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Generac Holdings (GNRC) Moves 18.3% Higher: Will This Strength Last?
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Generac Holdings (GNRC - Free Report) shares rallied 18.3% in the last trading session to close at $207.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% loss over the past four weeks.
Generac shares received a boost following the deal with Amazon. The company has secured a major long-term supply agreement with Amazon, significantly strengthening its position in the rapidly expanding data center infrastructure market.
In a regulatory filing, Generac disclosed that it will supply backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. Generac also issued Amazon.com NV Investment Holdings LLC a warrant to acquire up to 1,693,745 shares of its common stock at an exercise price of $200.9266 per share. Amazon.com NV Investment Holdings LLC is a wholly owned subsidiary of Amazon.
Of the total warrant shares, 307,954 vested immediately. Generac added that the remaining warrant shares will vest in tranches contingent upon aggregate gross payments, net of certain offsets, received by Generac and its affiliates from or on behalf of Amazon and its affiliates for backup power generators, extending up to a total of $8 billion of qualifying payments.
The Amazon agreement adds considerable scale and visibility to a data center business that is fast emerging as Generac’s key growth engine amid accelerating infrastructure investments and AI adoption.
Generac generated more than $100 million of data center revenues in the second quarter and secured two multi-year hyperscale supply agreements. On the last earnings call, Generac noted that the data center backlog reached $1.6 billion as of July 2026, including roughly $1 billion of new orders received in the prior 90 days, while excluding expected orders from the second hyperscale agreement. Management also raised its 2026 data center revenue expectation to roughly $450 million, underscoring the rapid scaling of this business.
This generator maker is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +31.2%. Revenues are expected to be $1.32 billion, up 18.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Generac Holdings, the consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GNRC going forward to see if this recent jump can turn into more strength down the road.
Generac Holdings is part of the Zacks Manufacturing - General Industrial industry. Gates Industrial (GTES - Free Report) , another stock in the same industry, closed the last trading session 1.3% higher at $25.77. GTES has returned -3% in the past month.
Gates Industrial's consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $0.44. Compared to the company's year-ago EPS, this represents a change of +12.8%. Gates Industrial currently boasts a Zacks Rank of #3 (Hold).
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Generac Holdings (GNRC) Moves 18.3% Higher: Will This Strength Last?
Generac Holdings (GNRC - Free Report) shares rallied 18.3% in the last trading session to close at $207.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% loss over the past four weeks.
Generac shares received a boost following the deal with Amazon. The company has secured a major long-term supply agreement with Amazon, significantly strengthening its position in the rapidly expanding data center infrastructure market.
In a regulatory filing, Generac disclosed that it will supply backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. Generac also issued Amazon.com NV Investment Holdings LLC a warrant to acquire up to 1,693,745 shares of its common stock at an exercise price of $200.9266 per share. Amazon.com NV Investment Holdings LLC is a wholly owned subsidiary of Amazon.
Of the total warrant shares, 307,954 vested immediately. Generac added that the remaining warrant shares will vest in tranches contingent upon aggregate gross payments, net of certain offsets, received by Generac and its affiliates from or on behalf of Amazon and its affiliates for backup power generators, extending up to a total of $8 billion of qualifying payments.
The Amazon agreement adds considerable scale and visibility to a data center business that is fast emerging as Generac’s key growth engine amid accelerating infrastructure investments and AI adoption.
Generac generated more than $100 million of data center revenues in the second quarter and secured two multi-year hyperscale supply agreements. On the last earnings call, Generac noted that the data center backlog reached $1.6 billion as of July 2026, including roughly $1 billion of new orders received in the prior 90 days, while excluding expected orders from the second hyperscale agreement. Management also raised its 2026 data center revenue expectation to roughly $450 million, underscoring the rapid scaling of this business.
This generator maker is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +31.2%. Revenues are expected to be $1.32 billion, up 18.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Generac Holdings, the consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GNRC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Generac Holdings is part of the Zacks Manufacturing - General Industrial industry. Gates Industrial (GTES - Free Report) , another stock in the same industry, closed the last trading session 1.3% higher at $25.77. GTES has returned -3% in the past month.
Gates Industrial's consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $0.44. Compared to the company's year-ago EPS, this represents a change of +12.8%. Gates Industrial currently boasts a Zacks Rank of #3 (Hold).