March 18, 2026, Generac introduced its latest industrial-grade diesel generators, the SD1250 and SD1500. Designed specifically for high-demand, mission-critical environments, these generators aim to bridge a crucial gap in the industrial power market by offering enhanced efficiency, reliability and performance. With increasing reliance on digital infrastructure, healthcare systems and heavy industrial operations, power outages can lead to substantial financial losses, operational disruptions and even safety risks.
Generac’s SD1250 and SD1500 generators are strategically designed to address these challenges. By targeting applications such as data centers, healthcare facilities, water and wastewater utilities and heavy commercial and industrial operations, the company is positioning these generators as dependable backbone systems for critical infrastructure.
On Feb. 19, 2026, Generac announced an agreement to acquire Enercon Engineering, Inc to enhance its C&I manufacturing capacity. The company is a designer and manufacturer of custom power equipment and industrial enclosures, used mainly for high-reliability applications.
What Does Our Model Unveil for GNRC?
Our proven model predicts an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.
Generac has an Earnings ESP of +4.78% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
Sandisk Corporation (SNDK - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandisk is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SNDK’s to-be-reported quarter’s earnings and revenues is pegged at $13.92 per share and $4.55 billion, respectively. Shares of SNDK have skyrocketed 2,759.3% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. MPWR is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $781.1 million, respectively. Shares of MPWR are up 171.8% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2 at present. SIRI is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for SIRI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $2.07 billion, respectively. Shares of SIRI are up 29.2% in the past year.