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Is GE Vernova Emerging as a Key Beneficiary of the AI Power Boom?
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Key Takeaways
GEV's Q2 orders surged 88% organically to $24.2 billion, lifting backlog to about $176 billion.
Power orders jumped 134% organically, with gas equipment backlog and reservations reaching 116 GW.
Data-center orders topped $5 billion in the first half of 2026, more than double the 2025 total.
GE Vernova Inc. (GEV - Free Report) is increasingly becoming a key beneficiary of the structural growth in global electricity demand. The growth is being driven by AI and data centers, industrial electrification, grid modernization and the need for additional reliable generation capacity. GEV’s second-quarter results show that this is translating into significant orders and backlog growth.
The company generated $24.2 billion of orders in second quarter 2026, up 88% organically, while revenues increased 22% to $11.1 billion. Backlog reached approximately $176 billion, up $13 billion sequentially. Power and Electrification were the primary drivers of this momentum.
GE Vernova’s Power segment generated orders worth $16.7 billion in the second quarter, up 134% organically. The company signed 20 gigawatts (GW) of new gas equipment contracts during the quarter, while total gas equipment backlog and slot reservation agreements increased from 100 GW to 116 GW. Management expects this figure to reach at least 125 GW by the end of 2026.
Data centers are an important part of this demand. AI infrastructure requires enormous quantities of reliable electricity, and grid constraints are making additional generation capacity increasingly valuable. GEV is expanding annual gas turbine production toward 30 GW by 2030 to meet this demand.
GE Vernova’s Electrification segment reported orders worth $6.3 billion in the second quarter, up 66% organically, while revenues increased 68%. Equipment backlog reached $40.6 billion, up 69% year over year. Data-center orders exceeded $5 billion during the first half of 2026 —more than double the company’s total for 2025.
What Other Stocks Stand to Benefit From This Trend?
Along with GE Vernova, other companies are also positioned to benefit from this power-investment cycle.
Constellation Energy (CEG - Free Report) provides direct exposure to the generation side of rising U.S. electricity demand. As AI data centers, manufacturing facilities and broader electrification increase power consumption, the value of reliable, around-the-clock generation capacity is rising.
Eaton (ETN - Free Report) benefits from rising demand for electrical equipment and power-management solutions. The company is increasingly exposed to data-center construction and the broader need to manage constrained power infrastructure. Eaton and Siemens Energy have even partnered on integrated power solutions for data centers.
Earnings Estimates for GEV
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 73.09% and that for 2027 EPS implies a decline of 21.29% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a Premium
GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.92X compared with the industry average of 23.93X.
Image Source: Zacks Investment Research
GEV Stock’s Price Performance
In the past six months, the company’s shares have risen 6.1% against the industry’s 15.3% decline.
View the Zacks #1 Rank List
Image: Shutterstock
Is GE Vernova Emerging as a Key Beneficiary of the AI Power Boom?
Key Takeaways
GE Vernova Inc. (GEV - Free Report) is increasingly becoming a key beneficiary of the structural growth in global electricity demand. The growth is being driven by AI and data centers, industrial electrification, grid modernization and the need for additional reliable generation capacity. GEV’s second-quarter results show that this is translating into significant orders and backlog growth.
The company generated $24.2 billion of orders in second quarter 2026, up 88% organically, while revenues increased 22% to $11.1 billion. Backlog reached approximately $176 billion, up $13 billion sequentially. Power and Electrification were the primary drivers of this momentum.
GE Vernova’s Power segment generated orders worth $16.7 billion in the second quarter, up 134% organically. The company signed 20 gigawatts (GW) of new gas equipment contracts during the quarter, while total gas equipment backlog and slot reservation agreements increased from 100 GW to 116 GW. Management expects this figure to reach at least 125 GW by the end of 2026.
Data centers are an important part of this demand. AI infrastructure requires enormous quantities of reliable electricity, and grid constraints are making additional generation capacity increasingly valuable. GEV is expanding annual gas turbine production toward 30 GW by 2030 to meet this demand.
GE Vernova’s Electrification segment reported orders worth $6.3 billion in the second quarter, up 66% organically, while revenues increased 68%. Equipment backlog reached $40.6 billion, up 69% year over year. Data-center orders exceeded $5 billion during the first half of 2026 —more than double the company’s total for 2025.
What Other Stocks Stand to Benefit From This Trend?
Along with GE Vernova, other companies are also positioned to benefit from this power-investment cycle.
Constellation Energy (CEG - Free Report) provides direct exposure to the generation side of rising U.S. electricity demand. As AI data centers, manufacturing facilities and broader electrification increase power consumption, the value of reliable, around-the-clock generation capacity is rising.
Eaton (ETN - Free Report) benefits from rising demand for electrical equipment and power-management solutions. The company is increasingly exposed to data-center construction and the broader need to manage constrained power infrastructure. Eaton and Siemens Energy have even partnered on integrated power solutions for data centers.
Earnings Estimates for GEV
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 73.09% and that for 2027 EPS implies a decline of 21.29% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a Premium
GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.92X compared with the industry average of 23.93X.
Image Source: Zacks Investment Research
GEV Stock’s Price Performance
In the past six months, the company’s shares have risen 6.1% against the industry’s 15.3% decline.
Image Source: Zacks Investment Research
GEV’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.